Reader’s Question:
I just moved to Los Angeles, California from Texas. Is anyone aware of what the minimum insurance coverage is for automobile insurance? I have a compact car. Does that make a difference?
Casey
Los Angeles, CA
From what I know, every state in the United States has its own rules for the minimum coverage in vehicle insurance. Last time I checked, the state of California was using the 15/30/5 rule. Los Angeles, CA should be using this also. This would just mean that the law will require you to have a 15,000 minimum amount of liability for bodily injury to a person, with a maximum amount of 30,000. The 5 in the equation stands for the minimum 5,000 Property Damage Liability. Of course this is just the minimum requirements. You are more than welcome to get an insurance policy with higher payoffs just to make sure you have enough coverage. They are also using the tort system in this state. This simply means that somebody has to be found to be at fault in a situation. The party found to be at fault would then have to shell out the cash for whatever repairs, or payments will need to be made.
As to the type of vehicle, I do think that this is factored in when the insurance companies come up with a policy. You’re fortunate to be driving a compact car as this would generally have a lower premium compared to, say, a sports car or SUV.