Minimum Liability Insurance Required
$15,000/Per Person Injured in an accident
$30,000/Per Accident for Bodily Injury
$5,000/Per Accident for Property Loss

What Happens If I Don’t Have Liability Coverage?

A. Your insurance company must notify DMV when your liability coverage ends, is reinstated or when you obtain new coverage from a new company or for a new vehicle. Unless you follow the steps outlined in this brochure, your vehicle registration and driver license will be suspended.

If the Department of Motor Vehicles (DMV) receives information you were involved in an accident driving a car not covered, or that a car you own was involved in an accident and wasn’t covered, your driver license and vehicle registration will be revoked for at least one year. Additionally, you have to pay a $500 civil penalty to DMV in order to get your license back. These penalties also apply if you get a traffic ticket and are found guilty of driving without insurance, or if someone else drives your vehicle while it is not covered. The court may also fine you up to $1,000, which is separate from the $500 civil penalty.

What it covers

Collision insurance covers damage to your car from impact with another vehicle, person, object or the surface of the road. You are covered even if you are at fault in the crash. It will also cover the costs of towing, storage, and salvage disposal if needed.

It does not cover loss or damage to:

• contents of any vehicle (other than some contents of a motor home)
• tires, unless the damage is caused as part of the collision any part of the vehicle as a result of mechanical breakdown
• rust
• corrosion
• wear and tear
• freezing
• explosion within the combustion chamber

Cost

Because Collision coverage deals specifically with vehicle damage, the type of vehicle you drive will have an impact on the premiums, along with your claim record and where you live.

Deductible

Your deductible is the amount of money you have to pay before your insurance kicks in to pay for the rest of the repairs. Collision deductibles can vary from $0 to $2,500 on regular vehicles.

The minimum deductible for Collision coverage is $250. The lower your deductible, the higher your premium. The higher your deductible, the lower your premium.

You have to decide how much you can afford to pay for repairs if you do have a claim, versus how much you want to pay for your premiums.

Deductible restrictions

If you have a history of at-fault crashes, you may only be able to buy collision insurance with a high deductible.

If you have an extensive history of at-fault crashes, you may not be able to buy collision insurance at all.