Totally get where you’re coming from—it’s like, am I paying for peace of mind or just padding someone else’s wallet? But here’s how I look at it: Step 1, imagine your car gets sideswiped by someone who thinks insurance is optional. Step 2, realize your health insurance has a deductible the size of a small country. Step 3, cue the panic. I used to think I was being paranoid too, but after my buddy got stuck with a pile of bills after a fender bender, I started seeing that extra coverage as less of a “what if” and more of a “just in case.” Not saying it’s fun to pay more, but sometimes it beats the alternative...
Step 2, realize your health insurance has a deductible the size of a small country.
That line made me laugh, but it’s painfully true. I used to think the minimum was fine until my neighbor’s kid rear-ended someone and the other driver’s medical bills wiped out their savings. It’s wild how fast those costs add up. I still grumble about the premiums, but I’d rather be annoyed than broke.
It’s wild how a single accident can flip your finances upside down. I get the temptation to stick with the bare minimum—those monthly bills are no joke. But honestly, after seeing a friend get stuck paying out of pocket for someone else’s injuries, I’d rather pay a bit more upfront. The peace of mind is worth it, even if it stings every time I see that premium come out of my account. Sometimes being “cheap” just costs more in the long run...
Title: Why California’s minimum car insurance might not be enough
Sometimes being “cheap” just costs more in the long run...
That line hits hard. I used to think, “Hey, I’m a careful driver, what are the odds?” But then I started looking at the actual numbers. California’s minimums are $15k for injury per person, $30k per accident, and $5k for property damage. Five grand barely covers a fender bender if you hit a newer car. If you total someone’s Tesla? Yikes.
Here’s how I broke it down for myself:
1. Check what your assets are (even if it’s just a beat-up laptop and some textbooks).
2. Imagine the worst-case scenario—like, you rear-end a luxury SUV and there are injuries.
3. Add up the costs: medical bills, car repairs, maybe even lost wages.
4. Compare that to what your insurance would actually pay out.
If there’s a gap, guess who pays? You. Not your insurance company. That was enough to convince me to bump up my coverage, even if it means eating more ramen some months. It’s just not worth the risk.
I get where you’re coming from, and yeah, those minimums can look pretty low when you start crunching the numbers. But honestly, not everyone needs to max out their coverage, especially if they’re just scraping by or don’t have much in the way of assets.
Here’s how I see it, step by step:
1. Figure out what you actually own that could be at risk in a lawsuit. If you don’t have a house, savings, or anything valuable, there’s not much for someone to go after. Lawsuits can’t squeeze blood from a stone.
2. Look at your driving habits and where you live. If you’re not commuting much or you park your car more than you drive it, your risk is lower.
3. Think about the cost difference. Sometimes bumping up coverage isn’t just “a few extra bucks”—it can be a real stretch for some folks.
4. Don’t forget about medical payments and uninsured motorist coverage. Sometimes people focus on liability and forget those are the coverages that actually help *you* if you get hurt or hit by someone with no insurance.
I’ve seen plenty of people who kept minimums for years with zero issues. Of course, there’s always that “what if,” but for some, it’s a calculated risk worth taking until their situation changes. I’m not saying it’s ideal, but I get why people do it.
Sometimes insurance agents push higher limits because it’s safer (for everyone), but also because it’s more profitable for them. It’s not wrong to want more protection, but it’s not always practical either. I guess my point is: minimum coverage isn’t automatically reckless—it just depends on your own reality.
If you start making more or buy a home, then yeah, time to rethink those limits. Until then, it’s about balancing risk and what you can actually afford without skipping meals.
