In the state of California if you drive an automobile, state law dictates that you must be financially responsible for your actions. All drivers must show their ability to pay for damages or injury to others resulting from the ownership or operation of a motor vehicle.

California’s Compulsory Financial Responsibility Law requires every driver and owner of a motor vehicle to be financially responsible for their actions. The statutory minimum limits of liability insurance in California are as follows:

Bodily Injury

• $15,000 for death or injury of any one person, any one accident.
• $30,000 for all persons in any one accident.

Property Damage

• $5,000 for any one accident.

There are four ways to accomplish financial responsibility (FR). The first is the one most motorists choose and that is coverage by a motor vehicle or automobile liability insurance policy. A second way to have FR is a cash deposit of $35,000 with the Department of Motor Vehicles (DMV). The third is a certificate of self-insurance issued by DMV to owners of fleets of more than 25 vehicles. Finally a motorist could alternately chose a surety bond for $35,000 obtained from an insurance company licensed to do business in California.

All California drivers and owners must have at least the statutory limits of minimum liability insurance or an approved alternative way to pay for injury or property damage they may cause. Penalties are very severe for non-compliance with this section of the vehicle code.

When your car is in an accident for which you are found legally liable, bodily injury (BI) liability covers your liability to others for injuries to them. Property damage (PD) liability covers your liability for damage to someone else’s property.

So it is Bodily Injury Liability and Property Damage that is require for California drivers. Personal injury is not required but is an optional coverage that one might want to purchase to help pay for "reasonable and necessary" medical expenses for you and your passengers.