15/30/5; Which means the most your insurance would pay for 1 injury would be $15K and the most they can pay for more than 2 or more people in an accident with injuries is $30K. Buy the clincher is the $5K for property damage aka car damages;;;;;;
With only $5,000 for car damages, if you are at fault, then they will go after you personally for amount over that amount.
With all car loans, you have to have collision and comprehensive to pay for damages to YOUR auto, but they might think if you carry the minimum, that they might go after your assets (your car) to pay someone if not enough coverage.
They're completely not related. What California requires, is the insurance you have to carry, if you decide to drive your car on public roads.
What the lender requires, is what you AGREED TO CARRY, in writing, as a condition of the loan. If this is actually a LEASE, then the owner of the vehicle most likely requires you to carry additional liability coverages, in addition to the physical damage coverage.
It's legal, because YOU AGREED TO IT! You SIGNED agreement to it. That's what a contract is - you can't change your mind now, until the contract is fulfilled.
Yes, it is. They can require their interest be protected. In most states the minimums are far too low anyway.