California Car Insurance Requirements in 2024

Why You Can Trust Compare.com

At Compare.com, it’s our mission to find simple ways to help our customers save money on the things they need. While we partner with some of the companies and brands we talk about in our articles, all of our content is written and reviewed by our independent editorial team and never influenced by our partnerships. Learn about how we make money, review our editorial standards, and reference our data methodology to learn more about why you can trust Compare.com.

Written by Mandy Sleight Edited by Lequita Westbrooks

Updated January 25, 2024

Almost all states require drivers to have liability insurance — including California — but the minimum requirements vary by state. Understanding your state’s minimum limits is essential to avoiding penalties like fines and license suspension. And in at-fault states like California, you’d also be on the hook for damages and injuries you cause in an accident.

Although California is one of the more expensive states for auto insurance, it’s one of the few states that don’t allow credit history as a rating factor. Keep reading to learn about California’s minimum liability requirements, why you might need higher limits, and optional coverages to consider.

What Are California’s Car Insurance Requirements?

Like in most states, California car insurance laws require drivers to meet minimum liability coverage requirements. You must have proof of insurance and present it if you’re pulled over, need to renew your vehicle registration, or after a car accident.

Here are the coverage requirements according to the California Department of Motor Vehicles.

Bodily injury liability coverage

Bodily injury liability coverage pays for injuries you cause to someone else when you’re at fault in an auto accident. California drivers must have a minimum of 15/30 in bodily injury coverage, which means at least:

• $15,000 per person
• $30,000 per accident for all injuries

This coverage pays for the injured driver’s (and their passengers’) medical expenses, lost wages, pain and suffering, and funeral expenses if someone dies from accident injuries.

Property damage liability coverage

The other part of liability coverage is property damage liability, which pays for damage you cause to someone else’s property, like a:

• Vehicle
• House
• Commercial building
• Utility pole
• Tree
• Guardrail
• Mailbox
• Bicycle
• Garage door

California law requires you to have at least $5,000 in property damage coverage.

Are California Minimum Car Insurance Requirements Enough?

California’s minimum car insurance requirements are among the lowest in the country. Although 15/30/5 is enough to satisfy the California Department of Insurance, it could put you at risk financially.

If you cause an accident in California, you’ll have to cover the damages yourself if it exceeds your coverage limits — you could also be sued.

For example, let’s say you have state-minimum coverage and T-bone someone in an intersection, causing severe injuries to the driver and passenger. The driver’s medical bills are $50,000, and the passenger’s $25,000. Their vehicle is totaled, costing $30,000 to replace.

Since the injuries and damage exceed your auto liability insurance, you have to pay the extra amount, plus more if they sue you for pain and suffering and win. Buying enough liability insurance to cover your personal assets can protect you from financial ruin.

Optional coverages (like the ones we’ll discuss in the next section) can also cover your vehicle damages and medical treatment.

Optional car insurance coverage in California

Although the coverages in the table below are optional, they may be valuable to you. Consider that almost 17% of California drivers are uninsured, according to the Insurance Information Institute. And keep in mind that comprehensive and collision coverages may be required if you finance or lease your vehicle.

Again, it’s important to be aware of specific California auto insurance laws to make an informed decision about the optional coverage you should choose. You should also be aware of penalties for driving uninsured. Let’s dive into these laws in more detail.

Penalties for Driving Without Car Insurance in California

You could face fines and vehicle impoundment if your insurance policy fails to meet the minimum California car insurance requirements. The fine is between $100 and $200 for driving without insurance and increases to $500 or more if you’re caught again in the next three years.

And don’t think about creating a fake ID card. You can get charged with a misdemeanor that could include:

• 30 days in jail
• Up to $750 fine
• Up to one-year license suspension

California Car Insurance Laws You Should Know About

State car insurance laws can change at any time. It’s your responsibility to be aware of any changes that could affect you and ensure you have adequate coverage on the road.

Fortunately, California has programs to help people struggling to afford auto insurance. Here are some California-specific laws and programs that you should know about.

California Low Cost Automobile Insurance Program

Low-income drivers can qualify for California’s Low Cost Auto Insurance Program (CLCA), which satisfies the state’s financial responsibility laws. Coverage may be cheaper than having the same coverage with a standard insurance company.

California Automobile Assigned Risk Plan

The California Automobile Assigned Risk Plan (CAARP) is for high-risk drivers who have been turned down by at least one insurance company due to their driving record. These policies meet the state’s auto insurance requirements but are usually more expensive than an equivalent car insurance policy on the standard market.

The Protect California Drivers Act

The Protect California Drivers Act (SB1107) was passed in 2022, amending California Vehicle Code 16056 and approving a future increase to the California’s minimum coverage requirements. The current mandatory minimums have been in place since 1967.

Starting on January 1, 2025, California drivers must have higher liability limits of:

• $30,000 per person for bodily injury
• $60,000 per accident for bodily injury
• $15,000 per accident for property damage

Other Ways to Prove Financial Responsibility in California

“Proof of financial responsibility” essentially means you can cover the expenses associated with an auto accident. Besides an auto insurance policy that meets the state’s requirements, California offers other ways to prove financial responsibility. No matter which option you choose, you must have proof of insurance while driving.

Surety bond

A surety bond is a written guarantee that protects other drivers but not yourself. You can purchase a surety bond from any business licensed to sell them by the state of California.

The insurer agrees to pay up to the bond amount of $35,000 if you cause an accident. You must then work with the surety company to reimburse them for what they paid. Any costs over the bond amount are also your responsibility to pay.

Certificate of self-insurance

If you own over 25 vehicles, you can sign a certificate of self-insurance issued by the California DMV. Even with the certificate, you’re still financially responsible for paying for any injuries or damage you cause to others.

Cash deposit

You can also make a cash deposit of $35,000 to the California DMV, which will be used to cover any damages or injuries you cause in a car accident. You’re still responsible for any damages over the deposit amount.

How Much Does Car Insurance Cost in California?

The average cost of car insurance in California is $70 per month for liability and $148 for full coverage. Liability-only insurance pays for any injuries or damage you cause to others in an accident.

Full coverage provides greater protection and generally includes liability, comprehensive, and collision insurance (it may also include other coverages). It covers damage to your vehicle and others involved in a car accident. The additional coverage is why full-coverage insurance costs more than just liability.

The table below shows data from seven of California’s cheapest car insurance companies for a driver with a clean driving record. But keep in mind that drivers with less-than-perfect records, resulting from things like an at-fault accident or DUI, will pay more.

Wawanesa offers the cheapest average rates for drivers in California, according to our data — but other insurers on our list also offer competitive rates. USAA also offers the same liability-only rate as Wawanessa, but most drivers aren’t eligible for USAA policies since it’s restricted to military members and their families.

Keep in mind that the rates you receive will be based on factors such as your driving history, where you live, and even your age, which is why it’s important to get quotes from different insurance companies in California to lock in the best rate.

California Auto Insurance FAQs

Knowing how much car insurance you need in California can ensure you get the right coverage and avoid hefty penalties. We answered some of the most common questions about California auto insurance below.

Can you register your car without insurance in California?

No. California requires at least 15/30/5 liability car insurance coverage to register a vehicle. Comparing quotes can help you find the best deal on the coverage you need so you’re prepared when it’s time to register your car.

Does California require comprehensive insurance?

No. Comprehensive insurance is optional in California. But if you lease or finance your vehicle, your lender or leasing company will likely require you to buy comprehensive and collision insurance to protect their investment.

Is a CARCO inspection required in California?

No. California doesn’t require a CARCO inspection. CARCO inspections are only required in a few states: Florida, Massachusetts, New Jersey, New York, and Rhode Island.

Does California have a grace period for car insurance?

No. California doesn’t have a grace period for car insurance. However, most auto insurance companies offer a grace period between two and 30 days to pay your premium past its due date. The grace period can vary by insurer, so make sure you understand how long you have to avoid an insurance lapse, which can cause your rates to increase.

Why would someone need an SR-22 in California?

An SR-22 is a certificate some states require for high-risk drivers. Your insurance company submits the SR-22 form to the state’s DMV to prove your insurance policy meets the state’s car insurance requirements. California doesn’t have an SR-22 insurance requirement.

Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information. All the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.

Sources

1. AIPSO, “California Automobile Assigned Risk Plan Manual,” Accessed January 9, 2024.
2. California Department of Motor Vehicles, “Auto Insurance Requirements,” Accessed January 9, 2024.
3. California Department of Motor Vehicles, “Financial Responsibility (Insurance) Requirements for Vehicle Registration,” Accessed January 9, 2024.
4. California’s Low Cost Auto Insurance, “Who Qualifies?,’ Accessed January 9, 2024.
5. California Senator Bill Dodd, “Sen. Dodd: Governor Signs Auto Liability Insurance Reform Bill,” Accessed January 9, 2024.
6. Insurance Information Institute, “Facts + Statistics: Uninsured motorists,” Accessed January 9, 2024.
7. National Association of Insurance Commissioners, “Credit-Based Insurance Scores,” Accessed January 9, 2024.

Mandy Sleight Auto Insurance Writer

Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She is a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications. She uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content to help readers make smarter insurance choices that have a positive effect on their budgets and finances.