Car Insurance Requirements in California (2024)
California drivers must carry $15,000 per person and $30,000 per accident in bodily injury liability, as well as $5,000 in property damage liability.
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Written bySarah Sharkey
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7+ years writing insurance and personal finance content
Contributor to top media, including USA Today
A passionate personal finance advocate, Sarah’s writing has graced the pages of many of the personal finance and insurance industries’ top web publications.
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Edited byKatie Powers
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Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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Updated November 21, 2024
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Table of contents
Golden State drivers must purchase both bodily injury liability and property damage liability coverage to drive legally in the state. On average, drivers in California pay $140 per month for liability-only car insurance.[1]
On top of meeting minimum car insurance requirements, drivers in California have the option to purchase more insurance, such as collision and comprehensive coverages. No matter what kind of coverage you buy, you should always compare car insurance quotes from multiple insurance companies before buying a policy.
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California car insurance requirements
The minimum limits in California will increase on Jan. 1, 2025, to $30,000 per person in bodily injury liability, $60,000 per accident in bodily injury liability, and $15,000 in property damage liability.[2]
The state’s current minimum coverage levels are 15/30/5, meaning drivers must carry $15,000 in bodily injury liability per person, $30,000 in bodily injury liability per accident, and $5,000 in property damage liability per accident.[1]
Drivers have an opportunity to skip paying for car insurance if they make a cash deposit of $35,000 with the DMV, receive a DMV-issued certificate of self-insurance, or provide a surety bond for $35,000 from a company licensed to do business in California. But most drivers choose to purchase an auto insurance policy because it’s much cheaper than a cash deposit.
It’s easier to decide what car insurance you need when you know what the required car insurance coverage pays for.
Bodily injury liability
Bodily injury liability coverage helps pay for injuries you cause to others behind the wheel. In California, vehicle owners must carry at least $15,000 per person and $30,000 per accident in bodily injury liability coverage. The requirement will increase to $30,000 per person and $60,000 per accident in January 2025.
For example, if you cause an accident and the other driver accumulates $5,000 in related medical bills, your insurance policy would cover these costs. But your insurer will only pay up to $15,000 per person and $30,000 per accident. You can opt to carry higher limits of coverage to better protect your finances.
Property damage liability
California law also requires drivers to carry $5,000 in property damage liability coverage. But this requirement will increase to $15,000 in January 2025. This type of insurance helps pay to repair or replace another person’s vehicle or other property if you damage it during an accident.
For instance, if you cause a fender bender that damages the other driver’s vehicle, your insurance company will help you pay to repair their vehicle. But this coverage won’t help you pay to repair or replace your own vehicle.[3]
If you want help repairing your own vehicle after an incident, consider a full-coverage policy. Full-coverage car insurance includes collision coverage and comprehensive coverage, which pay for damage to your own vehicle after a covered incident.
California Low Cost Auto Insurance program
California offers a more affordable option to some drivers: the California Low Cost Auto Insurance program. To qualify, you must meet the following requirements:
Have a valid California driver’s license
Meet income eligibility guidelines
Own a vehicle valued at $25,000 or less
Meet age requirement of 18 years old (16 years old if legally emancipated)
Have a good driving record or be a new driver
The income eligibility requirements vary based on the size of your household. For example, drivers with two people in their household have an income cap of $49,300. If you qualify, the annual premium ranges from $232 to $932 per year, which includes the state’s minimum liability requirements.[4]
You can apply for this program online at MyLowCostAuto.com.
Do you need more than state-minimum coverage in California?
Liability insurance can cover the bodily injury and property damage costs of the other driver in the event of an accident, but it doesn’t cover any of your medical expenses or vehicle repair costs. Purchasing liability-only coverage is the cheapest insurance option, but it can leave you with costly expenses following an accident.
If you cause an accident and the other driver has $15,000 in vehicle damage, your minimum liability insurance can only pay $5,000 toward that person’s property damage. You’ll have to pay the remaining $10,000 out of pocket — on top of any of your own medical bills or repair costs.
Many insurance experts recommend paying for higher liability limits and opting for full coverage. Full-coverage policies include both comprehensive and collision coverage, which protects you much more than liability-only coverage. A more robust insurance policy comes at a higher cost.
If you have ample emergency savings to cover major repairs after an accident, you might choose to skip full coverage. But if you don’t want to pay for repair costs after an accident, you should consider a full-coverage policy. If you have a loan on your car, your lender will likely require you to carry full coverage to protect its investment. It’s always a good idea to consider your coverage options beyond the state’s minimum auto insurance coverage for additional protection.
The cost of liability-only car insurance in California
California drivers pay an average of $140 per month for a liability-only car insurance policy. This type of coverage helps pay for injuries and damages you cause to others.
The table below shows the average cost of liability-only car insurance policies by company in the state of California.
The below rates are estimated rates current as of: Friday, November 1 at 12:00 PM PDT.
Insurance Company ▲▼ | Average Monthly Quote ▲▼ |
|---|---|
| Mile Auto | $60 |
| Sun Coast | $94 |
| Mercury | $104 |
| Anchor | $108 |
| USAA | $123 |
| National General | $132 |
| Direct Auto | $152 |
| GEICO | $163 |
| Allstate | $169 |
| Farmers | $174 |
| State Farm | $188 |
| Travelers | $198 |
| 21st Century | $216 |
| Bristol West | $229 |
| Nationwide | $266 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
The cost of full-coverage car insurance in California
A full-coverage car insurance policy costs an average of $283 per month for California drivers. This type of policy includes both comprehensive and collision insurance. After an accident or other covered event that causes damage, comprehensive and collision coverages help pay for repairs to your own vehicle.
The table below breaks down the average full-coverage insurance costs by companies in the state.
The below rates are estimated rates current as of: Friday, November 1 at 12:00 PM PDT.
Insurance Company ▲▼ | Average Monthly Quote ▲▼ |
|---|---|
| Mile Auto | $108 |
| Mercury | $190 |
| Sun Coast | $229 |
| USAA | $248 |
| Anchor | $288 |
| National General | $329 |
| GEICO | $330 |
| Allstate | $342 |
| Farmers | $352 |
| Direct Auto | $353 |
| State Farm | $381 |
| Travelers | $400 |
| Bristol West | $411 |
| 21st Century | $436 |
| Nationwide | $537 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Penalties for driving without proof of insurance in California
Without the minimum coverage amount of auto liability insurance, California drivers face significant penalties. Here’s a closer look at the penalties you might face for driving without proof of insurance in the Golden State:
Fines: You might face hundreds of dollars in fines if law enforcement catches you driving without automobile insurance.
Impoundment: Law enforcement might impound your vehicle until you can resolve your insurance issue.
Suspended vehicle registration: Until you provide proof of insurance, you may continue to face vehicle registration suspension, depending on the situation.[5]
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Optional car insurance coverages to consider
You must carry a minimum amount of liability insurance in California. But you also have optional car insurance coverages to choose from. Tacking on additional coverage to your car insurance policy might make it more expensive, but it can better protect your wallet.
Collision coverage
Collision coverage pays for damages to your car after a collision with another vehicle or object. If your vehicle is a total loss, collision coverage will reimburse you for the actual cash value of your vehicle.
Comprehensive coverage
Comprehensive coverage pays for damage to your vehicle from a non-collision event. This may apply in situations of vandalism, theft, weather damage, or a run-in with an animal.
Uninsured/underinsured motorist coverage
If an uninsured or underinsured driver causes an accident and you suffer bodily injury, uninsured/underinsured motorist coverage will pay for your medical expenses. If the at-fault driver surpasses their bodily injury liability coverage limits, your underinsured motorist coverage will cover your medical expenses.
Medical payments (MedPay) coverage
Medical payments insurance can pay for medical expenses related to injuries you or your passengers receive in a car accident, regardless of fault.
Rental reimbursement coverage
If your vehicle is out of commission, rental reimbursement coverage helps you pay for a rental vehicle during the repair process.
Rideshare coverage
If you use your vehicle for rideshare services, like Uber or Lyft, you’ll likely need this specialized car insurance coverage. A rideshare insurance policy provides extra coverage while you use the vehicle for both personal and commercial purposes.
California car insurance requirements FAQs
It’s important to understand how much car insurance you need in California. The following information can help answer your remaining questions about minimum insurance requirements in the state.
Does California require car insurance?
Yes, in most cases. California motorists must carry a minimum amount of liability car insurance at the state’s mandated 15/30/5 limits, but the minimum requirements will increase to 30/60/15 in January 2025.
Drivers can only opt out of liability insurance if they make a cash deposit of $35,000 with the DMV, get a DMV-issued certificate of self-insurance, or provide a surety bond for $35,000 from a company licensed to do business in California.
What does 15/30/5 mean in insurance?
California’s minimum insurance requirements take the shape of a 15/30/5 liability policy. This means drivers must carry at least $15,000 in bodily injury liability coverage per person, $30,000 in bodily injury liability per accident, and $5,000 in property damage liability.
Financial responsibility requirements for minimum coverage limits will change to 30/60/15 in January 2025.
Do you need car insurance to register a car in California?
No, but you do need to submit insurance information within 30 days of registering the car. If you don’t do this, your registration may be suspended.[2] Make sure you have enough liability insurance to avoid suspension of your vehicle registration. California state law prohibits people from driving on public roads without liability insurance coverage.
What is the recommended auto insurance coverage in California?
Though California drivers currently only need to buy coverage with auto insurance liability limits of 15/30/5, most experts recommend that drivers increase their liability limits and buy more insurance protection.
Buying a full-coverage policy can provide coverage to protect your car in the event of vehicle damage. These policies include liability, collision, and comprehensive coverage. California’s minimum auto insurance requirements will increase to 30/60/15 in January 2025.
Related articles
More cities in California
Sources
- California DMV. "Auto Insurance Requirements."
- California Department of Motor Vehicles. "Financial Responsibility (Insurance) Requirements for Vehicle Registration."
- Insurance Information Institute. "What is covered by a basic auto insurance policy?."
- California's Low Cost Auto Insurance. "Who Qualifies?."
- Kelley Blue Book. "Penalties for Driving Without Car Insurance by State."
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Sarah SharkeyInsurance Writer
Sarah Sharkey is a personal finance writer who enjoys helping people make savvy financial decisions. She covered insurance and personal finance topics. You can find her work on Business Insider, Money Under 30, Rocket Mortgage, Bankrate, and more. Connect with her on LinkedIn.
Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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