What Is the Minimum Insurance Requirement in California?
California raised its auto insurance requirements to 30/60/15 on Jan. 1, 2025.
In California, all drivers must have auto insurance or prove they can cover the cost of any injuries or damage they cause in an accident. Car insurance is the easiest and most common way to meet this requirement, but you can also choose from three alternative forms of coverage.
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California auto insurance requirements
Coverage | Minimum amount |
|---|---|
| Bodily injury liability (BI) | $30,000 per person and $60,000 per accident |
| Property damage liability (PD) | $15,000 per accident |
New California insurance laws
The state of California raised its minimum liability insurance requirements starting Jan. 1, 2025.
The new law increased the amount of bodily injury liability coverage needed to $30,000 per person and $60,000 per accident. This pays for injuries to other drivers and their passengers if you cause an accident.
The property damage liability requirement also increased to $15,000 per accident. This coverage pays for damage to the other driver's car or a building or structure if you hit something. This makes California's requirements among the top 10 highest in the country.
Previously, drivers only needed $15,000 of bodily injury liability coverage per person and $30,000 per accident, along with $5,000 of property damage liability. Up until 2025, California had some of the lowest liability requirements in the country.
Liability coverage in California
All drivers in California must have liability coverage, which pays for injuries or damage you cause in an accident.
Bodily injury liability insurance pays for the other party's medical expenses if you cause an accident.
If you choose the minimum California car insurance requirements, your insurance company will pay up to $30,000 in medical expenses per person and $60,000 per accident.
Property damage liability insurance pays to repair another driver's vehicle or a building or structure if you cause a crash.
If you have the minimum California insurance requirements, your insurance will pay up to $15,000 for damage you cause.
Cheapest companies in California for minimum liability
To find the cheapest minimum liability insurance in California, our editors gathered quotes from nine top companies across 1,824 California ZIP codes. Full methodology.
Does California's minimum liability insurance come with enough coverage?
The minimum limits may not be enough to cover the full medical expenses or damage if you cause a serious accident. Most drivers should choose higher liability limits, if they can afford it.
For example, if you cause a major accident with a brand new Tesla, $15,000 of property damage liability won't be enough to cover the full cost of replacing it. You'll have to pay the difference yourself.
In addition, California car insurance laws don't require collision and comprehensive coverage. These coverages help pay to fix or replace your car after a crash, regardless of whose fault it is.
Most lenders require you to have these coverages if you have a car loan or lease. You should also consider adding them if your car is less than 8 years old or worth more than $5,000.
Recommended auto insurance coverage for California drivers
Liability coverage is required by law in California. But other optional auto insurance coverages can be useful for many drivers.
Alternatives to the California motor vehicle insurance requirements
If you don't want to buy an auto insurance policy, there are three other ways to drive legally in California. However, not every option is available to all drivers.
You can make a cash deposit to cover the other driver's medical bills or car repairs if you cause a car accident.
First, you must deposit $35,000 in a savings account with any bank. Then, you'll contact the DMV Financial Responsibility Unit to fill out and submit an application form. Once it's approved, you must make sure that there's always $35,000 in the account. The DMV will use those funds if you're at fault in a car accident.
You can get a $35,000 surety bond. A surety company issues bonds to drivers that guarantee they'll cover medical bills, car repairs and other property damage if you cause a car accident. If you can't pay these expenses, the surety company will step in — but you'll have to pay them back later.
Contact the California Department of Insurance at 800-927-4357 for a list of licensed surety companies in California that offer this type of bond.
You can get a self-insurance certificate from the California DMV if you own more than 25 vehicles in your name. The certificate states that you can cover medical bills, car repairs and property damage expenses as a minimum liability policy would. Before issuing the certificate, the department may require evidence that you can meet these financial demands.
CLCA program policy
If you can't afford minimum liability insurance in California and you qualify for a policy through California's Low Cost Auto Insurance Program, or CLCA, you can legally buy auto insurance with lower limits.
The CLCA program aims to provide affordable car insurance for safe drivers whose household income falls below federal poverty levels. The minimum coverage limits for drivers with a CLCA policy are:
- Bodily injury liability insurance: $10,000 per person and $20,000 per accident
- Property damage liability insurance: Up to $3,000 per accident
- Uninsured motorist BI*: Up to $10,000 per person and $20,000 per accident
- Medical payments*: Up to $1,000 per person
*These coverages are optional.
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Penalty for driving without insurance in California
If you're caught driving without insurance, you will have to pay fines. Repeat offenders may also have other penalties.
- First offense: A fine between $100 and $200, along with penalty assessment fees of $26 per $10 of the base fine. For example, if you're fined $100, your penalty assessment fee will be $260.
- Two or more offenses: A fine of $200 to $500, plus penalty assessment fees.
- Other potential penalties: Your license and registration may be suspended, which means you won't be able to drive for a period of time. In addition, you'll have to pay fees to get your license and registration reinstated, and you could be required to file an SR-22 certificate.
Frequently asked questions
Do you need car insurance in California?
Most people in California need car insurance. There are a few alternatives to buying car insurance, including a surety bond, a certificate of self-insurance from the DMV or a cash deposit. However, these options may not be practical or affordable for many people.
What is the minimum auto insurance in California in 2025?
On Jan. 1, 2025, the state of California raised its minimum requirements for car insurance to $30,000 of bodily injury liability coverage per person and $60,000 per accident, along with $15,000 in property damage coverage
Is uninsured motorist coverage required in California?
No, California does not require uninsured or underinsured motorist liability coverage. However, it's a good idea to have this coverage because it protects you and your car if you're in an accident with a driver who doesn't have any or enough insurance.
Is California a no-fault state?
California is not a no-fault insurance state. This means California drivers don't need to get personal injury protection (PIP) coverage. Drivers in no-fault states also have a limited ability to sue other drivers over damages.
Methodology
ValuePenguin editors collected rates from nine top companies across all residential CA ZIP codes to find the cheapest quotes that meet the California drivers' insurance requirements. Rates are for a 30-year-old man with a good credit score and a clean driving record who owns a 2015 Honda Civic EX.
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only. Your own quotes may be different.
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.