Car Insurance Requirements in California (2025)

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 $94 per month for liability-only car insurance.

On top of meeting minimum car insurance requirements, drivers in California have the option to purchase more insurance for a greater level of financial protection, 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.

California car insurance requirements

The minimum limits in California increased on Jan. 1, 2025.1 The state’s new current minimum coverage levels are 30/60/15.2

The table below reflects this change and the types and amount of coverage all drivers need to carry:

You can forgo the state’s auto insurance requirement if you make a cash deposit of $75,000 with the DMV, receive a DMV-issued certificate of self-insurance, or provide a surety bond for $75,000 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 $30,000 per person and $60,000 per accident in bodily injury liability coverage.

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 $30,000 per person and $60,000 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 $15,000 in property damage liability coverage. 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 vehicle.3

If you want help repairing your vehicle after an at-fault accident or non-collision incident, consider a full-coverage policy. Full-coverage car insurance includes collision coverage and comprehensive coverage, which pay for damage to your vehicle after a covered incident.

California Low Cost Auto Insurance program

California offers a more affordable option to some drivers: California’s 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 annual 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 out-of-pocket expenses following an accident.

If you cause an accident and the other drivers have $20,000 in vehicle damage, your minimum liability insurance can only pay $15,000 toward their property damage. You’ll have to pay the remaining $5,000 out of pocket — on top of any of your medical bills and 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 financial protection.

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

Cheapest liability-only car insurance in California

California drivers pay an average of $94 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 California.

Cheapest full-coverage car insurance in California

A full-coverage car insurance policy costs an average of $206 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 vehicle.

The table below breaks down the average full-coverage insurance costs by companies in the state.

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.

California car insurance requirements FAQs