California Auto Insurance Requirements: Minimum Coverage (2025)

Quick Answer: California Minimum Auto Insurance

California requires all drivers to carry liability insurance. The state-mandated minimums are:

This is commonly written as 15/30/5. California does not require collision, comprehensive, uninsured motorist, or medical payments coverage—but that doesn't mean you shouldn't have them.

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What California Law Actually Requires

Under California Vehicle Code Section 16029, all drivers must:

1. Maintain liability insurance meeting minimum requirements
2. Carry proof of insurance at all times while driving
3. Provide insurance information at traffic stops and accidents
4. Report insurance to the DMV (insurers do this automatically)

Understanding 15/30/5 Coverage

Bodily Injury Liability - $15,000/$30,000

This covers injuries you cause to other people:

• $15,000 maximum per injured person
• $30,000 maximum per accident (total for all injured people)
• Pays for medical bills, lost wages, pain and suffering
• Does NOT cover your own injuries

Property Damage Liability - $5,000

This covers damage you cause to others' property:

• Other vehicles you hit
• Buildings, fences, mailboxes
• Other personal property
• Does NOT cover damage to your own vehicle

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Why California's Minimums Aren't Enough

California has some of the lowest minimum requirements in the country, and they're dangerously inadequate:

Real-World Cost Comparison

What Happens When Minimums Aren't Enough

If you cause an accident with damages exceeding your coverage:

1. Your insurance pays up to the policy limit
2. You're personally liable for the remaining amount
3. The injured party can sue you
4. Your wages can be garnished
5. Your assets can be seized
6. Judgments can follow you for years

Example: You cause an accident injuring two people with $40,000 in combined medical bills and totaling a $35,000 car.

• Total damages: $75,000
• Your 15/30/5 coverage pays: $35,000 max
• You owe: $40,000 out of pocket

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Penalties for Driving Uninsured in California

California takes uninsured driving seriously:

First Offense

Second Offense (within 3 years)

If You Cause an Accident While Uninsured

DMV Penalties

The DMV monitors insurance status electronically:

• Insurance lapse triggers automatic notice
• Registration suspension if no response within 45 days
• $14 reinstatement fee per suspended vehicle
• Must provide proof of insurance to reinstate

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Recommended Coverage for California Drivers

Insurance experts recommend these coverage levels for California:

Minimum Recommended: 50/100/50

Better Protection: 100/300/100

Additional Coverages to Consider

Uninsured/Underinsured Motorist (UM/UIM)

• Protects you when hit by uninsured drivers
• ~15% of California drivers are uninsured
• Covers your injuries and vehicle damage
• Highly recommended

Medical Payments (MedPay)

• Covers your medical bills regardless of fault
• Pays quickly without waiting for claims
• Typically $1,000 - $10,000 limits

Collision Coverage

• Pays to repair your car after accidents
• Required if you have a car loan
• Subject to deductible ($250-$1,000)

Comprehensive Coverage

• Covers theft, vandalism, weather, animals
• Required if you have a car loan
• Subject to deductible

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California-Specific Insurance Rules

Proof of Insurance Requirements

You must be able to show proof of insurance:

• At traffic stops
• At accidents
• At DMV registration renewal
• At vehicle inspection

Acceptable proof:

• Insurance card (paper or digital)
• Insurance policy declarations page
• Insurance binder

California accepts digital proof - you can show insurance cards on your phone.

Electronic Insurance Reporting

California uses an electronic verification system:

• Insurers report your coverage status to the DMV
• If coverage lapses, DMV is notified automatically
• You'll receive a warning letter
• Must respond within 45 days or face suspension

Low-Cost Auto Insurance Program (CLCA)

California offers a program for low-income drivers:

Eligibility:

• Income at or below 250% of federal poverty level
• Valid California driver's license
• Vehicle valued at $25,000 or less
• No DUI in past 10 years
• Good driving record

Coverage provided:

• Bodily Injury: $10,000 / $20,000
• Property Damage: $3,000

Cost: Approximately $338-$611 per year depending on county

Note: CLCA coverage is below state minimums but is legal for program participants.

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SR-22 Requirements in California

Some drivers must file an SR-22 certificate:

When SR-22 Is Required

• DUI/DWI conviction
• Driving without insurance (accident involved)
• Too many points on driving record
• Driving with suspended license
• At-fault accident while uninsured

SR-22 Requirements

How to Get SR-22

1. Contact an insurance company that offers SR-22
2. Purchase or modify a policy meeting minimums
3. Insurer files SR-22 electronically with DMV
4. Pay any reinstatement fees to DMV
5. Maintain continuous coverage for required period

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How Much Does California Auto Insurance Cost?

Average annual premiums in California:

Factors affecting your rate:

• Age and driving experience
• Driving record (accidents, tickets)
• Location (LA is more expensive than rural areas)
• Vehicle type and value
• Credit history (limited use in CA)
• Annual mileage
• Coverage levels and deductibles

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Frequently Asked Questions

Is car insurance required in California?

Yes. California law requires all drivers to carry minimum liability insurance of 15/30/5. Driving without insurance is illegal and results in fines, fees, and potential license suspension.

Can I drive in California with out-of-state insurance?

Yes, if you're visiting. Your out-of-state policy covers you temporarily. However, if you become a California resident, you must obtain California insurance within 20 days of establishing residency or registering your vehicle.

Does California require uninsured motorist coverage?

No, UM/UIM coverage is not required by law. However, insurers must offer it, and you must sign a waiver if you decline. Given that ~15% of California drivers are uninsured, UM coverage is strongly recommended.

What happens if I let my insurance lapse?

The DMV is notified electronically within days. You'll receive a warning letter requiring proof of insurance within 45 days. If you don't respond, your vehicle registration is suspended. Reinstatement requires proof of insurance and a $14 fee per vehicle.

Does California have no-fault insurance?

No. California is an "at-fault" (tort) state. The driver who causes an accident is responsible for damages. Their insurance pays claims from injured parties.

How do I get insurance with a bad driving record?

Options include:

• Non-standard insurers (higher rates, more flexible)
• California Automobile Assigned Risk Plan (CAARP)
• SR-22 specialists
• Shopping around—rates vary significantly between companies

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Key Takeaways

• California requires 15/30/5 minimum liability coverage
• State minimums are inadequate for most real-world accidents
• Recommended coverage: At least 50/100/50 with UM/UIM
• Driving uninsured results in fines, suspension, and personal liability
• DMV monitors insurance electronically—lapses are caught quickly
• Low-income drivers may qualify for CLCA program
• SR-22 required for DUI, uninsured accidents, and license suspensions

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Important Disclaimer

This guide provides general information about California auto insurance requirements based on publicly available sources. This is not legal or insurance advice. Requirements and laws can change. Always verify current requirements with the California DMV and Department of Insurance.

Consult with a licensed insurance professional for advice specific to your situation.

Last verified: November 2025

Sources: California DMV, California Vehicle Code, California Department of Insurance