California car insurance requirements and laws

Minimum car insurance requirements

California raised its minimum liability limits for the first time in decades on January 1, 2025. Every policy issued or renewed since then must carry at least 30/60/15, up from 15/30/5 (Vehicle Code § 16056, as amended by SB 1107). The same law schedules a second increase: policies issued or renewed on or after January 1, 2035 must carry 50/100/25. Use the state car insurance requirements lookup to compare states, and see California car insurance: costs, Prop 103 and the 2025 minimums for what the change means for prices.

What the minimums mean in practice. If you cause a crash and one person's medical bills and lost wages total $45,000, a 30/60/15 policy pays $30,000 and the remaining $15,000 can be pursued from you. If you hit a late-model sedan and the repair estimate is $22,000, your $15,000 property damage limit leaves you owing $7,000. The California Department of Insurance describes these limits as a legal minimum, and most drivers with assets or a steady income carry far more. how much liability coverage do you need? and the How much car insurance do I need? can help.

Fault system and what it means after a crash

California is an at-fault state. The driver who caused the crash, through their liability insurer, pays for the other side's injuries and property damage. You can claim against that insurer, use your own collision coverage and let your insurer recover the cost (subrogation explained: how your insurer recovers your deductible), or sue. See no-fault vs at-fault states.

California follows pure comparative negligence, adopted by the state Supreme Court in Li v. Yellow Cab Co. (1975). Your damages are cut by your percentage of fault but never eliminated; a driver 70% at fault can still recover 30% of their losses. Under Department of Insurance rules described on its consumer guide, an insurer can surcharge your premium for an accident only if you were at least 51% at fault.

Lawsuits for personal injury generally must be filed within two years, and property damage suits within three. See statutes of limitations for car accident claims.

Optional coverage worth considering here

• Uninsured/underinsured motorist. Insurers must offer it, and you must sign a waiver to decline. UM bodily injury limits match your liability limits. The Insurance Research Council estimates about 20.4% of California drivers were uninsured in 2023, well above the national 15.4%, so this coverage matters more here than in most states. See uninsured and underinsured motorist coverage explained.
• Uninsured motorist property damage. Pays up to $3,500 for damage to your car when an identified uninsured driver is at fault. It is most useful if you do not carry collision; see uninsured motorist property damage.
• Collision deductible waiver. Covers your collision deductible when an uninsured driver hits you (collision deductible waiver).
• Comprehensive. Wildfire, flooding, theft and catalytic converter theft are comprehensive claims (catalytic converter theft and your insurance, comprehensive coverage explained).
• Medical payments. medical payments coverage pays your household's medical bills up to a set limit, regardless of fault.

What drives rates in California

The NAIC puts California's average annual expenditure at $1,223 in 2023, slightly below the national average of $1,282. NAIC notes that California's 2022 and 2023 figures are preliminary, and averages do not predict any individual quote (What NAIC auto insurance data measures).

California's rate system is shaped by California Proposition 103 explained, which requires insurers to get rates approved before using them and to price mainly on your driving record, annual mileage and years of driving experience. Prop 103 also guarantees a Good Driver Discount of at least 20% to qualifying drivers. Upward pressure comes from dense traffic in Los Angeles and the Bay Area, high repair and medical costs, vehicle theft, wildfire losses and a large uninsured population. The 2025 minimum-limit increase raised costs mainly for drivers who had been carrying the old 15/30/5 floor.

Penalties for driving uninsured

Driving without proof of financial responsibility is an infraction under Vehicle Code § 16029. A first conviction brings a fine of $100 to $200 plus penalty assessments, which multiply the total substantially. A second conviction within three years raises the fine to $200 to $500 plus assessments, and a court may order the vehicle impounded. An uninsured driver in a crash also risks license suspension and personal liability for the damage. See penalties for driving without insurance.

SR-22 and high-risk drivers

The California DMV requires an SR-22, proof of insurance filed by your insurer, after events such as a DUI conviction, driving uninsured in a crash or certain license suspensions. The DMV sets the filing period for your case. SR-22 insurance explained covers the mechanics and Car insurance after a DUI covers pricing after a DUI.

Drivers who cannot buy coverage in the regular market can apply to the California Automobile Assigned Risk Plan (CAARP) at 800-622-0954 (assigned risk plans: insurance of last resort). Income-eligible drivers with good records can apply to the California Low Cost Automobile Insurance Program at mylowcostauto.com or 866-602-8861; premiums vary by county, there is no broker fee and AB 60 licenses are accepted (state low-cost auto insurance programs).

Insurers with a strong presence in California

Several large carriers are based in California: Farmers Insurance, Mercury Insurance, AAA (AAA in Northern California), AAA (AAA in Southern California) and California Casualty, which focuses on educators, public safety workers and other affinity groups. National leaders State Farm, GEICO and Progressive also write large volumes here. Because Prop 103 makes every insurer file its own approved rating plan, prices for the same driver can differ widely, so quoting several companies is worthwhile (how to compare car insurance quotes apples to apples).

Where to get help

The California Department of Insurance runs a consumer hotline at 800-927-4357 (TTY 800-482-4833) and accepts complaints, called requests for assistance, online at insurance.ca.gov. It can help with claim denials, delays, cancellations and nonrenewals. Its Los Angeles headquarters is at 300 South Spring Street, 14th Floor, Los Angeles, CA 90013. See how to file a complaint against a car insurance company. License, registration and SR-22 matters go to the DMV, and injury disputes to a licensed California attorney.