California State Minimum Insurance Coverage

What is an Auto Insurance Liability Limit?

Liability car insurance protects you financially if you are found to be at fault for an accident. When you purchase car insurance, you select a bodily injury liability limit that is broken down by the amount of coverage your insurance company will pay out to one person you may injure in an accident that you cause and carries a maximum limit that the carrier will pay out for injuries for the overall claim. In addition, you will select a property damage liability coverage limit, which is the maximum your insurance company will pay to repair or replace the other driver's vehicle or other property you may damage in a crash.

California Minimum Car Insurance Requirements

California requires drivers to carry a minimum amount of car insurance on any vehicles registered in the state, which includes bodily injury liability coverage and property damage liability coverage. The required split liability limit in California currently looks like this: 15/30/5. Suppose you cause an accident and injure the other driver, their passengers, or a pedestrian. In that case, with a 15/30/5 limit on your car insurance, your auto insurance company will pay no more than $15,000 to any one person and no more than $30,000 for total injuries caused by the accident. It will pay no more than $5,000 to fix the other driver's vehicle or other property you may damage, such as a telephone pole, house, or fence. You must carry at least this amount of liability coverage on your auto policy in order to legally drive in the State of California.

The minimum liability insurance in California is often not enough coverage to fully protect you or your assets if you are found to be at fault in an accident. Because of this, the State of California will increase the minimum required liability insurance for drivers in the state to 30/60/15 as of January 1, 2025. This higher requirement will mean that your car insurance company will pay no more than $30,000 to any one person and no more than $60,000 for total injuries caused by an accident that is your fault. It will pay no more than $15,000 to fix the other driver's vehicle or other property you may damage. You can read the full details of the changes to the minimum auto insurance coverage requirements taking effect in California as of January 1, 2025 here.

Why is California Increasing the Minimum Auto Insurance Requirements?

Because California is home to more than 27,000,000 drivers, accidents are a common occurrence in the state. The cost to repair a vehicle and the cost of medical expenses has sky-rocketed over the past few decades and the current minimum California car insurance is often not sufficient to cover the injuries and damage resulting from many of the accidents that occur. When your auto insurance isn't enough to cover the injuries and damages that you cause in an accident, you may become financially responsible for the additional cost of those injuries and damages out of your own pocket. By raising the minimum coverage requirements in the state, California is helping drivers to be better protected and to avoid financial devastation after a serious motor vehicle accident.

Is There an Alternative to Buying Liability Insurance in California?

Apart from a car insurance policy, three other acceptable forms in California can prove you’re financially responsible. These include a cash deposit of $35,000 paid to the Department of Motor Vehicles (DMV), a certificate of self-insurance from the DMV, or a surety bond. Car insurance is the easiest way to meet the financial responsibility requirement, but you can choose an alternative form of coverage.

If you opt to utilize one of these alternative options to prove your financial responsibility in the State of California rather than purchasing a car insurance policy, note that the required cash deposit will be raised from $35,000 to $75,000 as of January 1, 2025.

Penalties for Driving Without Insurance in California

If you’re found guilty of driving without insurance in California, you will have to pay fines and potentially deal with other penalties if you are a repeat offender. The cost of a ticket for driving without insurance in California depends on whether it’s your first violation or a repeat offense. Drivers with a first-time offense can expect to pay a hefty fine, whereas repeat offenders face even steeper penalties, including jail time, the impounding of their vehicle, and possible suspension of their vehicle registration and driver's license.

Is Minimum Liability Auto Insurance Coverage Enough?

Even with the changes to the minimum auto insurance coverage requirements for bodily injury liability and property damage liability insurance in California that will take effect on January 1, 2025, the minimum required amount of coverage may still not be enough to financially protect you if you get into a serious accident. Suppose you get into an accident in which you rear-end a $100,000 car with four people in it that are injured in the accident. At the higher required limits in California, your car insurance company will pay no more than $30,000 to each of the people injured in the vehicle and no more than $60,000 for the total injuries those people suffer in the accident. In addition, your car insurance will only pay $15,000 toward the repair of the car that you damaged. In a situation like this, the minimum liability insurance requirement of 30/60/15 could leave you with a hefty amount to pay out of pocket after the accident. Consider purchasing as much coverage for liability and property damage as you can afford to ensure you are well-protected in an accident while driving on California's roads.

Optional Add-On Coverages in California

If you purchase only liability and property damage coverage, your injuries and those of your passengers and the damage to your car are not covered when you are in an accident. In California, optional add-on coverages include collision, comprehensive, uninsured/underinsured motorist, and medical payments. These coverages can protect drivers financially from various scenarios like accidents, theft, or personal injury. Collision coverage pays for damages to your vehicle if you are involved in an accident with another car or an object, regardless of who is at fault. Comprehensive coverage pays for damage to your vehicle that is not caused by a collision, including fire, theft, or vandalism. Uninsured/Underinsured Motorist (UM) coverage will pay for your and your passenger's injuries if the other driver is at fault but does not have insurance or enough insurance to cover your injuries. Medical payment coverage will cover your and your passengers' injuries up to a set policy limit, regardless of who is at fault in the accident.

Carrying as much liability coverage as you can afford is a smart idea. You should also carry high coverage amounts of other insurance types, such as medical payments and collision coverage. This way, you can protect yourself if you cause serious damage to another party, are injured, or if your car is damaged in a crash.

California Minimum Insurance FAQs

Q: What is California's minimum required auto insurance coverage?

A: Currently, California requires that all drivers carry at least $15,000 per person $30,000 per accident for bodily injury liability coverage, and $5,000 for property damage coverage. This requirement will be raised to $30,000 per person $60,000 per accident for bodily injury coverage, and $15,000 for property damage coverage as of January 1, 2025.

Q: Is purchasing a car insurance policy the only way I can prove financial responsibility in the State of California?

A: No. Apart from a car insurance policy, three other acceptable forms in California can prove you’re financially responsible. These include a cash deposit paid to the Department of Motor Vehicles (DMV), a certificate of self-insurance from the DMV, or a surety bond.

Q: Does liability insurance cover my car if it's damaged in an accident?

A: No, liability insurance only covers other drivers and their vehicles on the road if you injure them or damage their property in an accident. To cover the damages to your vehicle in a collision, you must carry collision coverage on your car.