California Auto Insurance Requirements + Minimums 2025

California is one of many states that require drivers to carry insurance to cover the costs of damages and injuries to others in a car accident. In 2025, the state requires drivers to carry a minimum of $30,000 for bodily injury liability insurance per person, $60,000 for bodily injury liability insurance per accident, and $15,000 for property damage liability insurance. This coverage is known as 30/60/15 coverage, and California updated its policy for 2025 to at least double each of these minimums. In 2024, drivers were required to have 15/30/5 coverage.

You can also decide to carry more than state-minimum liability insurance. Drivers may want to consider adding extra coverage, such as uninsured/underinsured motorist coverage, which helps pay for damages and injuries caused by uninsured or underinsured drivers.

Let's dive into the other California auto insurance requirements and look at the penalties drivers might meet if they don't carry the right insurance.

California insurance requirements

Every California driver has to be able to show proof that they have insurance whenever they're driving.

The four types of insurance that meet California's requirements and serve as sufficient proof of coverage include:

• Motor vehicle liability insurance policy: A liability insurance policy can help pay the costs associated with injuring someone or damaging their vehicle in an accident. It's meant to cover accidents that you're found to be at fault for. This is the type of policy you'd take out with a car insurance company.
• Cash deposit of $70,000 with the Department of Motor Vehicles (DMV): Insurance proves that you can handle financial expenses due to an accident. If you really don't want to sign up for insurance, a cash deposit of $70,000 offers the same level of proof (this requirement was previously $35,000).
• DMV-issued self-insurance certificate: If you can prove that you have the financial means to be labeled "self-insured," you can get a certificate from the DMV that you can use as proof of insurance.
• Surety bond for $75,000: If you can't provide a cash deposit of $70,000, you can work with a company that can offer surety that they'll pay in the event of an accident. The company must be licensed to do business in California, and the price you pay for a surety bond depends on your credit and income. (The minimum for this was previously $35,000.)

Liability insurance is a type of insurance coverage that helps cover other drivers and their vehicles if you cause an accident. All the states that require insurance policies will require liability in some form (New Hampshire is the only state that doesn't require car insurance).

Minimum liability requirements

California car insurance laws require what's known as 30/60/15 coverage. This means that drivers must have the following coverage limits at a minimum:

• $30,000 for injury or death to one person
• $60,000 for injury or death to more than one person
• $15,000 for damage to property

This is the bare minimum insurance Californians need. These amounts mean you have to have a policy for up to $30,000 of bodily injury liability coverage for the bills associated with injuring another driver or their passenger while on the road. If you injure more than one person, you have to have enough coverage to cover $60,000 worth of costs. You'll also have $15,000 of property damage liability coverage to help with costs associated with any damage you do to another driver's vehicle or property.

Maryland is another state that requires this amount of liability coverage, but many other states require 25/50/25.

What happens if you drive without insurance in California?

Driving without insurance in California is a punishable offense, just as it is in many states. The consequences depend on the number of times you've committed an offense.

• First offense: For the first offense, the driver will receive a citation, be fined, and may have their vehicle registration suspended. The fine for a first offense is a minimum of $100.
• Subsequent offenses: The driver will be fined a minimum of $200 and up to $500. Additionally, the vehicle may be impounded, and the driver may be required to provide proof of insurance before the vehicle is released.
• Accidents: If you're in a collision and your vehicle isn't insured, you can have your license suspended for up to four years.

If your vehicle is impounded, you may also have to pay towing and storage fees in addition to the fines and costs associated with starting or reinstating an insurance policy.

California Low Cost Automobile (CLCA) Insurance Program

Although there are car insurance coverage minimums in place, the California government understands that not every driver can handle the financial obligation of meeting these minimums. So California has a program — the Low Cost Automobile Insurance Program — that helps low-income drivers stay on the road legally. 

It provides the following basic coverage: 

• $10,000 bodily injury or death per person
• $20,000 bodily injury or death per accident
• $3,000 property damage per accident

Despite California minimum insurance increases for 2025, CLCA limits have not changed.

How to qualify

To qualify for the program, drivers need to meet certain requirements regarding income and the vehicle they drive. These are:

• Your annual income is below the maximum for a household of your size.
  • You can use the CLCA site's Income Eligibility tool to see if you qualify. The threshold is $39,125 for a household of one person, $52,875 for a household of two, $66,625 for a household of three, and $80,375 for a household of four.
• Your car must be worth $25,000 or less.
• You must have a valid California driver's license.
• You must be at least 16 years old.
• You must have a good driving record or be a newer driver.

For more information on the program, visit www.mylowcostauto.com.

Other types of coverage to consider

State minimum requirements are a way to cover basic costs associated with getting into an accident, but having just liability won't do much for you if you cause an accident. We suggest considering additional types of coverage for your policy.

Comprehensive

Comprehensive coverage helps to cover damage to your vehicle caused by something other than a collision. This can include theft, vandalism, tree damage, and fire, among other types of damage. This coverage is especially important for drivers who live in areas prone to natural disasters.

Collision

Collision coverage helps pay for any damage to your vehicle caused by an accident, even if you're at fault. It can help cover the difference between the other driver's liability coverage and the cost of the damage done to your vehicle if you're not at fault.

Uninsured/Underinsured motorist coverage

Uninsured motorist coverage and underinsured motorist coverage help cover the costs involved in an accident with someone who does not have insurance, or with someone who does not have enough insurance to cover the costs of the accident.

GAP insurance

GAP insurance (guaranteed asset protection) is an optional type of coverage that ensures that a driver is reimbursed for the difference between the car's actual cash value (ACV) and the amount still owed on the vehicle loan if the car is a total loss. GAP insurance is particularly useful in California, where car values can quickly depreciate due to the state's weather and traffic conditions.

Medical payments

Medical payment coverage helps pay for any medical expenses you or your passengers incur due to an accident, regardless of who was at fault.

FAQs

Bottom line

California minimum car insurance requirements and other auto insurance laws are designed to protect drivers and ensure that all motorists on the road are properly insured. Failure to comply with these laws can result in hefty fines and even the suspension of a driver's license.

By understanding these laws, drivers in California can ensure they're properly insured and protected. To make sure you're getting the best deal, get a few quotes from a few of the best car insurance companies in California.