What Is the Minimum Car Insurance Requirement in California?

If you’re wondering how much car insurance you need in California, the state’s Department of Insurance gives the minimum allowable coverage limit. The minimum car insurance requirement in California is 15/30/5, which is much lower than most other states. It means your policy should have at least the following:

  • $15,000 for bodily injury liability per person
  • $30,000 for bodily injury liability per accident
  • $5,000 for property damage liability per accident

Having car insurance provides you with protection while on the road, especially if you get into an accident. Driving without insurance is also illegal in California. Your inability to show proof of insurance during a traffic stop may result in various penalties. These may range from being fined to having your license and registration suspended or worse.

If you’re a low-income driver, you can acquire low-cost insurance under the California Low Cost Auto (CLCA) program. The minimum coverage requirement is 10/20/3. This means:

  • $10,000 for bodily injury liability per person
  • $20,000 for bodily injury liability per accident
  • $3,000 for property damage liability per accident
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What Does This Minimum Coverage Mean?

Since California is an at-fault state, it means you’re liable for the other driver’s expenses from medical bills or property repairs if you cause an accident. A policy meeting California’s minimum car insurance requirement of 15/30/5 means that it covers medical expenses up to $30,000 for all individuals who sustain injuries in an accident, with a cap of $15,000 per person. It also helps with costs from property damage up to $5,000.

Realistically, being at fault for an accident may result in expenses much higher than what a policy meeting California’s minimum car insurance requirement covers. It means you’ll have to cover the remaining amount out of your pocket, which could severely deplete your savings.

A low-cost policy from CLCA follows the same format. Having 10/20/3 liability limits means you’re protected against costs up to $20,000 from injuries sustained in an accident, with a $10,000 cap for each person. Property damages up to $3,000 are also covered.

How Much Does the Minimum Car Insurance Cost in California?

The cost of car insurance in California is, on average, $1,429 per year. California does not allow insurers to use several common rating factors to price coverage, including credit history, gender and ZIP code. They use other factors, such as your age, driving record, claims history and the city where you live to set rates.

It’s best to compare quotes from several providers since they offer different rates for policies with similar coverages. Progressive offers the most affordable liability-only policy in California meeting the state's minimum car insurance requirements for $481 per year.

These prices are only estimates based on rates for an average California driver and should not be used to compare insurance prices.

The rates above are for a 40-year-old driver residing in California with a clean record driving a 2010 Toyota Camry. All premiums are for policies meeting California’s minimum car insurance requirements of 15/30/5.

If you're instead looking for a policy that balances quality with affordability, MoneyGeek also ranked the top car insurance companies in California.

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What Is the Minimum Car Insurance Requirement in California While Leasing a Car?

It's the lender, not the state, that determines insurance requirements for car leases in California. Even if your policy’s limits meet California’s minimum car insurance requirements, they may not be enough for your leasing company.

Most lenders would require you to carry full coverage car insurance with increased liability limits of at least 100/300/50. If you want to know the specific requirements of your leasing company, it's best to get in touch with them directly. This way you’ll know detailed information about topics like insurance requirements and payment terms.

When determining how much car insurance you need in California, the minimum liability requirements aren’t the only thing you should consider. MoneyGeek recommends increasing your limits to at least 50/100/50. It may increase your rate, but it provides you with more financial protection from at-fault accidents and other vehicle-related incidents.

Although car insurance is required in California, around 17% of its drivers remain uninsured, according to 2022 data from the Insurance Information Institute (Triple-I). The likelihood of getting into a collision with an uninsured driver is relatively high — if they are at fault, they have no coverage to pay your damages. It makes purchasing uninsured/underinsured motorist insurance a good investment despite not being included in California’s car insurance requirements, but every insurer in California must offer these coverages.

Penalties for Driving Without Car Insurance in California

You need car insurance in California if you want to drive legally on the state’s roads and highways. Failure to show proof of financial responsibility may result in various penalties, such as:

  • Fines of $100–200 plus penalty assessments for the first offense
  • Fines of $200–500 plus penalty assessments for subsequent offenses
  • The possibility of vehicle impoundment
  • Suspension of vehicle registration
  • License suspension of four years if after a collision (may be reinstated after one year if you provide proof of insurance to the DMV)

To get your license reinstated, you'll have to purchase insurance from a carrier that provides coverage for SR-22 drivers and hold it for an average of three years. An SR-22 California Proof of Insurance Certificate labels you as a high-risk driver, which typically results in higher premiums and fewer options for coverage.

Frequently Asked Questions About Car Insurance in California

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About Mark Fitzpatrick


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Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.


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