To drive legally in California, you must carry auto liability insurance that meets the state’s minimum coverage limits, and since January 1, 2025, those limits have been $30,000 per person and $60,000 per accident for bodily injury, plus $15,000 for property damage.1California Legislative Information. California Vehicle Code 16056 California car insurance requirements apply to every driver and every registered vehicle, with a small set of approved alternatives to a traditional policy. Skip coverage and you’re looking at fines that multiply quickly, a suspended license, and a suspended registration.
Minimum Liability Limits
For any policy issued or renewed on or after January 1, 2025, the required liability limits are:1California Legislative Information. California Vehicle Code 16056
- $30,000 for bodily injury or death of one person in a single accident
- $60,000 for bodily injury or death of two or more people in a single accident
- $15,000 for damage to another person’s property
These figures replaced the old 15/30/5 minimums that had been in place for decades. If your policy predates January 2025 and hasn’t been renewed yet, the old limits technically still apply until renewal, but virtually all active policies have cycled through at least one renewal by now.
These are liability-only floors. They pay injured third parties when you’re at fault. They do not cover your own medical bills, your own vehicle repairs, or anything beyond the per-person and per-accident caps. Many drivers carry limits well above the minimums to protect personal assets from a lawsuit, but 30/60/15 is the legal baseline.
Uninsured and Underinsured Motorist Coverage
California insurers must include uninsured motorist coverage in every bodily injury liability policy they sell, unless you specifically decline it in writing.2California Legislative Information. California Insurance Code 11580.2 The coverage pays for your injuries when the at-fault driver has no insurance or not enough of it. Your insurer must offer uninsured motorist limits equal to your bodily injury liability limits, though the law caps the required offer at $30,000 per person and $60,000 per accident.
Underinsured motorist coverage is offered alongside it as a single combined product.2California Legislative Information. California Insurance Code 11580.2 If you never signed a written waiver turning it down, your policy already includes this protection at limits matching your liability coverage. Roughly one in seven California drivers is uninsured, so the coverage fills a real gap.
Alternatives to a Standard Policy
A traditional insurance policy is how most people meet the requirement, but California law recognizes three other methods.3California Legislative Information. California Vehicle Code 16021
You can deposit cash with the DMV in the amount specified by Vehicle Code Section 16056, which tracks the current minimum liability limits.4California Legislative Information. California Vehicle Code 16054.2 The money stays with the state and guarantees payment if you’re found liable in an accident. You can also post a surety bond from a company licensed in California, again in an amount tied to the Section 16056 minimums. And businesses with more than 25 registered vehicles can apply to the DMV for a certificate of self-insurance, which the department grants after reviewing financial statements.5California Legislative Information. California Vehicle Code 16053
In practice, these options appeal mainly to commercial fleets or to drivers who can’t get standard coverage. Tying up tens of thousands of dollars with the state is a poor use of capital for most people, and surety bonds still carry annual premiums.
California Low Cost Automobile Insurance Program
The California Low Cost Automobile Insurance Program, known as CLCA, lets lower-income drivers meet the state’s insurance requirement at reduced premiums. To qualify, you need a valid California driver’s license, must be at least 16 years old, and must own a vehicle valued at $25,000 or less.6CA.gov. California Low Cost Auto Household income limits also apply and vary by family size; those thresholds are updated periodically, so check the program’s website for current figures.
CLCA policies carry lower liability limits than the standard minimums: $10,000 per person for bodily injury, $20,000 per accident, and $3,000 for property damage. These limits sit below the regular 30/60/15 floor but are legally recognized as meeting the financial responsibility requirement for program participants. The tradeoff is real. $3,000 in property damage coverage will not come close to covering a modern vehicle repair, and any excess falls on you personally.
Rideshare Driver Requirements
If you drive for a transportation network company like Uber or Lyft, your personal auto policy almost certainly excludes coverage while you’re logged into the app. California requires TNCs to maintain insurance across three periods, with amounts set by the California Public Utilities Commission:7California Public Utilities Commission. Insurance Requirements for TNCs
- Period 1, app on and waiting for a ride request: at least $50,000 per person and $100,000 per accident for bodily injury, $30,000 for property damage, plus $200,000 in excess coverage per occurrence.
- Periods 2 and 3, matched with a rider through drop-off: $1,000,000 in primary commercial liability.
- Period 3, passenger in the vehicle: an additional $1,000,000 in uninsured and underinsured motorist coverage.
The TNC typically provides this coverage through its own commercial policy, but gaps can appear. If a delivery app has different insurance arrangements, or the TNC’s coverage does not attach the moment you go online, your personal policy will not backstop you. Many rideshare drivers buy a rideshare endorsement from their personal insurer to close the gap.
Proof of Insurance
You must have evidence of financial responsibility in the vehicle whenever you’re driving.8California Department of Motor Vehicles. Financial Responsibility (Insurance) The most common form is your insurer’s identification card. California allows you to show proof on a mobile device, so pulling up your insurer’s app or a photo of the card counts.9California Legislative Information. California Vehicle Code 16028 An officer who views your phone is legally prohibited from looking at anything else on the device, and you assume the risk if the phone is damaged while in the officer’s hands.
Officers can ask for proof during any traffic stop where they issue a citation, or at the scene of an accident, but they cannot pull you over solely to check your insurance status.9California Legislative Information. California Vehicle Code 16028 The DMV also verifies coverage when you renew your vehicle registration.
Penalties for Driving Without Insurance
Driving without valid insurance is an infraction. The base fine for a first offense is $100 to $200, but California’s penalty assessments push the real cost much higher.10California Legislative Information. California Vehicle Code 16029 State law adds $27 in surcharges for every $10 of base fine, plus a 20% state surcharge, a $40 court security fee, a $35 infraction assessment, and a $10 administrative fee.11Superior Court of California, County of Amador. Penalty Assessment A $100 base fine turns into roughly $475. A $200 base fine lands closer to $865.
A second or subsequent conviction within three years carries a base fine of $200 to $500, and the same multipliers apply, putting the realistic total well into four figures.10California Legislative Information. California Vehicle Code 16029 Your vehicle can also be impounded at the scene.
License and Registration Suspension
The DMV can suspend your vehicle registration if you let your insurance lapse. Reinstatement requires paying a fee and providing proof of new coverage.12California Department of Motor Vehicles. Suspended Registration Reinstatement If your license is suspended for an insurance-related violation, you’ll need to file a California Insurance Proof Certificate, commonly called an SR-22, and maintain it for three years. An SR-22 is not a separate policy. It’s a form your insurer files with the DMV certifying that you carry at least the minimum coverage. Insurers typically charge $15 to $50 for the filing itself, but the real cost is the higher premiums that come with being classified as a high-risk driver during those three years.
Add up the fines, surcharges, impound fees, elevated premiums, and SR-22 filing costs, and a single uninsured stop can run several thousand dollars over the next few years. Carrying even a bare-minimum policy is almost always the cheaper path.