California Car Insurance Requirements: Minimums, Fault Rules & Penalties
Minimum liability requirements
California raised its minimum liability limits on January 1, 2025 — the first increase since 1967.
| Coverage | Minimum limit |
|---|---|
| Bodily injury per person | $30,000 |
| Bodily injury per accident | $60,000 |
| Property damage per accident | $15,000 |
These minimums apply to all registered vehicles. Insurers selling policies in California are required to offer uninsured motorist coverage at these same limits, though you may waive it in writing.
Fault system
California is an at-fault state using a pure comparative fault system. Each party's financial responsibility is reduced in proportion to their percentage of fault. If you are 30% responsible for an accident, you can still recover 70% of your damages from the other party.
PIP is not required in California. Drivers seeking medical coverage after an accident typically rely on Medical Payments (MedPay) or their health insurance.
Pricing rules and rate factors
California is one of the strictest states for insurance pricing. Under Proposition 103:
- Insurers cannot use credit score, education, occupation, gender, or homeownership.
- Rate increases must be reviewed and approved by the California Department of Insurance.
- Annual mileage, years of driving experience, and driving record are the three primary permitted rating factors.
This consumer-protection law often produces lower rates for safe drivers but can result in high premiums for those with violations.
SR-22 filing requirements
An SR-22 certificate is required in California after:
- A DUI or DWI conviction
- Driving without insurance (when cited)
- Certain at-fault accidents
- License suspension or revocation for serious violations
The SR-22 period typically lasts 3 years. If your policy lapses during that period, your insurer must notify the DMV and your license may be resuspended.
Uninsured driver program
California offers a Low Cost Auto Insurance Program (CLCA) for income-eligible drivers, with reduced minimum limits. Eligible drivers pay as little as $244 per year for basic liability coverage.
Penalties for driving uninsured
| Offense | Fine range | Additional consequences |
|---|---|---|
| First offense | $100–$200 + assessments (~$500+ total) | Possible vehicle impoundment |
| Second and subsequent | $200–$500 + assessments | Vehicle impoundment; registration suspension |
Reinstatement of registration after suspension requires proof of current insurance and payment of a $14 reinstatement fee.
Frequently Asked Questions
- What are California's minimum car insurance requirements?
- As of January 1, 2025, California requires 30/60/15: $30,000 bodily injury per person, $60,000 bodily injury per accident, and $15,000 property damage per accident. These replace the previous 15/30/5 minimums that had been in place since 1967.
- Is California a fault or no-fault state?
- California is an at-fault (tort) state. The driver who causes the accident is financially responsible for the other party's injuries and property damage. PIP is not required.
- Can insurers use credit scores to price car insurance in California?
- No. California Proposition 103 prohibits insurers from using credit scores, education, occupation, or homeownership to set auto insurance rates. Pricing must be based on driving record, annual mileage, and years of experience.
- What happens if I drive without insurance in California?
- A first offense carries a fine of $100–$200 plus penalty assessments that can push the total above $500. Repeat offenses are $200–$500 plus assessments. Your vehicle may be impounded, and registration can be suspended.