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California made one of the biggest changes in recent years to a state minimum. On January 1, 2025, required liability limits rose from 15/30/5 to 30/60/15 under SB 1107, the first increase in decades. The law applies to ordinary policies, while the Low Cost Auto Insurance (CLCA) program keeps its lower limits of 10/20/3 for income-eligible drivers who own a vehicle valued at $25,000 or less.
Several things set California apart. Proposition 103 bars insurers from using credit-based scores to rate auto policies, and rate changes must go through the Department of Insurance. Insurers also report coverage electronically to the DMV, and if the DMV does not receive proof the registration is suspended and the vehicle may not be operated or parked on public roads. Alternatives to a policy exist, such as a $75,000 cash deposit or a $75,000 surety bond, but few drivers use them. Wildfire smoke and burn areas, earthquakes and dense urban traffic make comprehensive and collision coverage a real question even though only liability is required.
| Minimum liability | 30/60/15 (BI per person / BI per accident / PD, in $1,000s) |
|---|---|
| Other required coverage | None beyond liability |
| Fault system | At-fault (tort) |
| Credit-based insurance scores | Not allowed |
| SR-22 / proof of financial responsibility | California can require proof of financial responsibility, commonly an SR-22, after certain violations or an uninsured collision; the DMV notes an uninsured crash can lead to a license suspension. Ask the DMV or court how long you must keep the filing. |
California minimum liability limits
To register and drive a car in California you need at least this much liability coverage:
- $30,000 for injuries to one person in an accident you cause.
- $60,000 in total for injuries to everyone in that accident.
- $15,000 for damage to other people's property, such as their car.
Raised on January 1, 2025 under SB 1107 from 15/30/5. The Low Cost Auto Insurance program for income-eligible drivers keeps lower limits of 10/20/3.
Tip: The minimum is a legal floor, not a recommendation. If a serious crash costs more than your limits, you could be personally responsible for the rest. See how much liability coverage you may need.
Is California a no-fault state?
California is an at-fault (tort) state. The driver who causes a crash is responsible for the other people's injuries and property damage, which is normally paid by that driver's liability insurance. Injured people can claim against the at-fault driver's insurer or, in some cases, sue.
California uses pure comparative negligence, so your compensation is reduced by your share of fault but is never barred entirely.
Read more: at-fault vs. no-fault states explained.
Can insurers use your credit in California?
Status: Not allowed. California prohibits insurers from using credit reports and credit-based insurance scores to rate or underwrite auto insurance (Insurance Code 1861.02, added by Proposition 103).
See how credit affects car insurance for the bigger picture.
Penalties for driving uninsured in California
A first conviction for driving without insurance carries a fine of $100 to $200 plus penalty assessments, and a second conviction within three years carries $200 to $500 plus assessments. A court may also order the vehicle impounded, and the DMV suspends the registration if it does not receive proof of insurance.
Insurers must electronically report private-use vehicle insurance to the DMV under Vehicle Code 16058, and since January 1, 2023 they must also report commercial and fleet vehicles. If the DMV receives no proof, the registration is suspended.
California can require proof of financial responsibility, commonly an SR-22, after certain violations or an uninsured collision; the DMV notes an uninsured crash can lead to a license suspension. Ask the DMV or court how long you must keep the filing.
If you are ordered to file proof of insurance, see what SR-22 insurance is.
Tips for California drivers
- If you renewed on or after January 1, 2025, check your declarations page. Many policies moved to 30/60/15, but confirm your limits and whether you want more than the minimum.
- Ask your insurer about the Low Cost Auto Insurance program if your income is limited. It offers lower limits of 10/20/3 and requires a vehicle valued at $25,000 or less, with income guidelines set by the program.
- Notify the DMV before you cancel insurance on a car you are not driving. You can file an Affidavit of Non-Use (REG 5090) or use planned nonoperation status to avoid a registration suspension.
- Because credit-based scores cannot be used for auto rates, factors such as your driving record, mileage and vehicle matter more. Make sure the mileage on your policy is accurate.
- Wildfire risk affects comprehensive claims for vehicles as well as homes. Review what comprehensive covers if you park in a fire-prone area, and keep photos of your car's condition.
- Keep proof of insurance in the vehicle. California requires you to show it when an officer asks, when you renew registration and after a collision.
When you shop, compare quotes from several insurers using the same limits and deductibles, so the prices are like-for-like.
Official resources
- Insurance regulator: California Department of Insurance
- Motor vehicle agency: California DMV
Your state insurance department can answer questions about your rights and handle complaints about insurers.
Frequently asked questions
What are California's minimum car insurance limits in 2026?
California requires $30,000 for injury or death to one person, $60,000 for injury or death to more than one person, and $15,000 for property damage, written as 30/60/15. These limits took effect January 1, 2025 under SB 1107 and replaced the previous 15/30/5 minimums. Comprehensive or collision coverage does not satisfy the requirement.
What is California's Low Cost Auto Insurance program?
The California Low Cost Automobile Insurance (CLCA) program offers lower-limit liability coverage for income-eligible drivers. Its limits are $10,000 per person and $20,000 per accident for bodily injury and $3,000 for property damage. Drivers must hold a valid license, own a vehicle valued at $25,000 or less, and meet income guidelines. Details are at mylowcostauto.com.
What happens if I drive without insurance in California?
A first conviction carries a fine of $100 to $200 plus penalty assessments, and a second within three years carries $200 to $500 plus assessments. A court can also impound the vehicle. The DMV suspends the registration if it gets no proof of insurance, and an uninsured collision can lead to a license suspension.
Can California insurers use my credit score for auto insurance?
No. California prohibits insurers from using credit reports and credit-based insurance scores to rate or underwrite auto insurance, a rule that comes from Proposition 103 and Insurance Code 1861.02. Insurers instead rely mainly on factors such as driving safety record, miles driven and years of driving experience, though the specific factors vary by company.
Is California a no-fault state?
No. California is an at-fault state that uses pure comparative negligence. The driver who causes a crash is responsible for the damage, and an injured person's recovery is reduced by their own percentage of fault. Even a driver who is mostly at fault can recover the share of damages caused by someone else.
Sources
- California DMV – Insurance requirements
- California Department of Insurance – California's Low Cost Auto Insurance
- California Department of Insurance – Bulletin 2023-1 on SB 1107
- California Legislative Information – Vehicle Code 16029
- NAIC – Use of Credit Reports/Scoring in Underwriting (state chart, Summer 2025)
General information only. State rules change. Confirm current requirements with the California Department of Insurance or your insurer before you buy. This page is not insurance or legal advice.