Guide to Car Insurance in California

California car insurance laws require drivers to have coverage before operating any vehicle. These are the minimum car insurance requirements in California:

• $30,000 bodily injury per person
• $60,000 bodily injury per accident
• $15,000 property damage

Liability insurance includes bodily injury coverage and property damage coverage, paying for the other party’s injuries and damages when you’re at fault in an accident. While California increased its minimum liability limits in 2025, it still may not be enough to cover the cost of a major accident. If you can afford it, it’s wise to purchase a policy with higher limits:

• $100,000 bodily injury per person
• $300,000 bodily injury per accident
• $100,000 property damage

Premiums for car insurance in California are only slightly above the national average, largely because of California’s laws restricting car insurance hikes. California full coverage rates are nine percent higher than the national average, while minimum coverage is about four percent higher.

On average, drivers pay $2,569 per year for full coverage and $751 per year for minimum coverage. Many factors affect the cost of insurance, from your driving record to your ZIP code (although not your credit score or gender, as we’ll see later).

How much you pay varies depending on factors like your location, driving profile, and vehicle. In more densely populated cities, California drivers pay higher premiums. For example, drivers in Los Angeles pay $2,891 per year, while those in San Diego pay $2,059 per year.

At-Fault State

Like the majority of states in the U.S., California is an at-fault state. In at-fault states, the driver who caused the accident is financially responsible for injuries and property damages, which is why liability coverage is a requirement.

In terms of negligence laws, California is a pure comparative negligence state, which means that the victim can recover money for their injuries even if they were negligent at any level. For example, if a party is 80 percent at-fault for an accident, they can still recover 20 percent of the damages.

Driving Without Insurance

Even though California car insurance laws require all drivers to have an active policy, more than one-fifth of drivers in the Golden State are uninsured.¹ If you drive without insurance in California, you face up to $200 in fines plus penalty assessment fees. For subsequent offenses, fines increase up to $500, and penalty assessment fees up to $1,300.

Moreover, if you get caught driving without insurance after an accident, you’ll have your license suspended and be required to show proof of financial responsibility for three years.

Drivers also must carry proof of insurance, whether it’s a physical ID card or a digital ID in an app.

DUI Laws

California has strict DUI laws. DUIs will stay on your record for 10 years, with a four-month license suspension for the first offense.

DUI interlocks are mandatory for DUI convictions in the counties of Los Angeles, Tulare, Sacramento, and Alameda, though they’re discretionary everywhere else. You must have a DUI interlock installed for a maximum of three years. Overall, penalties are worse if your blood alcohol concentration is 0.15 percent or above.

Distracted Driving Laws

No one is allowed to use handheld devices while driving in California, which covers texting and driving as well as any form of distracted driving. There are fines for texting and driving in California.

• First offense: $20
• Subsequent offenses: $50

You’ll also get one point per violation, with primary enforcement for drivers 18 and older and secondary enforcement for minors (drivers younger than 18).²

Teen Drivers

Speaking of minors, the laws look different if you have a provisional license. For the first year, minors with provisional licenses can’t drive between the hours of 11 p.m. and 5 a.m. They also can’t transport people under age 20 unless they’re accompanied by one of these parties:

• A licensed parent or guardian
• A California driver at least 25 years old
• A certified driving instructor

Cancellation and Non-Renewal Policies

Every state has laws surrounding the cancellation and non-renewal of car insurance policies. In California, insurance companies must notify you of a midterm cancellation or non-renewal at least 20 days before the policy’s expiration date. However, if the company is canceling your policy because you haven’t paid your premiums, that window shortens to 10 days.

If you have a DUI or have a violation for driving without insurance, you’ll need to file an SR-22 in California. An SR-22 is a certificate that shows proof of financial responsibility. In cases that mandate an SR-22, you must maintain it for at least three years.

Here are some cases where you’d be required to have an SR-22:

• You’re reinstating your driving privileges after a DUI or a wet-reckless suspension or revocation.
• You were in an accident and uninsured.
• You’re reinstating your driving privileges after the DMV suspended or revoked your license because it declared you a negligent operator, meaning you had too many points on your driving record within a certain period.³

Drivers who fall below certain income thresholds can apply for the California Low-Cost Automobile Insurance Program. The program is designed to help low-income individuals get minimum liability insurance at a lower cost.⁵

In order to qualify, you must meet these requirements:

• Have California driver’s license
• Have a clean driving record
• Own a vehicle worth $25,000 or less
• Have a household income equal to or lower than:
• • $32,200 for one person
  • $43,550 for two people
  • $54,900 for three people
  • $66,250 for four people
  • $94,125 for five people

Find cheap car insurance rates in California by:

• Comparing quotes: Get at least three quotes from different providers with the same coverage. Some companies have better rates depending on your driving profile.
• Increasing deductibles: Lower your limits for collision and comprehensive coverage to decrease your premiums.
• Bundling policies: Combine your home and auto insurance to save up to 20 percent on your policy.