Auto Insurance Requirements - California DMV (2024)

Insurance (also referred to as financial responsibility) is required on all vehicles operated or parked on California roads.

You must carry evidence of insurance in your vehicle at all times and it must be provided when:

  • Requested by law enforcement.
  • You are renewing the vehicle registration.
  • The vehicle is involved in a traffic collision.

Types of Insurance

Here are the types of acceptable insurance:

  • Motor vehicle liability insurance policy.
  • Cash deposit of $35,000 with DMV.
  • DMV-issued self-insurance certificate.
  • Surety bond for $35,000 from a company licensed to do business in California.

For information regarding cash deposits or self-insurance, contact DMV Financial Responsibility Unit at (916) 657-6677 and select Option 3.

To locate a company that issues surety bonds, contact the Department of Insurance at insurance.ca.gov or by calling 1-800-927-4357.

Minimum Liability Insurance Requirements for Private Passenger, Commercial and Fleet Vehicles

Here are the minimum liability insurance requirements (perCalifornia Insurance Code §11580.1b):

  • $15,000 for injury/death to one person.
  • $30,000 for injury/death to more than one person.
  • $5,000 for damage to property.

Liability insurance compensates a person other than the policy holder for personal injury or property damage.

Comprehensive or collision insurance does not meet vehicle financial responsibility requirements.

Does not include any additional Insurance requirements for Commercial and/or Fleet Vehicles deemed necessary by any Federal, State or Local Agency.

Insurance Companies that Electronically Report to DMV

Insurance companies in California are required by law (California Vehicle Code [CVC] §16058) to electronically report private-use vehicle information and as of January 1, 2023, Commercial and Fleet vehicle insurance information.

Vehicle Registration Suspensions

If DMV does not receive proof of insurance for a vehicle, we will suspend the vehicle’s registration andthe vehicle may not be operated or parked on public roadways until proof of insurance is submitted.

Learn more about vehicle registration suspensions

Frequently Asked Questions (FAQs)

If you cannot afford liability insurance, you may be eligible for the California Low Cost Automobile Insurance Program. Additional information is available at mylowcostauto.com or by calling 1-866-602-8861.

DMV may ask you to submit additional insurance information, such as:

  • A document or identification card from your insurance company.
  • A DMV authorization letter, if you are a cash depositor or are self-insured.
  • California Proof of Insurance Certificate (SR 22) form for broad coverage or owner’s policy.
  • Evidence that the vehicle is owned or leased by a public entity defined in California Government Code §811.2.
  • A Statement of Facts (REG 256) certifying the motor carrier has evidence of insurance on file with the Public Utilities Commission or DMV pursuant to CVC §34630.

Yes. To prevent a vehicle registration suspension, you must notify DMV before you cancel your insurance. If you are not operating your currently registered vehicle, and it is not parked on a California roadway, you may submit an Affidavit of Non-Use (ANU) (REG 5090) to DMV.

After filing the ANU, the vehicle’s insurance may be cancelled. However, if the vehicle is still not in use when registration renewal fees are due, you must pay renewal fees or request the vehicle be placed on planned nonoperation (PNO) status. You are not eligible to file an ANU once the registration expires.

Auto Insurance Requirements - California DMV (2024)

FAQs

What auto insurance is required by law in California? ›

California's Low Cost Automobile Insurance Program (CLCA) The law says that you must have auto liability insurance.

Can you drive with just car registration and not insurance in California? ›

Financial responsibility (commonly known as insurance) is required on all vehicles operated or parked on California roadways. You must carry evidence of financial responsibility in your vehicle at all times and it must be provided as specified below when: Requested by law enforcement. Renewing vehicle registration.

Is there a new law in California for car insurance? ›

For the first time in close to 50 years, California is increasing the minimum financial responsibility requirements for drivers of private passenger automobiles, which have been at $15,000 per person, $30,000 per accident, with $5,000 for property damage for decades.

Can I drive a car without insurance if I just bought it California? ›

If your car is new and you do not have a current car insurance policy, you have 30 days to purchase insurance for it and provide proof of coverage to the California DMV. However, you may not legally drive the vehicle until you have an insurance policy that satisfies California's minimum coverage requirements.

What is considered full coverage for car insurance in CA? ›

Comprehensive, collision and liability insurance are all included in full coverage.

What is minimum essential coverage in California? ›

Minimum Essential Coverage is defined as the type of health insurance coverage that you must have in order to comply with the individual mandate set forth by the Affordable Care Act (ACA) . From January 1, 2014, and onward, individuals must have MEC insurance or they will be subject to a tax penalty.

Can I renew my registration without insurance in California? ›

You can renew your registration online if:

You have insurance for your vehicle OR you are registering a vehicle that does not need insurance (like a trailer). DMV has electronic smog certification information for your vehicle on file.

What is the cheapest car insurance in California? ›

Geico, USAA, Mercury Insurance, Progressive and CSAA are the five cheapest car insurance companies in California, according to our research. The average cost of full-coverage car insurance in California is $193 per month or $2,313 per year.

What happens if I don't insure my car in California? ›

California drivers must at least meet the liability auto insurance coverage requirements of 15/30/5 to drive legally. You can be fined up to $500 out of pocket if you are convicted of driving without insurance in California, depending on whether it's your first or subsequent offense.

Why is it so hard to get car insurance in California? ›

As if high gas prices weren't making life miserable enough, California drivers are being buffeted by higher auto insurance premiums — if they can find coverage at all. Frustrated by state regulations, a number of insurers have limited the new policies their agents can sell in California.

What is going on with auto insurance in California? ›

Allstate stopped issuing homeowners insurance policies to new customers in California in 2022, and stopped directly selling new auto insurance policies in the state. The company decided to return but only after regulators agreed to let it raise auto insurance rates by an average of 30%.

What is the penalty for not having car insurance in California? ›

First-Time Offense: If you are caught driving without insurance in California for the first time, you can expect a fine ranging from $100 to $200. Additionally, penalty assessments may increase this amount, potentially totaling around $450 after extra fees and assessments. Vehicle impoundment is also a possibility.

What are California auto insurance requirements? ›

Here are the minimum liability insurance requirements (per California Insurance Code §11580.1b): $15,000 for injury/death to one person. $30,000 for injury/death to more than one person. $5,000 for damage to property.

How many days do you have to insure a used car after purchase in California? ›

California allows a new car insurance grace period of 30 days, which is how long you have after purchasing a vehicle to buy insurance for that car and provide proof of active insurance coverage to the California DMV.

Can you get same day car insurance in California? ›

Same-Day Insurance in California

If you're on the road, you need insurance. Obtain same-day insurance in California by calling our agents at Saferoad Insurance Services.

How much uninsured motorist coverage do I need in California? ›

How much UMC/UIM do I need? The default UMC/UIM California insurers offer is typically: $30,000 for bodily injury coverage or death per person, and. $60,000 for total bodily injury or death per accident (to all people in the other vehicle combined), and.

What is SR22 insurance in California? ›

In California, an SR-22 is a “Certificate of Financial Responsibility” required for certain drivers to prove they carry the state's minimum required auto insurance coverage. This includes at least $15,000 for bodily injury liability per person, $30,000 per accident and $5,000 for property damage liability.

What car insurance do I need? ›

There are three main types of car insurance available: third party, third party, fire and theft, and fully comprehensive. It's worth comparing all your car insurance options to find the deal that's right for you. Third party – every driver is legally required to have at least third party car insurance.

What does 15/30/10 mean in insurance? ›

If your limits are 15/30/10, this means: No more than $15,000 would be paid per person for Bodily Injury. No more than $30,000 would be paid per accident for Bodily Injury. No more than $10,000 would be paid per accident for Property Damage.

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