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.

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.

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.

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.

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

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.

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.

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.

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.

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%.

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.

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.

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.

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 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.

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.

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.

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.