California car insurance at a glance
| Requirement | California rule |
|---|---|
| Minimum liability | 30/60/15 ($30,000 bodily injury per person, $60,000 per accident, $15,000 property damage), effective January 1, 2025 |
| Fault system | At-fault (tort) |
| Uninsured motorist coverage | Optional, must be offered, rejectable in writing |
| SR-22 | Required to reinstate after DUI, driving uninsured, or serious violations |
| Credit scoring | Banned in rating under Proposition 103 |
What California requires by law
California finally updated its minimums. Senate Bill 1107 doubled the limits on January 1, 2025: you now need at least $30,000 of bodily injury coverage per person, $60,000 per accident, and $15,000 for property damage. The old 15/30/5 floor had not moved since 1967, which tells you how seriously the legislature took it for half a century. Another increase, to 50/100/25, is already scheduled for 2035.
Driving uninsured gets you fines and possible vehicle impoundment. Proposition 213 adds a quieter penalty: uninsured drivers cannot recover pain-and-suffering damages even when the other driver caused the crash. If money is the obstacle, the state’s Low Cost Automobile program (CLCA) exists for income-eligible good drivers. Use it before you drive bare.
Is the new minimum enough? Less inadequate than the old one. But $15,000 in property damage against a freeway full of vehicles worth four times that is still a bad bet, and California’s medical costs make $30,000 of injury coverage evaporate fast. Carry more if you have anything to lose.
What drives premiums in California
- Density and repair costs. Los Angeles, the Bay Area, and San Diego concentrate millions of drivers in slow, expensive collisions. California labor and parts costs are among the highest in the country, so even fender benders cost real money.
- Uninsured drivers. The Insurance Research Council put 20.4 percent of California drivers as uninsured in 2023, one of the highest rates in the nation. UM coverage stops being optional in any practical sense.
- A regulated, whipsawing market. Proposition 103 requires state approval for rate changes. After years of suppressed rates, regulators approved large increases in 2023 through 2025 and several insurers cut off new business. Less competition means worse quotes, which makes shopping harder, more important.
- Theft and catalytic converter losses. Comprehensive claims from theft remain elevated in major metros and feed directly into comp pricing.
How to pay less in California
- Shop more carriers than feels necessary. With insurers entering, exiting, and repricing the California market, quote spreads are unusually wide right now. Start with our cheapest auto insurance guide.
- Get your mileage right. California rates lean heavily on annual mileage by law. If you drive less than you did pre-2020, say so and document it.
- Use your good-driver discount. California mandates a 20 percent discount for qualifying good drivers. Confirm every quote includes it.
- Raise deductibles and drop full coverage on old cars. Standard advice that works harder in a high-premium state.
- Check CLCA if money is tight. A state-approved policy beats a lapse, a fine, and a Prop 213 problem. More moves in how to lower your premium.
For coverage explainers and the other 49 state guides, start at the auto insurance hub, then pull quotes for your ZIP code.