Personal Auto Insurance in California

Driving in California can be enjoyable and picturesque, but the state’s geography may be difficult to navigate. Whether you're using the freeways of Los Angeles or cruising down the Pacific Coast Highway, accidents can easily occur. Having personal auto insurance may be essential for these incidents because it can help you cover certain damages depending on your policy.  

Pondering your state’s auto insurance requirements and how expensive coverage might be may feel overwhelming. Here, we’ll break down what you should know about personal auto insurance in California, the state’s minimum coverage requirements, what can affect insurance costs, and how you can get a policy that aligns with your needs.  

Auto insurance requirements in California  

In California, having car insurance is not just helpful, but important to stay compliant with state laws. California requires drivers to carry a minimum level of liability insurance. This type of insurance can help cover costs if you injure someone or damage their vehicle during an accident.  

As of 2025, California has new minimum insurance requirements. These are:  

• $30,000 for injury to one person in an accident  
• $60,000 for injury to multiple people in an accident  
• $15,000 for damage to a third party’s property  

When minimum coverage is not enough  

So, what would a scenario be where California’s minimal liability coverage may fall short? Imagine you collide with another car, and you’re deemed at fault. If you get into a severe accident or collide with an expensive car, the minimum liability coverage you’ve purchased might not cover the total damage costs. This is where opting for higher liability limits may help you avoid paying large out-of-pocket costs.  

Full coverage vs. minimum coverage  

Though minimum liability can be essential, purchasing full coverage may help drivers navigate a wider array of situations. The term full coverage can be deceptive, though, because it does not cover every accident, but may help you cover damage to your vehicle in certain circumstances. Alongside liability, full coverage typically includes:

• Collision coverage: This can help pay for damages to your own vehicle if you're in a covered accident, regardless of fault.  
• Comprehensive coverage: This can help cover damage to your car caused by certain non-collision incidents, like vandalism, theft, or natural disasters.  

Penalties for driving without insurance  

California takes driving without insurance seriously. If you're caught driving without proof of insurance, you may face a fine of up to $200 and additional assessment fees. If you have subsequent offenses, you could face up to $1,800 fines.  

If you're in a collision and don’t have proper insurance coverage, your driving privileges could be suspended for a year, or up to four years for a second offense. If you’re a repeat offender, your vehicle may also be impounded, regardless of who caused the accident. To get your license back, you’ll need to obtain an SR-22 certificate (proof of minimum liability insurance). You may only be able to get your license back in the last three years of suspension, but you must maintain your SR-22 and proof of financial responsibility until the suspension period ends.  

Is California considered a no-fault state?  

California is not a no-fault state. This means that if you're involved in an accident, the driver who is at fault is typically responsible for paying for the damage. If you're the at-fault driver, your liability coverage can help cover the other driver’s costs. If you don’t have sufficient coverage or the damage exceeds your liability limits, you could be personally responsible for paying the remaining expenses.  

How much does auto insurance cost in California?  

You may be wondering if California has low-cost auto insurance available in the state. There are many factors that can affect how pricey or inexpensive your coverage is. Insurance companies consider a combination of things when determining your rates, which can include:  

• Your driving history: If you have a history of accidents or traffic violations, your rates may be higher.  
• Your car's make and model: Luxury or electric vehicles may cost more to insure because of how expensive repairing their parts might be.  
• Your location: Insurance rates may vary based on where you live in the state. For example, those living in urban areas like Los Angeles or San Francisco may experience higher rates due to a larger occurrence of accidents.  
• Your age: Younger drivers under 25 may face higher premiums due to statistical risk factors.  
• Coverage options: The more coverage you add (like collision or comprehensive), the higher your premium may be.