What California requires you to carry

California law requires every driver to carry liability insurance before you can legally drive. Liability covers damage or injury you cause to someone else—their car, their medical bills, their property. You cannot register a vehicle or renew your registration without proof of this coverage.

The state's minimum liability limits are 15/30/5: $15,000 per person for bodily injury, $30,000 per accident for bodily injury to all people in the other vehicle, and $5,000 for property damage. These are the floor. If you cause a serious accident, these limits run out fast. A single person's medical care can exceed $15,000 within days.

California does not require collision or comprehensive coverage—the types that pay for damage to your own car. If you own your car outright, you can legally carry only liability. If you financed or leased the vehicle, your lender will require both collision and comprehensive as a condition of the loan.

Key Takeaways

  • California requires liability insurance with minimum limits of 15/30/5 before you can register or drive legally.
  • Liability covers damage you cause to other people and their property, but does not cover your own vehicle.
  • Collision and comprehensive coverage are optional unless your lender requires them, but they protect your own car from accidents, theft, and weather.
  • You must show proof of insurance when you register your vehicle and when you renew your registration every two years.
  • California's Department of Insurance oversees insurers and handles complaints, but rates and coverage options vary widely between companies.

How to show proof of insurance to the DMV

When you register a vehicle in California, the Department of Motor Vehicles requires proof that you have active liability coverage. You provide this through an SR-1 form—a certificate your insurance company issues that shows your policy number, coverage limits, and the dates your policy is active. Your insurer can file this electronically with the DMV, or you can print it and bring it to a DMV office yourself.

Every two years when you renew your registration, California requires current proof again. If your insurance lapses—even for a day—your registration becomes invalid. If you are stopped by police and cannot show proof of current coverage, you face a fine starting at $100 and can be cited for driving without insurance. The DMV can also suspend your registration if your insurer reports a lapse to the state.

Keep a copy of your SR-1 in your car at all times. If you switch insurers, ask your new company to file the SR-1 when ready. There is usually a gap of a few days between when one policy ends and another begins, so coordinate the timing with your old and new insurers to avoid a lapse.

Collision and comprehensive coverage explained

Collision coverage pays for damage to your car when you hit another vehicle, a fixed object, or roll over—regardless of who is at fault. If you cause the accident, your collision coverage pays for your repairs after your deductible. If someone else causes it, their liability insurance should pay, but your collision coverage bridges the gap if their insurance is insufficient or they have none.

Comprehensive coverage pays for damage from events other than collisions: theft, vandalism, weather (hail, flooding, falling trees), animal strikes, and glass breakage. If a tree falls on your parked car or your car is stolen, comprehensive is what covers it. Collision does not.

Both come with a deductible—usually $250, $500, or $1,000—that you pay out of pocket before the insurance pays. Choosing a higher deductible lowers your monthly premium but means you pay more when you file a claim. If your car is worth less than $5,000, the cost of collision and comprehensive premiums may exceed what you would receive in a claim, so some owners skip them on older vehicles.

Uninsured and underinsured motorist coverage

California requires insurers to offer uninsured motorist coverage (UM) and underinsured motorist coverage (UIM), though you can decline them in writing. These protect you if you are hit by a driver who has no insurance or insufficient insurance to cover your injuries.

Uninsured motorist coverage pays for your medical bills and lost wages when an uninsured driver injures you. Underinsured motorist coverage kicks in when the at-fault driver's liability limits are too low to cover your actual damages. Without these, you would have to sue the other driver personally to recover costs, which is often impossible if they have no assets.

The state does not set minimum UM/UIM limits, but insurers typically offer them at the same limits as your liability coverage. If you carry 15/30/5 liability, you might carry 15/30 UM/UIM. Many people increase these limits because the cost is low and the protection is real—uninsured drivers are common in California.

How rates are set and what affects your premium

California insurers set rates based on factors including your age, driving record, the type of vehicle you drive, how much you drive annually, where you park the car, and your claims history. A young driver with a speeding ticket will pay far more than a 50-year-old with a clean record in the same car. A sports car costs more to insure than a sedan. A car parked on the street in Los Angeles costs more than one in a garage in a rural area.

California law prohibits insurers from using credit score or gender to set rates, though they can use marital status and education level. They cannot use race, religion, or national origin. If you believe an insurer has discriminated against you, you can file a complaint with the California Department of Insurance.

Rates also vary significantly between insurers. One company might charge $1,200 a year for the same driver and car while another charges $1,800. Shopping between insurers every one to two years can save hundreds of dollars. Many insurers offer discounts for bundling home and auto policies, paying in full upfront, completing a defensive driving course, or having safety features in your car.

What happens if you drive without insurance

Driving without liability insurance in California is a misdemeanor. If you are stopped and cannot show proof of current coverage, you face a fine of at least $100 for a first offense, plus court costs. A second offense within five years carries a fine of at least $250. A third offense can result in a fine of up to $500 and suspension of your driver's license for up to four months.

If you cause an accident while uninsured, you are personally liable for all damages—medical bills, vehicle repairs, lost wages, pain and suffering. The other driver can sue you directly and potentially garnish your wages or place a lien on your home. Your vehicle registration will be suspended, and you cannot renew it until you show proof of insurance.

If you cannot afford insurance, some California insurers offer low-income programs or discounts. The California Department of Insurance maintains a list of companies that participate in these programs. You can also contact a local community action agency to learn what resources exist in your area.

Filing a claim and working with your insurer

After an accident or loss, contact your insurer as soon as possible—most require notification within 24 to 72 hours. Have your policy number ready and be prepared to describe what happened, when, where, and whether anyone was injured. Take photos of the damage, get the other driver's insurance information and contact details, and write down the names and phone numbers of any witnesses.

Your insurer will assign a claims adjuster who will inspect the damage, review the police report if one exists, and determine fault and coverage. If the claim is covered, the adjuster will estimate repair costs and either authorize repairs at a network shop or send you a check. If the claim is denied, the insurer must provide a written explanation of why.

If you disagree with the insurer's decision or the amount they offer, you can request an independent appraisal or file a complaint with the California Department of Insurance. The department investigates complaints and can order insurers to pay claims they wrongly denied. Keep all documents related to your claim—photos, estimates, receipts, correspondence—in case you need to dispute the decision.

Frequently Asked Questions

Can I get California car insurance if I do not have a Social Security number?

Yes. Insurers in California can issue policies using an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number. You will need to provide proof of California residency, a valid driver's license or ID, and vehicle information. Not all insurers offer this, so you may need to contact several companies or work with an independent agent who represents multiple insurers.

What is the difference between actual cash value and agreed value for comprehensive claims?

Actual cash value is what your car is worth at the time of loss, minus depreciation. Agreed value is a set amount you and the insurer agree to before a loss occurs. Most standard policies use actual cash value, which means an older car may be worth less than you owe on it. Agreed value is usually available only for classic or specialty vehicles and costs more in premium.

Do I need to carry insurance if my car is not registered?

No, but you cannot legally drive it. If a car is not registered, you cannot legally operate it on public roads. If you own a car you do not drive, you do not need to carry insurance on it, but you must surrender the registration plates to the DMV or request a non-operational status to avoid registration renewal fees.

What happens to my rates if I get a speeding ticket?

Most insurers increase rates after a moving violation like speeding. The increase varies by company and the severity of the violation, but a speeding ticket typically raises your premium by 10 to 30 percent for three to five years. Some insurers offer accident forgiveness or safe driver discounts that prevent or reduce the increase if you have no prior claims.

Can I cancel my insurance mid-policy if I sell my car?

Yes. Contact your insurer and tell them the date you sold the vehicle. They will cancel the policy effective that date and refund any unused premium. Make sure the new owner has their own insurance in place before you transfer the title, because they are not covered under your policy once they own the car.