State requirements
California Car Insurance Requirements & Average Cost (2026)
California requires 15/30/5 minimum bodily injury and property damage liability (increasing to 30/60/15 under SB 1107). California is a pure comparative fault state.
Data reviewed October 24, 2026
California law mandates all drivers maintain continuous financial responsibility. As one of the largest auto insurance markets in the nation, California enforces strict minimum liability requirements administered by the California Department of Motor Vehicles (DMV) and California Department of Insurance (CDI). Effective recent legislative updates have restructured minimum bodily injury and property damage standards.
| Coverage Type | California Legal Minimum | Recommended Standard |
|---|---|---|
| Bodily Injury (Per Person) | ,000 / ,000 (phasing) | ,000 |
| Bodily Injury (Per Accident) | ,000 / ,000 (phasing) | ,000 |
| Property Damage Liability | ,000 / ,000 (phasing) | ,000 |
| Uninsured Motorist (UM/UIM) | Optional (must reject in writing) | Matches BI Limits (k/k) |
| Collision & Comprehensive | Not required by state | ACV with –,000 deductible |
Mandatory Coverage Limits in California
Under California Insurance Code § 11580.1b, the baseline minimum bodily injury liability is ,000 per person and ,000 per accident, with ,000 in property damage liability (commonly denoted 15/30/5), with phased increases to 30/60/15 taking effect under SB 1107. Carrying state minimums alone leaves drivers exposed to personal asset attachment after serious multi-vehicle collisions.
Fault System & Tort Liability
California operates under a pure comparative fault system. If you are found 20% at fault in an accident causing ,000 in damages, you can still recover 80% (,000) from the other driver. Conversely, you can be sued for your 20% share, making adequate liability limits essential.
Penalties for Driving Uninsured
Driving without proof of insurance in California triggers fines between and for a first offense, plus administrative penalty assessments that often push total fees above . Subsequent offenses within three years carry fines up to plus court assessments and potential vehicle impoundment.
Average Annual Cost Benchmarks
Average state-minimum liability in California ranges from to annually depending on zip code, while comprehensive full coverage averages ,250 to ,850 per year for a 35-year-old driver with a clean record.
Frequently asked questions
- Does California require uninsured motorist coverage?
- Insurers must offer UM/UIM coverage, but California law allows drivers to decline it by signing a written waiver.
- Can California auto insurers use credit scores to set rates?
- No. Under Proposition 103, California prohibits insurance companies from using credit history or FICO scores to determine personal auto insurance premiums.
Sources
More in State insurance guides
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