Liability Insurance in California: What You Need to Know to Stay Compliant
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Drivers always need to follow their state’s vehicle and traffic laws. Though these laws vary, almost every state requires drivers to carry a minimum amount of car insurance. In California liability insurance fulfills the state’s auto insurance requirement as long as the policy meets the minimum limits.
Learn about liability insurance in California and what you need to do to meet all your insurance requirements.
Overview of Liability Insurance
Auto liability insurance is a type of car insurance that pays for bodily injury or property damage that other people suffer when you’re at fault for an accident. For example, say you cause a car accident and end up damaging someone else’s fence in the process. Your liability car insurance in California would cover the cost of repairing that fence. If someone in a car you hit in an at-fault accident got hurt, your liability insurance would also cover their medical bills for those injuries.
Minimum Liability Coverage Requirements in California
There are generally three components to liability insurance coverage, and you must meet the minimum coverage requirements in all three categories to comply with California law. Here are the current minimums for liability insurance in California:
- $15,000 for the death or injury of one person
- $30,000 for the death or injury of multiple people
- $5,000 for property damage
You may also see this requirement expressed as 15/30/5 in shorthand. The figures tell you the policy limit of what your insurance company will pay out in each category when you’re at fault for an accident.
On January 1, 2025, these minimums increase for private passenger vehicles to:
- $30,000 for the death or injury of one person
- $60,000 for the death or injury of multiple people
- $15,000 for property damage
If your current California car insurance plan does not meet these new minimums, you’ll need to get a new plan before January 1, 2025, to fulfill the state’s insurance requirements. Keep up with insurance news to make sure you don’t miss any other rule changes.
Other Ways to Fulfill California’s Auto Insurance Requirements
Califonia also allows other forms of acceptable insurance if you don’t have a liability insurance policy. Your other insurance options are a cash deposit of $35,000 with the California DMV, a surety bond for $35,000 from a company licensed to do business in California, or a self-insurance certificate from the DMV.
Whichever option you choose, always have proof of that insurance in your vehicle. If you get in an accident or law enforcement pulls you over, you may need to provide proof of insurance. You also need this proof when renewing your vehicle’s registration.
Review the insurance requirements of your state:
The Consequences of Driving Without Insurance
Driving without insurance is a serious offense in California. If you get caught driving without an insurance policy that meets California’s minimum insurance requirements, the DMV will suspend your driving privilege for up to four years. After you serve one year of suspension, you can get your license back if you show a California Insurance Proof Certificate and maintain it for the next three years.
Types of Coverage Available
California only requires auto liability insurance, but you can also purchase additional coverage. Liability insurance does not cover damage to your own vehicle or your medical expenses from an accident. If you want coverage for those expenses, you need to add it to your auto insurance plan.
Other types of car insurance include:
Uninsured Motorist Protection
Even though it’s required, some drivers still don’t carry auto insurance. If you get in an accident caused by someone without insurance, uninsured motorist protection will pay for your medical expenses and possibly your vehicle repairs.
Underinsured Motorist Protection
Similar to uninsured motorist protection, underinsured motorist protection covers your bills if you’re in an accident caused by someone whose liability insurance limits are not high enough for your injuries or property damage. Your underinsured motorist protection makes up the difference up to your own policy limits.
Comprehensive and Collision Coverage
Collision coverage helps pay for your vehicle repairs or replacement if you’re in an accident with another vehicle or stationary object. Comprehensive auto insurance helps cover damage from incidents like hail, vandalism, and theft. Both collision and comprehensive coverage are generally optional, as is the case in California.
How To Compare Insurance Policies
With so many insurance options, selecting the right plan can be intimidating. You want to find discounts and get the best prices but may not know where to start. One option is to work with California insurance agents who can help you find the right coverage for your needs.
Alternatively, compare insurance plans online with a free custom comparison from EverQuote. Within minutes, you’ll have a comprehensive list of all your insurance options and the prices so you can choose the best one for you.
Stay Compliant and Get Financial Protection With Liability Insurance in California
California drivers need to at least carry liability insurance that meets the minimum requirements. For additional protection, consider adding uninsured motorist, comprehensive, or collision coverage. Shop around to find the best insurance providers and plans so you can save money while staying compliant.
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