Short answer: In 2026, every California auto policy must carry at least $30,000 of liability coverage for injury or death to one person, $60,000 for two or more people and $15,000 for property damage (30/60/15). That is only the legal floor. Most buyers should also decide on uninsured motorist coverage (included unless you reject it in writing), collision and comprehensive for a car worth repairing, and liability limits high enough to protect their savings and home. California law says your price must be based mainly on your driving record, then the miles you drive, then your years of driving experience, and a qualifying good driver must get a rate at least 20% lower. Compare at least a few quotes with identical coverage, then pick the best value, not just the lowest price.
This guide is for California drivers buying a first policy, moving here from another state, adding a teen, or rechecking an old policy. It walks through what's required, what's optional, how prices are set and how to shop, with links to our state tables for details. It's general information; your policy's wording and the insurer's approved rating plan control.
What California requires in 2026
Minimum liability limits
For policies issued or renewed on or after January 1, 2025, the minimums are:
| Coverage | Minimum | Source |
|---|---|---|
| Bodily injury or death, one person | $30,000 | Veh. Code §16056 |
| Bodily injury or death, two or more people | $60,000 | Veh. Code §16056 |
| Property damage | $15,000 | Veh. Code §16056 |
These rise again to 50/100/25 for policies issued or renewed on or after January 1, 2035. See California's 30/60/15 minimums explained and compare other states in our state insurance rules hub.
Proof of insurance
You must be able to show proof of financial responsibility, and California lets you show it on a phone or other mobile device (Vehicle Code §16028). Driving without insurance is an infraction. A first conviction carries a fine of $100 to $200 plus penalty assessments, and a later conviction within 3 years carries $200 to $500 plus assessments. The court can also order the car impounded (Vehicle Code §16029). See electronic proof of auto insurance by state and car insurance lapse penalties by state.
If you just moved here
The DMV says a vehicle registered in another state must be registered in California within 20 days of becoming a resident, and you'll need proof of a California policy to do it. See California car insurance for new residents.
The coverages, in plain English
A California auto policy is really a bundle of separate coverages. Here's what each one does and how to think about it.
Bodily injury and property damage liability
Pays for injuries and damage you cause to other people. It's the only coverage the law requires. The minimum is the floor, and a serious crash can cost far more than $30,000 per person. If your costs go over your limits, you may be personally responsible for the rest. Many drivers with a home or savings choose higher limits, such as 100/300/100 or more, and some add an umbrella policy on top. See personal umbrella insurance in California and how much umbrella insurance do I need?
Uninsured and underinsured motorist (UM/UIM)
Pays for your injuries when the at-fault driver has no insurance or not enough. In California it's included in your policy unless you reject it in writing (Insurance Code §11580.2). Think carefully before rejecting it. See uninsured and underinsured motorist coverage and UM requirements by state.
Uninsured motorist property damage
Insurers must offer it, but you don't have to buy it. If you have collision coverage, it can pay your collision deductible after a crash with an identified uninsured driver. Without collision, it pays up to the car's actual cash value or $3,500, whichever is less (Insurance Code §11580.26). See UM property damage rules by state.
Collision
Pays to repair or replace your car after a crash, regardless of fault, minus your deductible. Lenders and leasing companies usually require it. For an older car worth little, the premium plus deductible may not be worth it.
Comprehensive
Pays for damage from things other than a crash, such as theft, vandalism, fire, falling objects, hitting an animal and broken glass, minus your deductible. Some states require insurers to offer glass coverage without a deductible; see zero-deductible auto glass laws by state.
Medical payments
Pays medical bills for you and your passengers after a crash, regardless of fault, up to a small limit. It's optional in California.
Rental reimbursement and towing
Inexpensive add-ons that pay for a rental car while yours is in the shop and for roadside help. Useful if you'd have no other way to get around.
Gap coverage
If you owe more on a loan or lease than the car is worth, gap coverage pays the difference after a total loss. Some loan or lease contracts already include it, so check before you buy it twice.
How California sets your price
California is different from most states. Under Proposition 103, insurers must base auto rates on three mandatory factors, in decreasing order of importance (Insurance Code §1861.02):
- Your driving safety record
- The miles you drive each year
- Your years of driving experience
Insurers can then use other factors that the Insurance Commissioner has approved by regulation, and each insurer's rating plan weighs those differently. That's why quotes for the same driver can vary so much. See Prop 103 auto rating factors and how Prop 103 rate review works.
Two protections matter when you shop:
- The Good Driver Discount. If you meet the good-driver criteria in Insurance Code §1861.025, you can buy a Good Driver Discount policy from the insurer of your choice, and your rate must be at least 20% below what you'd otherwise pay for the same coverage.
- No penalty just for having no prior insurance. Not having had auto insurance before can't, in and of itself, be used to set your rates or decide your eligibility for the Good Driver Discount (Insurance Code §1861.02(c)).
Lower-income drivers may qualify for the state's California Low Cost Auto Insurance program.
Step by step: how to buy car insurance in California
Step 1: Gather your information
- Driver's license numbers for everyone in the household who drives
- Each car's VIN, year, make and model
- A realistic estimate of annual miles per car (look at past service records or odometer readings)
- Your current declarations page, if you have one
- Any tickets or accidents in the last few years
Step 2: Decide your liability limits first
Start with liability, because it protects everything you own. Think about your home equity, savings and future income. If you'd have a lot to lose in a lawsuit, choose higher limits and ask about an umbrella.
Step 3: Decide on UM/UIM
Match UM/UIM limits to your liability limits if you can. It protects you and your family, not the other driver.
Step 4: Decide on collision and comprehensive
Look up your car's approximate value. If it's financed or leased, the lender decides. If it's paid off and worth little, compare a year of premium plus your deductible with what the car is worth.
Step 5: Pick deductibles you could pay tomorrow
A higher deductible lowers your premium, but only choose one you could pay out of pocket after a crash without hardship.
Step 6: Get quotes with identical coverage
Ask each insurer or broker for the same limits, deductibles and add-ons, so you're comparing like with like. An independent broker can quote several insurers at once.
Step 7: Ask about every discount you might qualify for
Common ones include the Good Driver Discount, multi-car, bundling with home or renters, low mileage, good student, completing a driver training course, and safety or anti-theft features. Available discounts depend on each insurer's approved plan.
Step 8: Read the policy before you buy
Check the named drivers, listed cars, garaging address and annual mileage. Wrong information can lead to problems with a claim later. Check whether any household driver is excluded; see named driver exclusion laws by state.
Step 9: Start the new policy before canceling the old one
Never leave a day uncovered. Set the new start date, confirm it's active, and only then cancel the old policy. Our guide on how to switch insurance companies without a coverage gap covers the details.
Step 10: Keep proof in the car and on your phone
Save your ID card to your phone and keep a paper copy in the glove box.
Special situations
- Teen drivers: adding a teen usually raises the premium, and good student and driver training discounts may help. See teen driver car insurance.
- Rideshare and delivery driving: a personal policy may not cover you while you're logged into an app. California sets separate requirements for rideshare companies; see rideshare insurance requirements by state.
- Lending your car: in California, owners can be liable for a permissive driver's negligence up to set amounts. See car owner liability for permissive drivers by state.
- After a DUI: see California auto insurance after a DUI.
- Renting a car: see California rental car damage waiver rules.
- Classic cars: see California classic car insurance.
After a crash: your rights at claim time
California insurers must acknowledge a claim within 15 calendar days and accept or deny it within 40 days of receiving proof of claim. See California auto claim timelines. You can choose your own repair shop, and the insurer can't require you to use a particular one (Insurance Code §758.5); see auto repair shop choice laws by state. For a total loss, see total loss car valuation rules by state.
If your insurer cancels or won't renew
California auto insurers must give at least 20 days' notice to cancel (10 days for nonpayment) and at least 30 days' written notice to non-renew, or offer renewal at least 20 days before expiration (Insurance Code §§662, 663). See car insurance cancellation and non-renewal notice rules by state.
Related state tables and guides
Frequently asked questions
What is the minimum car insurance in California in 2026?
$30,000 for injury or death to one person, $60,000 for two or more people and $15,000 for property damage, for policies issued or renewed on or after January 1, 2025 (Vehicle Code §16056).
Is uninsured motorist coverage required in California?
It's included in your policy unless you reject it in writing (Insurance Code §11580.2). You don't have to keep it, but it protects you and your passengers if the at-fault driver has little or no insurance.
How does California decide what I pay for car insurance?
By law, mainly on your driving record, then annual miles driven, then years of driving experience, plus other factors the Commissioner has approved (Insurance Code §1861.02).
What is the Good Driver Discount?
If you meet the criteria in Insurance Code §1861.025, you can buy a Good Driver Discount policy from the insurer you choose, and the rate must be at least 20% below what you'd otherwise pay for the same coverage.
Can I show proof of insurance on my phone in California?
Yes. Vehicle Code §16028 allows proof on a mobile electronic device.
Is the state minimum enough?
It's the legal floor, not a recommendation. A serious crash can exceed it, and you may be responsible for costs above your limits. Many drivers choose higher limits based on what they have to protect.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. Not legal, tax or financial advice, and not a coverage determination. Coverage depends on policy language and underwriting.