Insurance in California: State Rules and Requirements

Insurance in California

The rules that shape car, home and business insurance in California, each linked to its official source, and how to get coverage shopped here. Sam Alishahi holds a California insurance license (#4348151) and handles California requests himself.

By Sam Alishahi · Reviewed October 2026

Car insurance in California (30/60/15)

Minimum car insuranceSince January 1, 2025, California has required at least $30,000 bodily injury liability per person, $60,000 per accident and $15,000 property damage liability, up from the 15/30/5 limits in place since 1967. PIP is not required. Insurers must offer uninsured/underinsured motorist coverage, and you have to sign a waiver to decline it. Source
Fault systemCalifornia is an at-fault (tort) state: the driver who causes a crash is responsible for the other people's injuries and property damage, usually through their liability insurance. Source

Business insurance rules in California

Workers’ compensationCalifornia employers must carry workers' comp even if they have only one employee, or get state approval to self-insure. Employers can't ask employees to help pay the premium. Coverage comes from competing insurers, not a monopolistic state fund. Source
Contractor licensingThe Contractors State License Board (CSLB) requires every licensed contractor to keep a $25,000 contractor bond. Contractors must also show proof of workers' comp or file an exemption if they have no employees. Concrete, HVAC, asbestos abatement, roofing and tree service contractors must carry workers' comp even with no employees. LLC licensees must also carry at least $1 million in liability insurance and an extra $100,000 bond. Source

Home insurance in California

Home insurer of last resortThe California FAIR Plan is the insurer of last resort for homes and businesses that can't get coverage from a regular insurer, and the Department of Insurance lists it under its wildfire resources. Wildfire is the main catastrophe exposure, and standard homeowners policies do not cover earthquake damage, which needs a separate policy. Source

Disasters, floods, hail, tornadoes and earthquakes in California

California disasters, floods, hail, tornadoes and earthquakes, from federal records
Measure	California	Rank among the states	Detail
Federal major disaster declarations since 2000	52	#2 of 51	Most often for severe storm (19), fire (15), flood (6). Los Angeles County has been in 15 of them.
National Flood Insurance Program claims, 2005–2025	13,748	#14 of 51	$390.0 million paid; 37% of claims with a known flood zone were outside FEMA’s high-risk zones.
Homes in high-risk flood zones with a federal flood policy	30%	#17 of 50	90,678 policies for 299,579 homes in the counties FEMA can measure; US: 40%.
Hail reports, 2016–2025	318	#36 of 51	3 of them 2 inches or larger. Largest stone 3 inches, Tehama County, January 2016.
Tornadoes, 2016–2025	61	#32 of 51	1 rated EF2 or stronger; 486 recorded since 1950.
Earthquakes of magnitude 4.0+, 2000–2025	1,028	#2 of 51	Largest: magnitude 7.2, 153 km W of Big Lagoon, California, June 15, 2005.

From the public FEMA, NOAA, Storm Prediction Center, USGS and FMCSA records behind each linked report; ranks count all 50 states and Washington, DC unless noted.

Look up the storm history of any county in California.

The property risks that matter in California

California raised its auto minimums in 2025 under SB 1107, and the Sustainable Insurance Strategy is reshaping home insurance availability in wildfire areas.

Wildfire risk has changed home insurance availability in parts of California. Defensible space, ember-resistant vents and a Class A roof help eligibility, and if private insurers decline, ask about the residual market and difference-in-conditions coverage.

California has meaningful seismic exposure, but earthquake coverage must be added separately. Older unreinforced masonry and homes with raised foundations are most vulnerable; ask about retrofit credits.

Mudflow after wildfires is generally treated as flood under NFIP rules, while landslide is excluded from most homeowners policies. Burn-scar areas deserve a flood policy review.

Worth knowing in California

Earthquake damage is excluded from California homeowners, renters and condo policies. Your insurer must offer you earthquake coverage in writing every other year, but buying it is your choice.

California coverage checkup

Compare your auto liability limits with the California minimum of 30/60/15 and with your actual assets.
Document defensible space and home hardening work with dated photos for your insurer.
Get an earthquake quote and compare the percentage deductible in dollars.
Landlords: confirm fair rental value and liability on each unit.

California’s insurance regulator

Insurance in California is regulated by the California Department of Insurance, which handles consumer complaints and licenses insurers and agents.

Common questions

What is the minimum car insurance in California?

Since January 1, 2025, California has required at least $30,000 bodily injury liability per person, $60,000 per accident and $15,000 property damage liability, up from the 15/30/5 limits in place since 1967. PIP is not required. Insurers must offer uninsured/underinsured motorist coverage, and you have to sign a waiver to decline it.

Is California a no-fault state?

California is an at-fault (tort) state: the driver who causes a crash is responsible for the other people's injuries and property damage, usually through their liability insurance.

Do employers in California need workers’ comp?

California employers must carry workers' comp even if they have only one employee, or get state approval to self-insure. Employers can't ask employees to help pay the premium. Coverage comes from competing insurers, not a monopolistic state fund.

What can a California homeowner do if no insurer will write the house?

The California FAIR Plan is the insurer of last resort for homes and businesses that can't get coverage from a regular insurer, and the Department of Insurance lists it under its wildfire resources. Wildfire is the main catastrophe exposure, and standard homeowners policies do not cover earthquake damage, which needs a separate policy.

Why are insurers declining homes in parts of California?

Wildfire risk models and rising rebuild costs have led some insurers to limit new business in high-risk areas.

Is earthquake insurance worth it in California?

It depends on your home's construction, location and ability to rebuild without it. Compare the deductible in dollars with your savings.

Sources

General information as of October 2026, not legal advice; confirm current rules with the agency.

Tell me what you need insured.

Home, car, business, trucks or something harder to place. One request, and I take it from there.

Alishahi Insurance · Saman Alishahi, independent insurance broker, 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210. General information, not a quote or a promise of coverage.

Insurance in California