Minimum Car Insurance in California

Insurance (financial responsibility) is required on every vehicle operated or parked on California roads. Minimum liability limits are $30,000 for injury or death of one person, $60,000 for injury or death of more than one person, and $15,000 for property damage (30/60/15) (Cal. Ins. Code § 11580.1b). Alternatives to a liability policy are a $75,000 cash deposit with the DMV, a $75,000 surety bond from a company licensed in California, or a DMV-issued self-insurance certificate. Collision and comprehensive coverage do not meet the requirement. Income-eligible good drivers may qualify for the California Low Cost Automobile Insurance Program, whose lower limits ($10,000/$20,000/$3,000) satisfy the financial responsibility law.

California is an at-fault (tort) state. Liability coverage pays for injuries and damage the insured causes to others in accidents that are the insured's fault; when both drivers share fault, the police, insurers or courts decide each driver's percentage of responsibility (comparative negligence). Medical payments coverage, which pays regardless of fault, is optional. An insurer may surcharge a policyholder's premium at renewal only if the policyholder was at least 51% at fault.

Insurers must offer uninsured/underinsured motorist coverage; a policyholder who does not want it must sign a waiver stating it was offered and turned down. Uninsured motorist bodily injury limits are the same as the policy's liability limits. Uninsured motorist property damage pays up to $3,500 for damage to your car, only when the uninsured driver is identified. A collision deductible waiver is also available.