California Minimum Coverage Car Insurance: Requirements and Costs (2024) (2024)

FAQs

California Minimum Coverage Car Insurance: Requirements and Costs (2024)? ›

California Minimum Coverage Car Insurance: Requirements and Costs (2024) California's minimum coverage liability limits are 15/30/5. On average, the annual cost for state minimum car insurance in California is $599, which amounts to about $50 per month.

Here are the minimum liability insurance requirements (per California Insurance Code §11580.1b): $15,000 for injury/death to one person. $30,000 for injury/death to more than one person. $5,000 for damage to property.

For policies issued or renewed after January 1, 2025 the minimum limits for private passenger automobile insurance will increase to $30,000 per person, $60,000 per accident, and $15,000 for property damage. As noted, this law will not apply to policies issued or renewed in 2024.

Most financial experts recommend raising your liability to $50,000 per person and $100,000 per accident if you have few assets. With more assets — like a house, expensive car, or large amounts of savings — experts recommend bumping your coverage up to at least $100,000 per person and $300,000 per accident.

California's minimum car insurance requirements are $15,000 for bodily injury liability per person, $30,000 for bodily injury liability per accident, and $5,000 for property damage liability per accident or 15/30/5. How do I obtain car insurance in California if I'm a high-risk driver?

The average cost of full-coverage car insurance in California is $193 per month or $2,313 per year. It's about 15.2% more expensive than the national average of $2,008, according to our research, and the cost of California car insurance went up by 10.7% from 2022 to 2023 based on our rate data.

Car insurance in California is expensive because the state has multiple densely populated, high-crime urban areas. In California, you can expect to pay approximately $4,556 per year for full coverage car insurance or $1,291 per year for minimum coverage.

Overall, the average annual car insurance premium went up about 18% from 2023 to 2024 in California, according to a study from Bankrate.com.

The insurance companies cite the increasing frequency of natural disasters, rising costs of construction and inflation as the cause. The departure may mean more Californias only option for insurance in the state FAIR Plan — an insurer of last resort.

The grace period for new car insurance in California is 30 days, which is the amount of time you have after acquiring a vehicle to purchase insurance and present evidence of current coverage to the California DMV.

What is the most basic car insurance coverage? ›

Basic car insurance is a policy that only includes liability coverage. It helps cover the damage you may cause to other people and their property. That can include medical bills, repair or replacement of property and legal fallout. Almost every state has minimum basic auto insurance limits for their drivers.

USAA, Nationwide, Travelers, Erie, Geico and Progressive are the cheapest car insurance companies nationwide, according to our analysis.

In 2023, major players like Geico, Progressive, and Farmers have scaled back or ceased operations in California and Florida's auto insurance markets due to rising costs. AmGUARD Insurance and Falls Lake Insurance are discontinuing their homeowners' insurance programs in the state.

Limits: Liability Coverage Only

$15,000/$30,000 Bodily Injury. $5,000 Property Damage. $2,000 Medical Payments. $15,000/$30,000 Uninsured/Underinsured Motorist. $3,500 Uninsured Motorist - Property Damage.

If You Are at Fault

The other driver may file a claim with their own auto insurer, but if they don't have enough coverage for the damages, they may file a lawsuit against you. If you do not have any assets, it is less likely that the other driver will sue you due to the time and expense.

How much auto liability insurance does California law require? California's financial responsibility laws require drivers to maintain at least 15/30/5 liability coverage. This liability insurance is mandatory for all owners and drivers of motor vehicles in California.

California's state minimum car insurance requirements dictate that drivers need $15,000 in bodily injury liability per person, $30,000 per accident and $5,000 in property damage liability. California operates under an at-fault system, so having minimum coverage car insurance is a legal necessity.

First-time offenders will need to pay a fine between $100 and $200 plus penalty assessment fees. Penalty assessment fees are variable, and there may be several assessments added. Typically, the assessments cost double or triple the fine amount.