California Minimum Auto Coverage

Car insurance is more than just a legal obligation in California. It’s a financial and personal safety net that can quite literally save lives. After a serious crash, medical bills, lost income, and vehicle repairs can escalate into overwhelming debt and losses. Adequate insurance ensures that you and others involved receive the medical care, transportation, and financial support needed to recover without sacrificing your family’s economic stability. It provides peace of mind knowing that if tragedy strikes, help is available when you need it most.

Beyond covering medical costs and vehicle damage, insurance offers a path to rebuilding your life after an accident. Uninsured motorist coverage, comprehensive protection, and collision insurance can help keep you afloat when others fail to act responsibly or when unexpected disasters occur. At Levinson Law Group, we’ve seen firsthand how proper insurance coverage can make the difference between recovery and hardship. Having enough insurance isn’t just smart, it’s one of the most important steps you can take to protect yourself, your loved ones, and your future.

Questions about your coverage? Call (619) 436-5000.

Why California Minimum Liability Coverage Matters

California car accidents are handled under a “fault” system, meaning the person responsible for causing a crash can be held financially liable for the resulting damages. To make sure drivers can pay for these losses, the state requires that everyone carry liability insurance or another approved form of financial responsibility. Understanding what is covered under liability insurance in California is an important part of making sure you have enough protection if an accident occurs.

Failure to maintain valid motor vehicle coverage can lead to severe penalties, including fines, vehicle impoundment, and suspension of your driver’s license or registration. More importantly, if you cause an accident and don’t have the proper car insurance, you may be personally responsible for paying the injured party’s medical expenses, lost wages, and property damage.

Updated California Minimum Car Insurance Coverage (2025)

For many years, California’s minimum motor vehicle insurance limits were the same. However, as vehicle repair and medical costs have increased dramatically over recent years, state lawmakers have passed Senate Bill 1107 (SB 1107), which significantly raised the minimum required coverage for drivers. This took effect on January 1, 2025, and under the new law, drivers must now carry liability insurance of at least:

• $30,000 for bodily injury or death to one person
• $60,000 for bodily injury or death to two or more people
• $15,000 for property damage

While the previous limits that were set in 1967 equaled $15,000 / $30,000 / $5,000, these limits are now:

• $30,000 for injury/death to one person.
• $60,000 for injury/death to more than one person.
• $15,000 for property damage.

SB 1107 will increase insurance requirements in 2035, when these limits will automatically increase again to $50,000/$100,000/$25,000 to better align with inflation and the rising cost of auto accidents and medical services.

Auto Insurance Requirements for California: Proof of Financial Responsibility

While most Californians meet their obligation by purchasing an auto insurance policy, there are a few alternative ways to prove financial responsibility under California Vehicle Code §16020:

• A $75,000 cash deposit with the California Department of Motor Vehicles (DMV)
• A surety bond of $75,000 from a licensed business in California
• A DMV-issued certificate of self-insurance is available to fleet or business owners who have multiple vehicles

However, for individual drivers, standard auto liability insurance remains the most common and practical option.

Recommended Optional Coverages Beyond California Minimum Auto Coverage

Meeting the California car insurance minimums only ensures legal compliance with state law. For a more complete breakdown of what attorneys actually recommend drivers carry, we encourage reviewing our guide on recommended auto insurance coverage in California. However, it doesn’t necessarily protect you from facing financial hardship after a crash. The reality is that the new California car insurance requirements, while higher, still may not be enough to cover serious accident damages, especially in cases where at-fault drivers are uninsured.

To stay protected, our team at Levinson Law Group recommends considering adding additional, optional coverages to your insurance policy, such as:

Uninsured and Underinsured Motorist Coverage

Many California drivers still take the risk of driving their vehicles without insurance. If you’re struck by an uninsured or underinsured driver, your own uninsured/underinsured motorist (UM/UIM) coverage will step in to help pay for your injuries and other economic losses. This coverage is typically inexpensive compared to the protection it provides.

Medical Payments (MedPay) Coverage

This optional insurance coverage pays for medical expenses you and your passengers incur, regardless of fault. It can help bridge the gap while your claim is pending.

Collision and Comprehensive Coverage

While not required by law, these two types of coverages protect your own vehicle from damage caused by collisions, theft, vandalism, natural disasters, and acts of God. Lenders typically require these two types of insurance for financed vehicles.

What Happens If You Drive Without Insurance in California

Driving without valid insurance in California is illegal and comes with serious consequences if you are in an accident or are pulled over and can’t provide proof of insurance. If you are caught without proof of the required insurance minimums, you can face:

• Fines ranging from $100 to $500 for a first offense (plus penalty assessments)
• License suspension and registration hold until proof of insurance is provided
• Vehicle impoundment at your expense
• Personal financial liability if you cause an accident

If you are involved in an accident while uninsured, the DMV can also choose to suspend your driver’s license for up to four years. You will also be required to file an SR-22 certificate to prove future financial responsibility before your driving privileges are reinstated.

Need help after an accident? Call (619) 436-5000 to speak with Levinson Law Group today.