To drive legally in California, you must carry liability insurance of at least $30,000 per person and $60,000 per accident for bodily injury, plus $15,000 for property damage — the current California car insurance requirements as of January 1, 2025. Vehicle Code Section 16020 makes this financial responsibility a condition of driving or owning a vehicle in the state, and proof of it has to be in the car with you every time you drive.1California Legislative Information. California Vehicle Code VEH 16020
Minimum Liability Limits
California doubled its minimum limits at the start of 2025. Any policy issued or renewed on or after January 1, 2025 must include:
- $30,000 for bodily injury or death of one person in a single accident
- $60,000 for bodily injury or death of all people in a single accident
- $15,000 for damage to another person’s property in a single accident
These amounts, sometimes called the 30/60/15 rule, are set by Vehicle Code Section 16056. Section 16451 requires the policy to cover accidents anywhere in the continental United States, not just inside California.2California Legislative Information. California Vehicle Code VEH 16451
A second increase is already on the books. For policies issued or renewed on or after January 1, 2035, the minimums rise to $50,000 per person, $100,000 per accident, and $25,000 for property damage.3California Legislative Information. California Vehicle Code VEH 16056
These are floors. If you cause an accident and the damages exceed your limits, you are personally responsible for the difference, and a single hospital stay can outrun a $30,000 bodily injury limit quickly.
Uninsured Motorist Coverage
Every liability policy sold in California must include uninsured motorist coverage unless you decline it in writing. It pays for your injuries when the at-fault driver has no insurance, has too little insurance, or cannot be identified after a hit-and-run.
Under Insurance Code Section 11580.2, insurers must offer this coverage at limits matching the bodily injury limits on your policy, though the required offer is capped at $30,000 per person and $60,000 per accident. You can waive it or reduce it by signed agreement, but not below the state’s minimum financial responsibility limits.4California Legislative Information. California Code Insurance Code INS 11580.2
Alternatives to Buying a Policy
A standard policy is the usual path, but Vehicle Code Section 16021 recognizes three other ways to prove financial responsibility.5California Legislative Information. California Vehicle Code VEH 16021
You can deposit cash with the DMV in the amount set by Section 16056, which the department holds as a guarantee for any judgment against you.6California Legislative Information. California Code Vehicle Code 16054.2 You can post a surety bond from a company licensed in California that guarantees payment up to the required limits. Or, if you have 25 or more vehicles registered in your name and can satisfy the DMV of your ability to pay judgments equal to the minimum limits, you can apply for a certificate of self-insurance.7Justia. California Vehicle Code 16052-16053 – Evidence of Financial Responsibility Government vehicles are exempt from the standard insurance requirement because the government entity carries its own financial responsibility.
For most individual drivers, these alternatives are impractical. Fleet operators and some high-net-worth owners are the usual users.
Proof You Must Carry in the Car
Vehicle Code Section 16020 requires evidence of financial responsibility to be in the vehicle at all times. For most drivers that means the insurance ID card the insurer provides, showing the company name, policy number, and effective dates.
Electronic proof is accepted. Showing your insurance card on a phone or tablet during a traffic stop is treated the same as a paper card as long as it contains the same information.8Legal Information Institute. 13 CCR 82.00 – Insurance Card If you meet the requirement through a cash deposit, surety bond, or self-insurance certificate, you have to carry the DMV-issued authorization or certificate instead.
You must be able to produce this proof during any traffic stop, exchange it with other drivers at an accident scene, include it on a Report of Traffic Accident (SR-1) if anyone is injured or property damage exceeds $1,000, and have it on file when you register or renew a vehicle.9California Department of Motor Vehicles. Report of Traffic Accident Occurring in California (SR-1)
Penalties and Registration Suspension
A first offense for driving without valid financial responsibility carries a fine of $100 to $200 under Vehicle Code Section 16029, before penalty assessments that can multiply the total several times over. A second or later offense within three years raises the base fine to $200 to $500. The court cannot go below the statutory minimum unless it finds you genuinely cannot pay, and it may order the vehicle impounded.10California Legislative Information. California Vehicle Code VEH 16029
Your registration is at separate risk. If your insurer cancels your policy and you do not submit proof of replacement coverage within 45 days, the DMV suspends the registration. To reinstate it, you have to provide proof of new insurance and pay a $14 fee.11California Department of Motor Vehicles. Suspended Registration Reinstatement
The longer-term cost is what a lapse does to your premiums. Even a short gap in coverage marks you as higher risk. Standard carriers may quote sharply higher rates, classify you as high-risk, or decline to renew, leaving non-standard insurers as the only option.
SR-22 Filings After Serious Violations
An SR-22 is a certificate your insurer files with the DMV confirming you carry at least the minimum liability coverage. It is not a separate type of insurance. The DMV requires one after certain violations, including:
- A DUI or wet-reckless conviction
- Being involved in an accident while uninsured
- Accumulating enough points to be declared a negligent operator
You must maintain continuous SR-22 coverage for three years from the triggering event, at the current 30/60/15 minimums or higher. Before the DMV reinstates your driving privilege, you also pay a $125 reissue fee. If the policy lapses during the three years, the insurer notifies the DMV and your license is suspended again.
Drivers who need an SR-22 but do not own a car can meet the requirement with a non-owner policy. Non-owner insurance provides liability coverage while you drive vehicles you do not own, acts as secondary coverage behind the vehicle owner’s policy, and does not cover damage to the vehicle you are driving. Business use and other household members are generally excluded.
Rideshare and Delivery Driving
If you drive for a platform like Uber, Lyft, or DoorDash, a standard personal auto policy usually will not cover you while the app is on. Personal policies typically exclude commercial livery use, and the exclusion applies the moment you log in, before you accept any ride or delivery.
The California Public Utilities Commission divides rideshare coverage into three periods. In Period 1, when the app is on but you have not accepted a match, the company must provide primary liability of at least $50,000 per person, $100,000 per accident, and $30,000 for property damage, plus $200,000 in excess coverage per occurrence. In Period 2, from the moment you accept a match until pickup, the company must carry $1,000,000 in primary commercial liability. Period 3, with a passenger in the vehicle, keeps the $1,000,000 primary limit and adds $1,000,000 in uninsured and underinsured motorist coverage.12California Public Utilities Commission. Insurance Requirements for TNCs
Period 1 is where the biggest gap sits, because personal coverage is off and the company’s limits are lower than in Periods 2 and 3. A rideshare endorsement added to your personal policy usually bridges that gap for far less than a commercial policy. Delivery drivers face the same personal-policy exclusion, and not every delivery platform provides equivalent gap coverage, so check the platform’s insurance terms and confirm with your own insurer before starting.
Low Cost Automobile Insurance for Income-Eligible Drivers
The California Low Cost Automobile Insurance Program (CLCA), authorized by Insurance Code Section 11629.7, offers reduced-rate liability coverage to eligible residents.13California Legislative Information. California Code Insurance Code 11629.7 To qualify, you must:
- Hold a valid California driver’s license
- Be at least 16 years old
- Own a vehicle valued at $25,000 or less
- Meet income eligibility guidelines based on household size
- Have a good driving record: no more than one at-fault property-damage-only accident or one point for a moving violation in the past three years, no at-fault accidents involving bodily injury or death in the past three years, and no vehicle-related felony or misdemeanor convictions
CLCA policies provide $10,000 for bodily injury per person, $20,000 per accident, and $3,000 for property damage.14CA.gov. California Low Cost Auto Those limits sit below the state’s standard 30/60/15 minimums, but the program is authorized by statute to operate at these levels, and enrolling satisfies the financial responsibility requirement. Current income thresholds and the application are available through the program’s official site at mylowcostauto.com.