What car insurance do I need to drive in California?
According to California Vehicle Code, or CVC, Section 16028, when you drive in California, you must carry either proof of liability insurance or an acceptable alternative, AND be able to present it to a law enforcement officer when requested to do so.
What kind of insurance do I need to drive in California legally?
You must meet the legally required amount of coverage, which is as follows:
$15,000 of bodily injury liability coverage per person
$30,000 of bodily injury liability coverage per accident
$5,000 of property damage liability coverage.
This is also often referred to as “15/30/5” policy limits. However, most would agree that being covered for higher amounts is better, since damages from accidents easily exceed these minimums.
What does “proof of financial responsibility” mean in California driving law?
Proof of financial responsibility most commonly means having liability insurance on your car at the required 15/30/5 policy limits. This is the most affordable and convenient option for the majority of people.
There are ways of satisfying California Vehicle Code 16028 without purchasing car insurance. Most states, including California, word the law so that you must demonstrate with evidence that you can cover your “financial responsibility” for your car and the risk that comes with enacting your driving privileges.
While this is typically shown to an officer through your car insurance, you can opt to instead visit your local DMV to prove your financial responsibility in other ways (more on that below). Once you prove your financial responsibility, you should receive a different kind of card which you can carry and present that to a police officer, which will legally satisfy their request to see your proof of financial responsibility for your car.
Will the kind of insurance needed to drive in California legally change? Will I need more insurance to drive in California in the future?
Yes.
From January 1, 2025 onward, the DMV has increased each required policy limit to reflect as below:
$30,000 of bodily injury liability coverage per person
$60,000 of bodily injury liability coverage per accident
$15,000 of property damage liability coverage
Additionally, if you opt to demonstrate financial responsibility through an alternative method rather than purchasing car insurance, you will be required to cover $75,000 for each method, whether it’d be through cash deposit to the DMV, surety bond, or a DMV-issued self-insurance certificate.
What are alternatives to obtaining insurance in order to drive legally?
According to the DMV, alternative ways to prove your financial responsibility under California law would be to:
Deposit $35,000 in cash to the DMV
Obtain a $35,000 surety bond.
Obtain a DMV-issued self-insurance certificate (DMV form 130)
Note that effective January 01, 2025, you must instead deposit or obtain a bond of minimum $75,000 as an alternative to obtaining car insurance.
What should I do if I can’t afford car insurance?
If you cannot afford normal car insurance that carries the 15/30/5 policy limits, you should check if you are eligible for California’s Low-Cost Automobile (CLCA) Insurance Program.
Can I live in California but carry insurance from another state?
Not if you intend on living in California as your primary residence.
When you obtain an insurance policy, it will cover you as you travel through all 50 states of America.
In California however, it is considered auto insurance fraud if:
You carry insurance from another state, AND
You are carrying insurance from another state because the rates are lower.
You may live in California and carry out-of-state insurance when:
You spend several months of the year in the outside state, or
You are attending college in that other state.
Penalties for this kind of auto insurance fraud range from:
Your license being suspended or revoked entirely,
Your insurance getting canceled, and even
You serving time in your county jail
Does Comprehensive, Collision, Med Pay, or Uninsured Motorist Bodily Injury insurance count for driving in California legally?
No. California law requires you to have liability insurance for the 15/30/5 policy limits, which compensates the other parties for injuries and property damage when you are the at-fault driver and therefore are liable for their damages.
Comprehensive, collision, and Med Pay insurance do NOT satisfy CVC 16028 requirements in order for you to drive legally in California. While you will be able to drive if these additional coverages are bundled into your liability insurance policy, they are unrelated (although potentially helpful).
While California recommends that you also carry Uninsured Motorist (UM) or Uninsured Motorist Bodily Injury (UMBI) coverage at the minimum below limits:
$15,000 per person
$30,000 per accident
This coverage is similarly unrelated to your minimum liability coverage requirements and can be rejected if you would like to, while staying street-legal to drive.
There ARE fines and penalties for not having car insurance while driving in California, as it is an infraction which police will definitely cite you for. If you would like to learn more about the fines and penalties for driving in California without having car insurance, click here: Is it a crime to drive in California without car insurance (2024 updates).
If you have been cited unfairly for not having car insurance, and would like to learn more about your options, don’t wait to Win! Book a free consult with Win Nguyen Law to speak with some of California’s most dedicated and experienced attorneys, at no cost to you!
