Car Insurance in California
Car insurance in California is required by law, and as of January 1, 2025 the state raised its minimum liability limits for the first time in decades. Drivers now need at least 30/60/15 in coverage to register and legally operate a vehicle.
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California at a glance
Data as of 2023Average cost
$1,225/yr
≈ $102/mo
vs U.S. average
-4%
below the national avg of $1,282/yr
Required minimums
30/60/15
BI / BI per accident / PD ($K)
Source: NAIC (2023). Annual average expenditure per insured vehicle.
Car insurance in California is required by law, and as of January 1, 2025 the state raised its minimum liability limits for the first time in decades. Drivers now need at least 30/60/15 in coverage to register and legally operate a vehicle.
California is an at-fault (tort) state, which means the driver responsible for a crash — and their insurer — pays for the resulting injuries and damage. Comparing quotes across carriers is the simplest way to meet the new minimums without overpaying.
California minimum car insurance requirements
California requires bodily injury liability of $30,000 per person and $60,000 per accident, plus $15,000 in property damage liability. These are minimums — many drivers carry higher limits because a serious accident can easily exceed them, leaving you personally responsible for the difference.
Minimums increased on January 1, 2025 (previously 15/30/5) under SB 1107.
How much does car insurance cost in California?
The average driver in California pays $1,225 per year for auto insurance — that's 4% below the U.S. national average of $1,282/yr. Lower-than-average rates often reflect lower traffic density, fewer claims per insured vehicle, or less stringent coverage requirements.
California vs the national average
4% below the national average of $1,282/yr.
Source: NAIC (2023). Annual average expenditure per insured vehicle.
How California premiums have changed since 2019
Auto insurance costs in California have risen 16% over the past five years. The 2022–2023 jump mirrors a national trend: rising repair costs (vehicle complexity and parts inflation), more frequent severe accidents, and higher litigation costs pushed premiums up faster than overall inflation.
5-year trend: California vs national average
California is up 16% from $1,052 in 2019 to $1,225 in 2023.
Source: NAIC Auto Insurance Database Report (2022/2023), Table 4 — Average Expenditure.
Types of car insurance coverage
A California policy is built from a few core coverages. Liability is required; the rest are optional but often worth it.
| Coverage | What it covers | Required? |
|---|---|---|
| Liability | Injuries and property damage you cause to others | Required (state minimum) |
| Collision | Repairs to your own car after a crash | Optional* |
| Comprehensive | Theft, fire, weather, vandalism, animal strikes | Optional* |
| Uninsured motorist | Your costs if the at-fault driver has no insurance | Varies by state |
*Collision and comprehensive are usually required by your lender if you lease or finance your vehicle.
Driving without car insurance in California
Driving uninsured in California can be costly. Penalties typically include fines, suspension of your license and registration, and reinstatement fees. If you cause an accident while uninsured, you can also be held personally responsible for the other party's injuries and damage. You may also be required to file an SR-22 certificate to reinstate your license.
How to find cheaper car insurance in California
Rates for the same driver can vary widely between insurers in California, so comparing several quotes is the most effective way to save. A few other ways to lower your premium:
- Raise your deductible if you can cover it in a claim
- Ask about every discount you qualify for
- Keep a clean driving record and good credit (where the state allows it as a rating factor)
- Reconsider collision and comprehensive on an older vehicle
For more, see our guides on how to lower your premium and what affects your rate.
Coverage requirements last verified May 28, 2026. Always confirm current minimums with your state’s Department of Insurance.
California car insurance FAQs
Common questions about auto insurance in California
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