State coverage guide

California Auto Insurance Requirements

California is an at-fault (tort) state with some of the country’s most closely regulated auto insurance rules. Drivers must carry liability coverage, and Proposition 103 limits how insurers can rate you.

Written by

Marcus Reyes

Coverage Analyst · CPCU

Reviewed by

Priya Nadkarni

Managing Editor · Licensed P&C Agent

Last updated June 2024

What California requires

California law requires every driver to carry at least 15/30/5 liability coverage — $15,000 for injury to one person, $30,000 per accident, and $5,000 for property damage. These are the legal minimum; they are frequently too low to cover a serious accident.

How Proposition 103 shapes your rate

California prohibits insurers from using your credit score to set auto rates, and prioritizes driving record, annual mileage, and years of experience instead. Rate changes require regulatory approval, which is why California pricing can move differently from the rest of the country.

Sources

  1. 1.California DMV — Insurance requirements

California rates

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