Liability Insurance in California: What You Need and How Much It Costs
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Written byJanet Berry-Johnson
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Janet Berry-Johnson, CPA, is a freelance writer with a background in accounting and income tax planning and preparation. She's been writing for Compare.com since 2023 and has also appeared on various business and finance sites, including LendingTree, Chime, Insurify, Forbes, and WSJ. She’s passionate about making complicated financial topics accessible to readers.
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Edited byNick Versaw
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Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
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Table of contents
In California, state law requires drivers to maintain at least a certain amount of liability insurance to legally drive. These minimum limits will increase soon, so it’s more important than ever to understand your options.
Our research found that the average cost of minimum-liability coverage is $113 per month statewide, but you may find a better deal by shopping around and comparing quotes.
In this article, we’ll break down California’s minimum car insurance requirements, go over the state’s average rates for different types of drivers and locations, and provide tips for finding affordable coverage.
California’s Minimum Car Insurance Requirements
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California’s current minimum car insurance requirements help ensure all drivers have enough liability coverage to pay out if they cause an accident. Currently, all California drivers must have at least:
$15,000 in bodily injury (BI) liability coverage per person
$30,000 in BI coverage per accident
$5,000 in property damage (PD) liability coverage
Informally, these are known as 15/30/5 limits.
That said, the California State Legislature recently passed a new law — SB 1107 — that will increase those minimum limits. As of Jan. 1, 2025, the new minimums will be 30/60/15. These higher limits offer better protection, but they’ll also come with higher premiums for minimum coverage.
What You Can Expect to Pay for State-Minimum Coverage
The rates for state-minimum coverage in California vary significantly based on several factors. Insurance companies look at things like your age, driving record, and location to determine your premium.
For example, younger drivers and people with a history of accidents tend to pay higher rates, while experienced drivers with clean records get more affordable premiums.
Here’s a look at the average monthly rates for different driver types, according to Compare.com data.
Driver Type  | Average Monthly Premium for Minimum Coverage |
|---|---|
| All California drivers | $113 |
| Teens | $179 |
| Seniors | $88 |
| Californians with a recent ticket | $160 |
| Californians with a recent accident | $153 |
| Californians with a recent DUI | $162 |
| Los Angeles residents | $116 |
| San Diego residents | $101 |
| San Francisco residents | $132 |
The statewide average car insurance premium for all drivers is $113 per month, but teens and drivers with a recent conviction for driving under the influence (DUI) pay much more. On the other hand, senior drivers pay a lot less than the statewide average.
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Is Minimum Coverage Right for You?
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While California law requires you to maintain at least the minimum coverage limits to drive legally, most experts think it’s a good idea to purchase higher coverage if it’s within your budget.
For example, Kiplinger, a publisher of personal finance advice, recommends purchasing a 100/300/100 policy to protect yourself financially if you’re involved in a serious accident — and 250/500/250 if you have significant assets.
You should really only buy minimum auto insurance coverage if you’re on a tight budget, don’t have a lot of assets to protect, and don’t drive often.
Cheapest California Insurers for Minimum Coverage
Just as rates vary from driver to driver, they can also differ significantly between insurance companies. Insurers use different formulas to assess risk, which is why one company may offer you a much lower rate than another for the same coverage. Factors like claims history, overhead costs, and target customer base all influence these changes.
The table below showcases the five cheapest insurers for state-minimum coverage in California, based on Compare.com data.
Company | Average Monthly Premium | Average Annual Savings* |
|---|---|---|
| Clearcover | $67 | $552 |
| Mercury | $85 | $336 |
| Anchor General | $92 | $252 |
| Safeco | $100 | $156 |
| USAA | $100 | $156 |
*Savings are calculated based on the difference between each insurer’s average monthly premium and the statewide average for all insurers.
We found that Clearcover offers the lowest average rate, at $67 per month. But keep in mind that these are just averages — your actual rate may differ depending on your age, location, driving history, and other factors. That’s why it’s essential to compare multiple personalized quotes to ensure you get the best possible deal.
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How to Get Cheaper Minimum Coverage in California
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Finding affordable minimum coverage in California is possible — if you know where to look. Many insurance companies offer discounts, and you can take specific actions to lower your premiums.
Here are a few ways to save on state-minimum coverage:
Take advantage of low-mileage discounts. Many cities in California are known for their car cultures, but the San Francisco-Oakland-Berkeley area has excellent public transportation. Consider whether you qualify for a low-mileage discount if you own a car but frequently take public transportation.
Ask about other discounts. Many insurance companies offer discounts for installing anti-theft devices, taking a defensive driving course, or maintaining good grades if you have a student who drives on your policy. Reach out to your agent to see if you qualify for any additional savings.
Compare quotes from multiple insurers. Prices can vary dramatically from company to company. Shopping around and comparing quotes from several insurers can ensure you find the best deal.
Other Car Insurance Coverages to Consider
A liability-only auto policy may not provide enough protection, even if you opt for higher limits. Depending on your needs and financial situation, you might want to consider buying the following coverages to better protect yourself and your assets:
Collision: Pays your car repair bills if you’re at fault in an accident.
Comprehensive: Pays for damage to your car after a non-collision claim, like theft, vandalism, hail, or fire.
Uninsured/underinsured motorist: Pays your medical bills and the cost of repairing your vehicle if a driver hits you and doesn’t have insurance or doesn’t have sufficient limits. Uninsured drivers are a big concern in California, where 17% of drivers across the state don’t have insurance, according to the Insurance Information Institute (Triple-I).
Medical payments coverage: Helps cover medical expenses for you and your passengers after a car accident, regardless of who was at fault.
Roadside assistance: Provides towing and assistance if you break down on California’s busy roads and highways.
Penalties for Driving Without Insurance in California
You may face serious penalties that affect both your wallet and your driving privileges if the state catches you driving without enough insurance to meet the minimum requirements. Fines are $200 for a first offense and $500 for a second offense.
In addition to fines, the police may impound your vehicle, and the state may suspend your license until you provide proof of insurance.
The California DMV may suspend your driving privileges if you’re involved in a collision and don’t have proper insurance coverage, regardless of who caused the accident. You can get your license back after one year, but you’ll need to file an SR-22 form for the next three years. Your insurance company will file this form with the state proving you have insurance and confirming it’ll notify the state if your coverage lapses for any reason.
Your insurance rates may go up if your insurance company has to issue an SR-22.
California Car Insurance Laws You Should Know About
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State car insurance laws can change at any time. It’s your responsibility to be aware of any changes that could affect you and ensure you have adequate coverage.
Fortunately, California has programs to help people struggling to afford auto insurance. Here are some California-specific laws and programs that you should know about.
California’s Low Cost Automobile Insurance Program
Low-income drivers can qualify for California’s Low Cost Auto Insurance Program (CLCA), which satisfies the state’s financial responsibility laws. Coverage may be cheaper than having the same coverage with a standard insurance company.
California Automobile Assigned Risk Plan
The California Automobile Assigned Risk Plan (CAARP) is for high-risk drivers who’ve been turned down by at least one insurance company due to their driving record. These policies meet the state’s auto insurance requirements but are usually more expensive than an equivalent car insurance policy on the standard market.
The Protect California Drivers Act
The state legislature passed the Protect California Drivers Act (SB 1107) in 2022, amending California Vehicle Code 16056 and approving a future increase to California’s minimum coverage requirements. The current mandatory minimums have been in place since 1967.
Starting on Jan. 1, 2025, California drivers must have higher liability limits of:
$30,000 per person for bodily injury
$60,000 per accident for bodily injury
$15,000 per accident for property damage
FAQs About Minimum Liability Insurance in California
Here are answers to a few frequently asked questions about California’s minimum insurance requirements to help you find the right coverage for you.
How much car insurance does California require?
California currently requires minimum liability limits of $15,000 for bodily injury for one person, $30,000 for bodily injury per accident, and $5,000 for property damage. But these minimum limits increase to 30/60/15 on Jan. 1, 2025.
Is California a no-fault state?
No, California isn't a no-fault state; it’s an at-fault or "tort" state. The driver who causes an accident is responsible for covering damages and injuries.
How long does California require an SR-22 for?
California drivers who don’t have active insurance when they’re involved in an accident need to file an SR-22 form for three years.
Which company has the cheapest SR-22 insurance in California?
Clearcover offers the cheapest average rates for California drivers with a DUI, according to Compare.com data. The company’s average monthly premium is just $126 for these drivers. That said, your rates may vary depending on your location, age, and other factors.
Data Methodology:
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
Sources:
Kiplinger, “What Is Liability Insurance and What Does It Cover?” accessed September 12, 2024.
Insurance Information Institute, “Nine ways to lower your auto insurance costs,” accessed September 12, 2024.
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Janet Berry-JohnsonPersonal Finance Writer
Janet Berry-Johnson, CPA, is a freelance writer with a background in accounting and income tax planning and preparation. She's been writing for Compare.com since 2023 and has also appeared on various business and finance sites, including LendingTree, Chime, Insurify, Forbes, and WSJ. She’s passionate about making complicated financial topics accessible to readers.
Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
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