California Auto Insurance Requirements & Rates
California requires 30/60/15 liability coverage and is an at-fault state.
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California at a Glance
30/60/15
Minimum liability limits, in thousands of dollars (per person / per accident / property)
At-fault
The at-fault driver's insurance pays for the damage they cause
Optional
PIP and uninsured motorist coverage are not required by law
Source: state DMV, insurance department and statute records, verified July 2026
State Requirements
California operates as a tort-based liability state where at-fault drivers are financially responsible for damages. The state mandates continuous proof of financial responsibility, enforced through electronic reporting between insurers and the DMV. Proposition 103, passed in 1988, uniquely requires insurers to obtain approval from the California Department of Insurance before implementing rate increases, making California one of the most heavily regulated insurance markets in the nation.
Bodily Injury Liability
Property Damage Liability
Uninsured Motorist Coverage
Cost Overview
about $102/mo
Average car insurance spending in California
Rate data: NAIC Auto Insurance Database, 2023
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Compare Auto Insurance RatesFrequently Asked Questions
Is California a no-fault insurance state?
No, California is a tort-based fault state where the at-fault driver's insurance pays for damages. You can file a claim against the other driver's liability coverage or sue them directly for damages exceeding their policy limits. This differs from no-fault states where each driver's own insurance pays regardless of who caused the accident.
How does Proposition 103 affect my California car insurance rates?
Proposition 103 requires insurers to get state approval before raising rates and prohibits using gender or marital status as rating factors. It mandates that driving safety record, annual mileage, and years of experience be the primary rating factors, while restricting credit score use. This regulation makes California one of the most consumer-protected insurance markets but can also limit competition and slow rate adjustments to market conditions.
Coverage Types
Liability Insurance
The foundation of California auto insurance, covering bodily injury and property damage you cause to others. Given the state's tort system and aggressive litigation environment, carrying limits of 100/300/100 or higher protects your assets from lawsuits that regularly exceed minimum coverage.
Full Coverage
Combines liability, collision, and comprehensive coverage to protect both your financial responsibility to others and your own vehicle. Typically required by lenders for financed or leased vehicles, and strongly recommended for cars worth more than $5,000.
Comprehensive Coverage
Covers non-collision damage to your vehicle including theft, vandalism, fire, falling objects, and weather events. Pays out regardless of fault, subject to your chosen deductible.
Uninsured Motorist Coverage
Protects you and your passengers when hit by a driver with no insurance or inadequate limits. Covers medical expenses, lost wages, and pain and suffering that the at-fault driver's insurance would normally pay.
Collision Coverage
Pays to repair or replace your vehicle after crashes with other cars or objects, regardless of who caused the accident. Particularly valuable for vehicles worth more than $3,000–$5,000 or when you need transportation reliability.
SR-22 Insurance
Not a separate coverage but a certificate of financial responsibility filed by your insurer to the California DMV. Required after DUI, driving without insurance, or serious violations, typically for 3 years.