Auto insurance in California: what’s required, and what isn’t

What California requires you to carry

How California enforces it

California verifies insurance electronically against carrier data and suspends registration on a lapse. The DMV requires evidence of coverage at registration and renewal, and law enforcement can require it at any stop.

How rates are set in California

California is an at-fault state. The driver responsible for a crash is responsible for the resulting injury and property damage, and their liability limits cap what the insurer pays on their behalf.

California regulates auto rates more tightly than any other state. Under Proposition 103, carriers must obtain approval before changing rates, and rating must be based primarily on three mandatory factors: driving safety record, annual miles driven, and years of driving experience. Other permitted factors must carry less weight, and credit history may not be used at all.

The practical consequence is a market that behaves differently from the rest of the country. Price movement is slower because increases require approval, and the spread between carriers for the same driver is narrower than in a competitive-rating state.

Credit-based insurance scores in California

California prohibits the use of credit history in auto insurance rating. Under Proposition 103, rates must be based primarily on three mandatory factors — driving safety record, annual miles driven and years of driving experience — with any other permitted factor weighted less heavily. Your credit file is not part of the calculation at all.

What actually moves your premium here

Comparing carriers in California

Report your annual mileage accurately and low if it genuinely is low. Because mileage is one of only three mandatory rating factors in California, it moves your premium more here than almost anywhere else.

If you have not renewed since the start of 2025, expect the new 30/60/15 floor to raise your premium — and check whether you are being quoted the new minimum or something above it, since the gap between them is now a real decision rather than a rounding error.

One habit matters more than any single carrier choice: re-check every year or two, and again after anything that changes your risk profile — a move across town, a new vehicle, a driver added or removed, or a violation ageing off your record. Carriers re-weight their rating factors continuously, so the one that priced you best three years ago is often not the one that prices you best today.

If you need an SR-22 in California

California requires an SR-22 filing after certain suspensions, including driving without insurance and DUI convictions. Your insurer files it with the DMV and must notify the state if the policy lapses. Confirm the period for your case with California DMV, since it runs from your reinstatement date.

California auto insurance FAQ

What is the minimum car insurance required in California?

Since 1 January 2025, $30,000 for bodily injury or death per person, $60,000 for bodily injury or death per accident, and $15,000 for property damage per accident.

Did California raise its insurance minimums?

Yes. SB 1107 raised the limits from 15/30/5 to 30/60/15 effective 1 January 2025 — bodily injury doubled and property damage tripled. It was the first update to California’s financial responsibility law in fifty-six years, and it pushed premiums up at renewal for drivers who had been carrying the old minimum.

Can California insurers use my credit score?

No. Under Proposition 103, California rates must be based primarily on your driving safety record, annual miles driven and years of driving experience. Credit history is not a permitted rating factor.

What is California Low Cost Auto Insurance?

A state programme offering lower-cost compliant coverage to income-eligible drivers. Its limits were not changed by the 2025 increase, which makes it a more attractive option than before for drivers who would otherwise struggle with the new minimums.

Does my California policy cover wildfire damage to my car?

Only if you carry comprehensive coverage, which the state minimum does not require. Wildfire, flood and mudslide damage to your own vehicle are all comprehensive claims.