Skip to main content

The Basics of Auto Insurance in California

The Basics of Auto Insurance in California

While every state has mandatory guidelines regarding car and auto insurance coverage, the specifics vary by state.

Is it mandatory to have insurance in California?

Yes! You must show financial responsibility for any vehicle that you own, in case of injury to other people or damage to their property. Most people show financial responsibility by buying auto liability insurance. California law states, "All drivers and all owners of a motor vehicle shall at all times be able to establish financial responsibility and shall at all times carry in the vehicle evidence of the form of financial responsibility in effect for the vehicle."
If you do not have auto liability insurance, you can be fined, your license may be suspended, and your vehicle could be impounded.

What does my auto policy mean?

Your auto insurance policy is a contract between you and your insurance company. It explains:″ 
- Your costs.
- Your coverages—the different things your policy covers. 
- Your exclusions—the things your policy does not cover. 

What are the minimum limits for California? 

$15,000 bodily injury per person 
$30,000 bodily injury per accident 
$5,000 property damage per accident
Often referred to as "15/30/5"

How far back does California go to look at violation history?

3 years

Know Your Policy

It is important to be familiar with your auto policy before you need it. Read it carefully. The Declarations page is a useful summary of your policy.

- Call your agent, broker, or insurance company if you do not understand something in your policy.
- Tell your agent, broker, or insurance company if you sell or buy a car or have new drivers in your household. 
- Read your policy before you allow others to drive your car. Some drivers might be excluded from your policy. This means that the policy will not cover accidents when they are driving.
  •