In California the state required minimum liability limits are 15/30/5. These numbers stand for bodily injury liability in amounts of $15,000 for injury or death of 1 person per accident and $30,000 for injury or death of 2 or more persons per accident and then $5,000 of property damage liability per accident.

When financing a car you typically need to have liability limits of at least the state minimum amounts plus physical damage coverages of collision and comprehensive. Liability coverage covers others that you may damage in an accident while physical damage coverages cover your own vehicle if it is damaged.

If you have paid off your car and now own your own vehicle, then there is no longer a lien holder requiring you to have the physical damage coverages on the vehicle so you will need to decide if you want them on the car for the protection they give you. By removing these coverages you should be able to lower your insurance premium or you may want to keep these coverages and raise the deductibles to lower your rates.

As for liability coverages, California requires the same minimum amounts whether the car is owned or financed or leased. When you were paying on the car loan or lease the lien holder may have required higher liability limits but the state limits remain the same at 15/30/5. If your lien holder required higher liability limits then you should be able to lower them down to the state minimum amount if you desire for a reduction in your insurance premiums. If you already have the minimum amounts of car insurance liability then you cannot lower them below the state mandated minimum limits.