California Car Insurance Laws

Moving from one state to another involves a lot of changes. One of those changes affects one of the biggest parts of most people's budgets, car insurance. Car insurance laws in California set minimum requirements for the auto insurance coverages a standard driver must have:

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California has lower required coverage limits for members of the California Automobile Assigned Risk Plan.

$10,000 Bodily Injury Liability (per person)
$20,000 Bodily Injury Liability (per accident)
$3,000 Property Damage Liability

Insurance companies in California offer Uninsured Motorist Coverage, but it is not required by law.

California is an at-fault state and assigns fault in an accident to one party. The California court system mandates that the party found to be at fault, and their insurance company must be held responsible for the damages incurred in the accident. California allows a statute of limitations of three years for legal and insurance claims against someone at fault in an accident.

California has a Financial Responsibility law. If a driver chooses not to purchase auto insurance, they need to prove they are financially responsible in one of three ways:

1. Depositing $35,000 in cash with the California Department of Motor Vehicles (DMV)
2. A certificate of self-insurance issued by the DMV to owners of fleets of more than 25 vehicles
3. A $35,000 surety bond that is obtained from a licensed California insurance company.