It’s not your imagination; car insurance rates have continuously ticked higher than in recent years. On average, vehicle insurance rates have increased by approximately 31% from 2018 to 2023, according to data from Carinsurance.com.
Californians pay an average of $2,422 annually for car insurance, making it one of the most expensive states in the U.S. With inflation and other national economic impacts hitting most households, personal budget cuts are more crucial than ever.
While it may seem logical to stop paying some of your high expenses, you may want to think twice about your car insurance bill. When considering whether driving without insurance in California is a good idea or not — even temporarily — it’s essential to weigh the risks, penalties and legalities.
Is it illegal to not have car insurance in California?
You must have proof of financial responsibility (insurance) when you drive in the state of California. Drivers must carry liability insurance with the minimum following limits:
- $30,000 for a single death or injury.
- $60,000 for death or injury to more than one person.
- $15,000 for property damage.
Additionally, drivers must provide proof of financial responsibility if they’re involved in a collision, moving violation or other driving incident, or if requested by law enforcement.
What happens if you drive without car insurance in California?
Choosing to drive without insurance in California means you’re violating the law. The penalty for driving without vehicle insurance can include suspension of your driver’s license, fees and fines, and in some instances, impoundment of your vehicle. What occurs on the road while you’re driving without a license also determines your consequences.
Additionally, when you decide to reinstate your vehicle insurance, you can anticipate an increase in insurance premiums. You have not only increased your risk on the road, but you’re now a riskier driver to cover.
How much do insurance rates increase after driving without insurance in California?
If you drive without insurance in California, your insurance premiums will increase, but the exact amount depends on your car insurer.
On average, you could pay about 50% more. However, some insurers may increase premiums by as much as Nationwide’s 87% or $2,441 more per year on average, or decrease them by as much as CSAA Insurance (AAA) by 27% or $698 more annually.
No matter how you look at it, you can expect to pay hundreds, if not thousands, more a year for opting not to drive with insurance in California. See how much your insurance rates could increase if you drive without insurance in California.
| Company | Average rates | Rates after driving without insurance | $ increase | % increase |
|---|---|---|---|---|
| Mercury Insurance | $2,031 | $2,893 | $862 | 42% |
| Geico | $1,919 | $3,123 | $1,204 | 63% |
| CSAA Insurance (AAA) | $2,600 | $3,298 | $698 | 27% |
| Progressive | $2,179 | $3,600 | $1,421 | 65% |
| Travelers | $2,460 | $3,699 | $1,239 | 50% |
| Allstate | $2,627 | $3,807 | $1,181 | 45% |
| Auto Club Enterprises (AAA) | $2,466 | $3,892 | $1,426 | 58% |
| State Farm | $2,701 | $4,071 | $1,370 | 51% |
| Farmers | $3,035 | $4,309 | $1,274 | 42% |
| Nationwide | $2,799 | $5,240 | $2,441 | 87% |
| USAA* | $1,827 | $2,229 | $402 | 22% |
*USAA is only available for military community members and their families.
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What are the risks of driving without car insurance in California?
Driving without car insurance in California doesn’t mean you’re just going to get a ticket if you get pulled over. The risks you’re taking driving without insurance will likely impact your finances, driving record and car insurance premium. In some instances, you could potentially have your license suspended.
There are specific penalties for driving without insurance in California, which are based on how long and often you’ve been driving without insurance, and if you’ve been involved in an accident without coverage.
Penalties for driving without insurance in California
Penalties for the first offense in California
While you may initially consider the savings you will reap by skipping your monthly car insurance bill, you’ll end up paying more over time if you’re found to be driving without insurance in California.
For first offenses, drivers without insurance will receive a $100 to $200 fine. The total cost for the infraction could be up to $450 based on the assessment of the violation, and there’s a chance you’ll have your vehicle impounded.
You can also expect an increase in your car insurance rates by at least 27%, if not more, according to CarInsurance.com data.
Penalties for the second offense in California
Continuing to drive without insurance in California will increase your fines and penalty assessments, and your license could be revoked.
For subsequent offenses, you can expect to receive a fine between $200 and $500, with penalty assessments increasing the total fine to between $520 and $1,300. Your license could be suspended for up to four years, especially if you’ve been involved in a collision, regardless of fault.
Additionally, your car insurer may require that you carry an SR–22. This form is required for high-risk drivers and will increase your average car insurance to about $2,160 annually or $180 monthly, and may be more based on the insurer.
What happens if you drive without insurance and get into an accident in California?
Car insurance premiums are determined by specific factors, such as driving history, credit, age, gender and where you live. Insurers look at each driver under the presumption of how risky they may appear based on these personal factors.
While an accident on your record as an insured driver may increase your rates slightly, if you have one on your record while driving without car insurance, you could be looking at a sharp increase in your premiums, fees and fines, and a significant impact on your driver history for many years.
Penalties for driving without insurance in an accident in California
One of the reasons car insurance has spiked so high in recent years is due to the increase in accidents, costly repairs and distracted driving. With the shift in driver behavior and the increase of accident risk, drivers must be more diligent than ever while behind the wheel. If you choose to drive without insurance and are involved in an accident, you could face some steep consequences.
- Fines and penalty assessment fees: First-time offenders of an accident without insurance may face fines ranging from $100 to $200 and penalty assessments of up to $520. Fines and fees could add an additional $1,300 for those with subsequent accidents without insurance.
- License suspension: After an accident, you’ll be asked for your insurance information to file a claim. If you do not have proof of financial obligation in California, you are looking at a suspension of your license.
If this is your first offense, you’ll receive at least a one-year suspension. Your license may be suspended for up to four years for subsequent accidents without insurance. You will be offered 10 days to attend a hearing to review your case.
- SR-22 required: After an accident without insurance in California, you will be considered a high-risk driver. You will be required to file an SR-22; in some instances, your driving may be restricted to and from work or other specified parameters.
- Vehicle impoundment: If you’re found without car insurance at the accident scene, your vehicle may be impounded until you provide proof of insurance. In the meantime, you will also pay for towing/storage fees for your impounded vehicle.
How age and gender affect penalties and insurance rates for driving without insurance in California
In California, gender is prohibited as a rating factor.
Car insurance rates are also set by considering a person’s gender, age and credit rating. These factors help insurers assess the risk associated with a driver.
In general, teens and young drivers and senior drivers are considered a higher risk due to more claims in these demographics, inexperience behind the wheel and other failing criteria such as eyesight and slower response rates.
How do you get cheap car insurance when you are uninsured in California?
Finding cheap car insurance in California is a good option if you’re considering ways to reduce your monthly bill and stay insured. The California Department of Insurance offers a state-sponsored insurance option, California’s Low Cost Auto (CLCA) Insurance program, which aims to ensure all drivers have some form of auto insurance.
The program provides liability-only auto insurance with limits of $10,000 bodily injury or death per person, $20,000 bodily injury or death per accident and $3,000 property damage liability per accident. Drivers can add $1,000 medical payments per person, $10,000 uninsured motorist bodily injury per person and $20,000 uninsured motorist bodily injury per accident for an additional cost of $39 to $79 per year. This program doesn’t offer comprehensive or collision coverage, which covers repairs to your vehicle after an accident.
The CLCA program requires that drivers have the following:
- Valid California driver’s license
- Good driving record
- Own a vehicle (valued at $25,000 or less)
- Meet income eligibility guidelines
- Be at least 16 years of age (applicants younger than 18 must be legally emancipated)
Mercury Insurance is an affordable insurance provider in California with an average annual rate of $2,893. You may also find lower options in the state by calling around and price shopping. When comparing rates, be sure to also inquire about available discount programs, which can help you save potentially hundreds of dollars per month.
| State | California |
| Cheapest company | Mercury Insurance |
| Annual rate | $2,893 |
| 6-month rate | $1,446 |
| Monthly rate | $241 |
California car insurance laws — know before you drive
California requires all drivers to carry at least liability insurance before they head out on the road. The 2025 minimum requirements are 30/60/15: $30,000 for injury or death to one person, $60,000 for injury or death to multiple people and $15,000 for property damage.
California’s state minimum coverage costs $551 annually, but only provides basic protection for drivers. This could mean that if you’re involved in an accident, you may have a hefty bill to pay out of pocket. However, by just carrying the state minimum coverage, you’re insured and will face far fewer consequences than if you are in an accident without insurance in California.
Drivers without car insurance in California will face steep fines, penalty fees, license suspension, vehicle impoundment and other consequences should they be pulled over or involved in an accident. Subsequent offenses often carry more severe consequences for a longer period.
Additionally, if you’re not insured but are driving a vehicle with coverage, ensure you’re permitted to drive the vehicle by the policyholder. Most insurers extend coverage to all drivers of a vehicle — including those who are permitted borrowers of the vehicle — and many will also cover household members. However, the policyholder must understand their policy before they drive their vehicle to ensure they are covered in the event of an accident.
Frequently ask questions
Can someone drive an insured car if they’re uninsured in California?
In some instances, a person can drive an insured vehicle if they’re not insured in California. This includes permissive use and vehicle insurance that covers drivers in your household.
- Permissive Use: When your vehicle is covered under an insurance policy, drivers without insurance can technically borrow or drive your vehicle with the driver’s permission. Some insurers’ liability insurance policies cover drivers who borrow a vehicle with permission, but there can be some limitations based on the insurance company.
- Household drivers: Members of a household may be covered under the primary policyholder’s policy. Generally, they must be listed as permitted drivers on the policy. This ensures they have protections behind the wheel without having a separate policy, which is common for young drivers, those who drive infrequently or seniors.
Can my license be suspended for driving without car insurance in California?
Yes, you can have your license suspended for driving a car without insurance in California. While most first-time offenders will receive a fine and penalty fees, they could have their license suspended for up to a year. Additionally, drivers without insurance involved in an accident could be looking at a longer license suspension — up to four years — and be required to reinstate with an SR-22, much higher future insurance premiums and a longer path to improving their driving record.
How long can you drive without insurance after buying a car in California?
There is a 30-day grace period where you can drive your new vehicle in California without insurance; however, you must be a current insured driver. You can’t legally drive a new vehicle if you’re uninsured, but you still have 30 days to get a policy.
Before purchasing a new vehicle, check with your insurer to see if they automatically extend coverage to the new vehicle, if you have a more extended grace period (some may offer 45 days), and what your coverage options are to find the most affordable one for your budget.
Can you go to jail for not having car insurance in California?
You’ll not likely go to jail for not having car insurance in California. Still, you will face a significant impact on your finances, driving record, ability to drive in the state and car insurance premiums. Driving without insurance is considered a non-criminal traffic infraction, not an offense requiring jail time.
However, if you attempt to provide false proof of insurance when pulled over or at the scene of an accident, you could be charged with a misdemeanor, subject to 30 days of jail time. You could also face jail time if you are convicted of multiple infractions, such as reckless driving, DUI and driving without insurance.
Is driving without insurance a moving violation in California?
Under California law, a moving violation is considered an act that violates traffic law, such as speeding, running a stop sign or light or making an illegal turn, so driving without insurance in California is not considered a moving violation. However, should you be speeding while driving without insurance in California, you will receive a moving violation ticket and a fine for not having proof of insurance.
Resources & Methodology
Sources
- California Department of Motor Vehicles. “Auto insurance requirements.” Accessed July 2025
- California Department of Insurance. “Automotive coverage limits.” Accessed July 2025
- JNLY Law. “What are the consequences for driving without insurance in California?” Accessed July 2025
- Justia U.S. Law. “2024 California vehicle code.” Accessed July 2025
- Lassen County. “Traffic tickets explained.” Accessed July 2025
Methodology
CarInsurance.com commissioned Quadrant Information Services to report average auto insurance rates for a Honda Accord LX for every state. We calculated rates using data for up to six large carriers (Allstate, Farmers, GEICO, Nationwide, Progressive and State Farm).
Averages are based on insurance for a married 40-year-old who commutes 12 miles to work each day, with policy limits of 100/300/100 ($100,000 for injury liability for one person, $300,000 for all injuries and $100,000 for property damage in an accident) and $500 deductibles for collision and comprehensive coverage. The rate includes uninsured motorist coverage. Your rate depends on personal factors and your vehicle.
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