# California car insurance: the new minimums, Prop 103 pricing rules and low-cost options

> California car insurance guide: the higher minimums and the next scheduled step, how Prop 103 limits pricing, the low-cost program, UM rules and costs.

Canonical page: https://statecover-guide.com/location/california/  
Last reviewed: October 28, 2026 by the StateCover Guide editorial team  
General information, not legal or insurance advice.

## Quick answer

Since January 1, 2025, California requires liability insurance of at least $30,000 per person and $60,000 per accident for injuries, plus $15,000 for property damage, and those minimums rise again on January 1, 2035. Under Proposition 103, your driving record, miles driven and years of experience must carry the most weight in your price. Drivers with low incomes and clean records may qualify for the state's Low Cost Auto Insurance program.

## Key facts

| Fact | Detail |
|---|---|
| Insurance required | Yes |
| Minimum liability now | $30,000 per person / $60,000 per accident bodily injury, $15,000 property damage |
| Recent and scheduled changes | SB 1107 raised minimums from 15/30/5 to 30/60/15 effective January 1, 2025, and sets a further rise to 50/100/25 on January 1, 2035. The California Low Cost Auto Insurance program for eligible low-income drivers uses lower limits of 10/20/3. |
| Fault system | At-fault |
| Personal injury protection | Not required |
| Uninsured and underinsured motorist | Must be offered; can be rejected by signing a waiver |
| Medical payments | Optional (may be offered) |
| Good Driver Discount | At least 20% below non-Good Driver rates at the same insurer |
| Average expenditure (2023) | $1,225.02 a year (US: $1,281) |
| Average premium with collision and comprehensive (2023) | $1,417.94 a year (US: $1,438) |
| Uninsured drivers (2023) | 20.4% (US: 15.4%) |
| Insurance regulator | California Department of Insurance, 1-800-927-4357 (consumer hotline) |
| Motor vehicle agency | California Department of Motor Vehicles |

## California's minimum limits: the recent increase and the next step

California's financial responsibility minimums are set in Vehicle Code section 16056. The current amounts apply to policies issued or renewed on or after January 1, 2025. The same law schedules a second increase for policies issued or renewed on or after January 1, 2035.

| Coverage | Policies issued or renewed now | From January 1, 2035 |
|---|---|---|
| Bodily injury or death, one person | $30,000 | $50,000 |
| Bodily injury or death, all people in one crash | $60,000 | $100,000 |
| Damage to other people's property | $15,000 | $25,000 |

Instead of a policy, you can meet the law with a $75,000 cash deposit or surety bond, or a DMV self-insurance certificate. Insurers report insured vehicles to the DMV electronically, and a registration can be suspended if the DMV does not receive proof of insurance.

The minimum only protects other people, and only up to those limits. For example, if you cause a crash that injures a driver whose bills reach $140,000 and your per-person limit is $100,000, the remaining $40,000 can be claimed from you. Our guides to [liability coverage](https://statecover-guide.com/coverage/liability/) and [state minimum coverage changes](https://statecover-guide.com/blog/state-minimum-coverage-changes/) go further.

## How Proposition 103 shapes California prices

Proposition 103, approved by California voters, sets rules for how insurers may price auto policies. Under it, insurers must give the most weight to driving safety record, annual miles driven and years of driving experience, in that order. Other factors, such as where the car is garaged, can be used but must count for less.

Other rules that follow from the same law and its regulations:

- **Good Driver Discount.** Every insurer must offer it. You qualify after 3 consecutive years licensed with no more than 1 violation point, and your rate must be at least 20% below a non-Good Driver's rate at the same company.
- **No gender rating.** Gender may not be used to rate private passenger auto insurance in California.
- **Limited reasons to cancel.** Once a policy is in force, an insurer can cancel or refuse to renew it for only 3 reasons: fraud or material misrepresentation, nonpayment, or a substantial increase in the hazard insured against.

Because your record carries so much weight, tickets and at-fault crashes can have a large effect on what you pay in California. Our guide to [how your driving record affects your rate](https://statecover-guide.com/costs/driving-record/) explains the points system.

## The California Low Cost Auto Insurance program

The Legislature created the California Low Cost Automobile Insurance Program in 1999 so that drivers on lower incomes can buy a basic policy that meets the financial responsibility law. Key rules from the program:

| Program rule | Detail |
|---|---|
| Annual premium | $199 to $986, depending on the county |
| Liability limits | $10,000 per person, $20,000 per accident, $3,000 property damage |
| Maximum vehicle value | $25,000 |
| Income limit, one-person household | $39,900 a year |
| Driving record | Checked for the past 3 years |
| Program phone | 1-866-602-8861 |

The low-cost limits are lower than the standard minimum, so the policy pays less if you cause a serious crash. Our [low-cost state programs guide](https://statecover-guide.com/saving/low-cost-state-programs/) covers eligibility and the optional coverages in detail.

## Uninsured drivers and UM coverage in California

The Insurance Research Council estimates that 20.4% of California drivers were uninsured in 2023, above the national estimate of 15.4%.

Insurers must offer uninsured and underinsured motorist coverage, and you can turn it down only by signing a waiver. Uninsured motorist property damage pays up to $3,500 for damage to your car, and only when the uninsured driver is identified. Given how common uninsured drivers are, it is worth weighing [uninsured motorist coverage](https://statecover-guide.com/coverage/uninsured-motorist/) carefully before signing the waiver.

## What happens if you drive uninsured in California

Driving without insurance in California carries consequences beyond a ticket:

1. If you are in a collision without insurance, the DMV can suspend your license for up to 4 years.
2. You can seek reinstatement after 1 year, but you must then file proof of financial responsibility (an SR-22) for 3 years.
3. Any crash with property damage over $1,000, or with any injury or death, must be reported to the DMV on form SR 1 within 10 days.

See our [SR-22 guide](https://statecover-guide.com/drivers/sr-22/) for how filings work and what they cost.

## What Californians pay

| Measure (2023) | California | United States |
|---|---|---|
| Average expenditure per insured vehicle | $1,225.02 | $1,281 |
| Average premium with liability, collision and comprehensive | $1,417.94 | $1,438 |
| Crash death rate by population (2024) | 9.8 per 100,000 people | 11.5 per 100,000 people |
| Crash death rate by miles driven (2024) | 1.19 per 100 million miles | 1.19 per 100 million miles |

Both NAIC averages for California were slightly below the national average in 2023; the average expenditure is about $102 a month. These figures predate the January 1, 2025 increase in minimum limits. IIHS counted 3,876 crash deaths in California in 2024; the rate per person was below the national rate and the rate per mile driven matched it.

Neighbors [Oregon](https://statecover-guide.com/location/oregon/), [Nevada](https://statecover-guide.com/location/nevada/) and [Arizona](https://statecover-guide.com/location/arizona/) have different rules, and all states are compared on the [car insurance by state](https://statecover-guide.com/location/) page.

## FAQ

### What is the minimum car insurance in California now?

$30,000 per person and $60,000 per accident for bodily injury, and $15,000 for property damage, for policies issued or renewed on or after January 1, 2025.

### Will California's minimum go up again?

Yes. For policies issued or renewed on or after January 1, 2035, the minimums become $50,000 per person, $100,000 per accident and $25,000 for property damage.

### Can California insurers charge women and men different rates?

No. Gender may not be used to rate private passenger auto insurance in California.

### Who qualifies for California's low-cost car insurance?

Drivers aged 16 or older with a valid California license, a car worth $25,000 or less, household income within the program's limits and a good driving record. New drivers can also apply.

### Does California use no-fault insurance?

No. California is an at-fault state and does not require personal injury protection. The driver who causes a crash is responsible for the damage, usually through their liability insurance.

## Sources

- [California Vehicle Code section 16056 (via California Public Law)](https://california.public.law/codes/vehicle_code_section_16056) — current minimums and the scheduled increase
- [California DMV, Insurance requirements](https://www.dmv.ca.gov/portal/vehicle-registration/insurance-requirements/) — minimums, electronic reporting, deposit and bond alternatives
- [California Department of Insurance, Auto insurance guide](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/01-auto/auto101.cfm) — Good Driver Discount, UM coverage and cancellation rules
- [California Insurance Code section 1861.02 (via Justia)](https://law.justia.com/codes/california/2020/code-ins/division-1/part-2/chapter-9/article-10/section-1861-02) — mandatory rating factors
- [California Department of Insurance, Low Cost Automobile Insurance Program](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/01-auto/lca/) and [program FAQ](https://www.mylowcostauto.com/faq) — eligibility, limits and prices
- [California DMV, Financial responsibility and collisions](https://www.dmv.ca.gov/portal/handbook/california-driver-handbook/financial-responsibility-insurance-requirements-and-collisions/) — uninsured collision suspensions and SR 1 reports
- [NAIC, 2022/2023 Auto Insurance Database Report](https://content.naic.org/sites/default/files/publication-aut-pb-auto-insurance-database.pdf) — average expenditure and premium
- [Insurance Information Institute, Facts + Statistics: Uninsured motorists](https://www.iii.org/fact-statistic/facts-statistics-uninsured-motorists) — uninsured driver estimates
- [IIHS, Fatality Facts 2024: State by state](https://www.iihs.org/research-areas/fatality-statistics/detail/state-by-state) — crash deaths
- [California Senate Insurance Committee, 2021-2022 Legislative Bill Summary (SB 1107)](https://sins.senate.ca.gov/sites/sins.senate.ca.gov/files/2021_-_2022_legislative_bill_summary_.pdf), as of October 28, 2026
- [Alabama Department of Insurance, State Auto Insurance Laws](https://www.aldoi.gov/Consumers/StateAutoLaws.aspx), as of October 28, 2026
- [California Department of Insurance, Automobile Series Guides](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/01-auto/), as of October 28, 2026
- [California DMV, Compulsory Financial Responsibility Law (SR 104)](https://dmv.ca.gov/portal/uploads/2020/04/sr104.pdf), as of October 28, 2026
- [California DMV, Home page](https://www.dmv.ca.gov/portal/), as of October 12, 2026
- [NAIC, 2022/2023 Auto Insurance Database Report](https://content.naic.org/article/naic-releases-20222023-auto-insurance-database-report), as of February 13, 2026
- [Insurance Research Council, Uninsured and Underinsured Motorists: 2017–2023 (press release)](https://www.businesswire.com/news/home/20250220231032/en), as of February 20, 2025
- [California Department of Insurance, Automobile Insurance consumer guide (Form 901, February 2025)](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/01-auto/upload/IG-Auto-Insurance-Updated-020525.pdf), as of February 1, 2025
- [California Department of Insurance, Commissioner issues regulations prohibiting gender discrimination in automobile insurance rates](https://www.insurance.ca.gov/0400-news/0100-press-releases/2019/release003-19.cfm), as of January 3, 2019