Before you can drive a motor vehicle in the State of California, the car must be properly insured. Insurance, also known as proof of financial responsibility, is required on all registered vehicles in California. It is against the law to drive without at least the required amounts of automobile insurance.
California’s 30/60/15 Insurance Rule
California is a fault-based car insurance state, not a no-fault state. This means that after a car accident occurs, the driver or party at fault for causing the wreck can be held liable, or financially responsible, for a victim’s injuries and related losses.
All drivers in California are required to carry minimum amounts of liability insurance to ensure they are able to pay for at-fault accidents. The required amounts (increased as of January 2025) are:
- $30,000 for bodily injury or death to one person
- $60,000 for bodily injury or death to two or more persons (per accident)
- $15,000 for damage to property
This is known as a 30/60/15 insurance rule. While drivers can choose to purchase more than these amounts, this is not a requirement. Only these types and amounts of insurance are currently required per California Insurance Code §11580.1b.
Minimum Auto Insurance Requirements in California
Other Available Types of Coverage
It is highly recommended that drivers carry additional coverage on top of California’s required liability insurance. Additional insurance can provide first-party coverage for your own losses after an accident, regardless of who is at fault.
Options include:
- Uninsured motorist
- Underinsured motorist
- Comprehensive coverage
- Collision coverage
- Personal injury protection (PIP)
- Medical Payments (MedPay)
- Rental car coverage
Full coverage insurance is suggested to ensure your medical bills and property damage are covered even if the other party is underinsured. You should check in with your insurance policy regularly to assess whether it still meets your needs.
What Are the Penalties for Breaking California’s Insurance Requirements?
Failing to purchase enough insurance and carry proof of insurance while driving can lead to penalties. Potential consequences include a fine of $100 to $500, impoundment of the vehicle, registration suspension and possible driver’s license suspension. In addition, if an uninsured or underinsured driver causes a car accident, he or she can be held personally responsible for paying for the victim’s losses.
What Happens if a Driver Is Uninsured or Underinsured?
If you get hurt in an accident involving an uninsured or underinsured driver in California, you may need to rely on your own automobile insurance to cover your losses, even if you were not at fault. Uninsured/underinsured motorist (UM/UIM) insurance can pay for accidents caused by these drivers.
After your crash, contact your own insurance provider to inquire whether you have UM/UIM coverage. If so, this can pay for your medical bills, lost wages and other losses. If the other driver has some car insurance, but not enough, your insurance can cover the gap.
If you do not have this type of first-party insurance, a personal injury lawsuit may be more suitable. A lawsuit brought directly against the uninsured driver or a third party, such as a vehicle manufacturer or the government, could lead to greater financial compensation for your losses. Consult with a car accident attorney in Sacramento to discuss your legal options in more detail.