California is a fault-based car accident state with pure comparative negligence insurance laws. This type of system requires car accident victims who seek compensation to file claims against the insurance of the driver responsible for the accident. To protect California drivers from personal liability, California requires all drivers to carry at least the state’s minimum car accident insurance or leave a deposit for that full amount at the California Department of Motor Vehicles.
If you are a California driver, it’s essential to know the state’s minimum car insurance requirements, which were updated in January of 2025.
What are the New Minimum Insurance Requirements In California?
California’s previous coverage requirements for auto insurance were woefully out-of-date and inadequate for today’s medical care and car repair costs. The updated law is the first change in required California auto insurance coverage in 56 years. The state now requires drivers to carry at least the following coverage:
- $30,000 per injury per person
- $60,000 total injury coverage per accident (for multiple injury victims)
- $15,000 in property damage liability per accident
The minimum required coverage is a “30/60/15” rule rather than the previous “15/30/5” rule in place in California for decades.
How Does California’s Minimum Insurance Requirement Increase Impact an Alternative DMV Deposit?
This updated insurance amount is listed under California Senate Bill 1107, which also states the following clarification to the only legal alternative of a cash deposit of the full amount to the DMV:
“Existing law defines “proof of financial responsibility” for purposes of the provisions requiring an owner or operator of a motor vehicle to maintain proof of financial responsibility in these amounts, as specified… the bill would also increase the deposit to $75,000… Under existing law, a violation of the Vehicle Code is a crime.”
Driving a car in California without insurance or a deposit to the DMV is an enforceable crime with penalties that include hefty fines, license suspension, and the impoundment of the uninsured driver’s vehicle. In addition, failing to have valid insurance can make the driver ineligible to recover compensation in an accident even if the other driver caused the accident.
California drivers must carry proof of their valid insurance coverage in their vehicle at all times.
Does California Require Uninsured/Underinsured Motorist Coverage?
The state also adds uninsured/underinsured motorist coverage to all minimum insurance policies for California drivers unless the policyholder signs a waiver to remove the coverage from their policy. Both the California Department of Motor Vehicles and our Van Nuys car accident attorneys highly recommend that all drivers keep the uninsured/underinsured motorist coverage on their policies. Nearly one in every seven drivers is uninsured. After an accident caused by an uninsured driver, an injury victim cannot recover their financial losses unless they can file a claim against their own uninsured motorist coverage. Similarly, if an accident causes catastrophic injuries with expenses that far exceed the limits of an at-fault driver’s insurance, an injury victim with uninsured/underinsured motorist coverage in addition to California’s minimum car insurance requirement can file a claim for further compensation against their underinsured motorist policy with the help of a Los Angeles uninsured/underinsured motorist accident attorney.
