California requires all drivers to carry auto insurance. The law is specific about minimum coverage amounts, how you prove it, and what happens if you don't have it. Here's what you're legally required to carry, what the optional coverages actually do, and what assistance programs exist for drivers who can't afford standard premiums.

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Minimum liability coverage in California

California's minimum liability coverage requirements are:

• $15,000 for bodily injury or death to one person in any single accident
• $30,000 for bodily injury or death to two or more people in any single accident
• $5,000 for property damage

These are often written as 15/30/5. They cover damage you cause to other people and their property: not your own vehicle or your own injuries. If you rear-end someone and cause $20,000 in medical bills, the minimum policy covers $15,000 and you're personally on the hook for the remaining $5,000.

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California is an at-fault state, meaning the driver who caused the accident is responsible for the other party's damages. The minimum limits were set in 1967 and haven't kept pace with medical costs. For most drivers, especially those with assets worth protecting, carrying more than the minimum is worth the relatively small difference in premium.

Optional coverage types

Comprehensive coverage pays for damage to your vehicle from events other than a collision: theft, vandalism, fire, falling objects, flood, and hitting an animal. If your car is older or paid off, you may choose to skip this. If it's financed or leased, your lender requires it.

Collision coverage pays for damage to your own vehicle from a collision with another car or object, regardless of who was at fault. Like comprehensive, lenders require it on financed vehicles. The deductible you choose (typically $500 or $1,000) directly affects your premium.

Uninsured/underinsured motorist coverage pays your medical bills and sometimes property damage if the at-fault driver has no insurance or not enough. About 16 percent of California drivers are uninsured, so this coverage is genuinely useful. It's inexpensive to add and highly recommended.

Medical payments coverage (MedPay) covers medical costs for you and your passengers regardless of who caused the accident. It pays quickly without waiting for fault to be determined.

Rental reimbursement and roadside assistance are add-ons that cover rental cars while your vehicle is being repaired and towing or battery jump costs.

Proof of insurance

You must carry proof of insurance whenever you drive. California law allows electronic proof via smartphone apps: showing the insurer's app on your phone screen satisfies the requirement. A photo of the insurance card also works. You must present it when asked by a law enforcement officer, when registering a vehicle, and after a collision.

California insurers report coverage electronically to the DMV. If your policy lapses, the DMV is notified automatically. You don't have to do anything wrong to trigger a review: the system flags you when coverage drops.

Penalties for driving without insurance

If you're stopped while driving without insurance:

• First offense: $100 to $200 base fine. With California's penalty assessments, the total out-of-pocket cost typically runs $450 to $900.
• Second offense within three years: $200 to $500 base fine, with total costs often exceeding $1,000.
• Your vehicle may be impounded.

If you cause an accident while uninsured, you're personally liable for all damages. California's financial responsibility laws can result in your license being suspended until damages are paid or a payment plan is arranged.

Registration suspension for lapsed insurance

The DMV can suspend your vehicle registration if:

• Your insurance lapses for 45 or more consecutive days
• You fail to provide proof of insurance within 30 days of a DMV request
• You submitted false evidence of insurance

Reinstating a suspended registration costs $14, plus you need to show proof of active insurance. The reinstatement fee is separate from any fines for the underlying violation.

The Good Driver Discount

Proposition 103, passed by California voters in 1988, requires insurers to offer a mandatory 20 percent discount to drivers who qualify as "good drivers." You qualify if you:

• Have at least 3 years of driving experience
• Have no more than one point on your driving record
• Have not been at fault in an accident that caused injury or death in the past 3 years

If you qualify and your current insurer isn't giving you this discount, ask. If they won't apply it, you can shop elsewhere: all California insurers are required to offer it to eligible drivers.

California Low Cost Automobile Insurance Program (CLCA)

California runs a state-subsidized insurance program for income-eligible drivers who can't afford standard premiums. The CLCA provides minimum liability coverage at rates significantly below the standard market. To qualify, you need to:

• Have a valid California driver's license
• Own a vehicle valued at $25,000 or less
• Meet income eligibility requirements (based on federal poverty guidelines)
• Have a clean driving record for the past 3 years

Annual premiums in the CLCA program vary by county but are typically between $244 and $966 per year for basic liability coverage. Information is available at dmv.ca.gov and through the California Department of Insurance.

SR-22: certificate of financial responsibility

An SR-22 is not an insurance policy: it's a form your insurer files with the California DMV certifying that you carry at least minimum liability coverage. The DMV requires it after certain violations:

• DUI or DWI conviction
• Driving without insurance after an accident
• Too many points on your driving record
• Reckless driving conviction
• License suspension or revocation in some cases

You typically need to maintain SR-22 status for 3 years. If your policy lapses during that period, your insurer notifies the DMV and your license is suspended. Not all insurers offer SR-22 filings, and those that do typically charge higher premiums for drivers who need one.

When you should carry more than the minimum

The minimum limits are low by modern standards. A single ER visit can cost more than $15,000. If you own a home, have savings, or have anything worth protecting, you're exposed if you only carry minimums and cause a serious accident. The difference in premium between 15/30/5 and 100/300/100 is often smaller than people expect. Get a quote for both before deciding.

For the traffic laws and rules tested on the California DMV written exam, use our free California practice tests. Insurance knowledge: including when you're required to file an accident report: is covered in the exam.