Minimum Auto Liability Insurance in California

Financial Responsibility Laws & Minimum Liability Coverage Required

California's Compulsory Financial Responsibility Law requires that every driver and owner of a motor vehicle to be financially responsible for their actions.  The legally required minimum limits of liability insurance in California are as follows:

Bodily Injury

• $15,000 for death or injury of any one person, any one accident.
• $30,000 for all persons in any one accident.

Property Damage

• $5,000 for any one accident.

You can meet your financial responsibility in the following four ways:

1. Coverage by a motor vehicle or automobile liability insurance policy;
2. A cash deposit of $35,000 with the Department of Motor Vehicles (DMV);
3. A certificate of self-insurance issued by DMV to owners of fleets of more than 25 vehicles; or
4. A surety bond for $35,000 obtained from an insurance company licensed to do business in California.

It is required by the law in California that all drivers and owners have at least the minimum liability insurance or an approved alternative way so that they can pay for injury or property damage they may cause.  In the absence of the minimum liability insurance, the penalties are very severe.

When your car is involved in any accident for which you are legally liable, bodily injury (BI) liability covers your liability to others for injuries to them. Property damage (PD) liability covers your liability for damage to someone else's property.

A policy with BI of $15,000/$30,000 and PD of $5,000 will pay out as follows:

• The maximum limit for one person's injuries, medical expenses is $15,000 in the bodily injury part,
• In case two or more people are injured, the maximum limit for the accident will be $30,000;
• The maximum limit for damage to other people's property (their car, their fence, etc.) is $5,000.

The above mentioned insurance is required by the law and therefore you must have this required coverage. However, comprehensive coverage (other than collision), uninsured motorist, medical payments and collision insurance are not required by law.

What Could Happen If I Ignore This Law?

The best way to meet the financial responsibility requirements of the state is to purchase automobile liability insurance policy. If you have an accident not covered by insurance, then your license may be suspended. Regardless of who operates the vehicle, if you own the vehicle it is your responsibility to carry the minimum liability insurance. It is simply illegal to operate vehicles without meeting these requirements.