California requires all drivers to carry auto insurance before getting behind the wheel. Whether you're a first-time driver, new to the Golden State or shopping for a better rate, A-MAX helps California drivers find affordable coverage that meets the state's updated requirements.
Car Insurance California: Requirements & Coverage Guide
California Car Insurance Requirements (Updated 2025)
On January 1, 2025, California increased its minimum liability limits for the first time since 1967 under Senate Bill 1107. California now requires drivers to carry at least $30,000 bodily injury liability coverage per person, $60,000 bodily injury liability coverage per accident, and $15,000 property damage liability coverage. These new minimums, often called 30/60/15 coverage, include:
$30,000 for bodily injury per person
$60,000 for bodily injury per accident
$15,000 for property damage
These limits doubled (and in the case of property damage, tripled) from the previous 15/30/5 requirements to better reflect today’s medical costs and vehicle repair expenses. The previous state-mandated $5,000 property damage liability was often insufficient for modern car repairs. Premiums have increased by 30% to 100% due to the new "30/60/15" liability limits. If your policy renewed after January 1, 2025, your coverage should automatically meet these new minimums.
All vehicles operated in California are subject to registration and insurance requirements under state law. California law requires that owners and operators of automobiles comply with financial responsibility laws, meaning you must be able to pay for damages or injuries you cause in an accident. While these limits satisfy California law, many drivers choose higher coverage. With California’s high traffic volume and repair costs, even a moderate accident can quickly exceed minimum limits — leaving you personally responsible for the difference.
Bodily injury liability coverage protects you against expenses resulting from injury or death caused to others in an accident. California's Proposition 103 also requires insurers to justify rate changes to the state, promoting fairer pricing for consumers.
Types of Car Insurance Coverage in California
Beyond required liability coverage, California drivers have several options to protect themselves and their vehicles. In addition to the basics, there are other types of car insurance coverage available in California, such as uninsured motorist, medical payments, comprehensive, and collision coverage.
Liability Insurance: Covers damages you cause to others in an accident. This is the only coverage California legally requires. Each company may offer different coverage options, so it's important to compare what each company provides.
Collision Coverage: Pays to repair or replace your vehicle after an accident, regardless of fault. If you lease your vehicle, your lender will typically require you to carry collision coverage. Collision coverage is optional but recommended for newer or financed cars.
Comprehensive Coverage: Protects against non-collision events like theft, vandalism, fire, floods or falling objects — especially important in a state prone to wildfires. Comprehensive coverage is also usually required if you lease your car. It is optional but recommended for newer or financed vehicles. Gap insurance is another option that covers the difference between your car's actual value and what you owe on a loan or lease if the vehicle is totaled.
Uninsured/Underinsured Motorist Coverage: With approximately 16-17% of California drivers uninsured (roughly 4.5 million motorists), this coverage protects you if you’re hit by someone without adequate insurance. California insurers must offer this coverage, though you’re not required to accept it. This coverage is highly recommended to cover damages caused by uninsured drivers.
Medical Payments Coverage (MedPay): Helps pay medical bills for you and your passengers after an accident, regardless of fault. California doesn’t offer traditional PIP insurance but does offer MedPay as an optional coverage.
When choosing a provider, consider not only the coverage options and discounts each company offers, but also the quality of their customer service and how they handle claims. You may also save by purchasing bundled policies, such as combining auto and renters or homeowners insurance.
Get Covered Today!
Amy V. ⭐⭐⭐⭐⭐
We are super satisfied with the service we get from Stephanie every time we need a quote, make a payment or even just a simple question…She is super friendly very professional and did I mention very thorough about any information she gives us. I feel like she always goes above and beyond no matter what service we need.Thank you Stephanie we need more people like you in the customer service world!
Read More
Nate P. ⭐⭐⭐⭐⭐
Lindsey was absolutely amazing, she stayed on the phone with me until the whole process was complete and was very polite! Also, the rates are unbeatable!!! I would put 10 stars if I could but I guess I'll just highly recommend them!
Read More
Abelia C. ⭐⭐⭐⭐⭐
Vanessa had helped me with a quote and getting started on insurance, she was extremely helpful and gave me an awesome deal!! She was super polite and beyond helpful!!
Read More
Miguel C. ⭐⭐⭐⭐⭐
Great customer service! Immediate quote with the best prices in town. I had have them for about six years now and they are always eager to help and give you the best deal.
Read More
Richard L. ⭐⭐⭐⭐⭐
I have been with them for more than 8 years I have not had any problems very good company!
Lejoan B. ⭐⭐⭐⭐⭐
Angelica helped with my full coverage insurance in under 20 mins I was all set. Thanks again I’ll be recommending.
Read More
Ametrus B. ⭐⭐⭐⭐⭐
If you just need liability insurance, this is the go to place. Lowest prices in town. Friendly agents to work with.
Read MoreCar Insurance in California for New Residents
Moving to California means adapting to new roads, new rules, and new car insurance requirements. As the most populous state in the country, California’s busy highways and diverse weather conditions make having the right auto insurance essential for every driver—especially if you’re new to the Golden State.
California law requires all drivers to carry auto insurance that meets specific minimums for bodily injury liability coverage and property damage liability coverage. While these minimums are set by the state, many new residents find that opting for higher limits and additional coverage options—like collision coverage and comprehensive coverage—offers better protection against the unexpected. This is especially important in areas prone to natural disasters, such as wildfires and earthquakes, or in high-traffic cities like San Francisco.
When you’re shopping for car insurance in California, several factors will affect your car insurance rates. Your driving experience, the type of vehicle you drive, and your coverage choices all play a role. California drivers with a clean driving record may qualify for a good driver discount, and students with strong academic performance can often access a good student discount. Many insurers, including GEICO and Mercury Insurance, offer additional savings through multi-car and bundling discounts, helping you save money while securing quality coverage.
To get started, request an auto insurance quote from multiple insurers to compare rates and coverage options. A-MAX makes this process easy by comparing plans from over 35 carriers, ensuring you find the best fit for your needs and budget. You can also visit the California Department of Insurance website for more information about state requirements or to file a complaint if you encounter issues with your insurer.
As a new resident, you’ll also need to register your vehicle in California and pay any applicable fees. Be sure to always carry proof of insurance in your car—failure to do so can result in fines, vehicle impoundment, or even license suspension. Local regulations may vary, so it’s wise to check for any city-specific requirements, especially if you’re moving to a major metro area.
In summary, securing car insurance in California as a new resident means understanding state laws, evaluating your coverage needs, and taking advantage of available discounts. By comparing auto insurance quotes and choosing the right protection, you can drive with confidence and peace of mind—no matter where your California journey takes you.
Why California Drivers Choose A-MAX
Finding the right car insurance in California doesn’t have to be complicated. A-MAX makes it easy by shopping over 35 carriers to find you the best rate for your situation. Comparing different company options is key to finding the best coverage, as each company offers unique rates, discounts, and customer service experiences. It's also important to consider a company's claims service, since how claims are handled can greatly impact your satisfaction after an accident or incident.
- Bilingual Service: Our team speaks both English and Spanish, so you can get help in your preferred language.
- Multiple Carriers: We compare rates from 35+ insurance companies to find affordable coverage. Drivers should compare quotes from multiple insurers and check financial strength before choosing a California car insurance policy.
- Discounts for Good Drivers: Good drivers are eligible for specific discounts. For example, Mercury Insurance provides discounts for good drivers, multiple-car policies, and good students. Allstate also offers various discounts that can help reduce car insurance premiums in California.
- Flexible Payment Options: We offer payment plans that work with your budget.
- Fast SR-22 Filing: If you need an SR-22 certificate, we file it directly with the California DMV for you.
California SR-22 Requirements
If your license was suspended due to a DUI, driving without insurance, or certain serious traffic violations, the California DMV will likely require an SR-22. This certificate proves to the state that you carry the minimum required liability coverage.
How Long Do You Need an SR-22 in California?
California typically requires drivers to maintain an SR-22 for 3 years starting from the date your license is reinstated (not the conviction date). If your policy lapses or is canceled during this period, your insurer must notify the DMV, which can result in another license suspension — and may restart your 3-year clock.
Filing with A-MAX
We handle the SR-22 filing process for you. A-MAX submits the certificate directly to the California DMV, helping you get back on the road faster. While SR-22 policies typically cost more than standard insurance (premiums can increase 50-100% or more after a DUI), we shop multiple carriers to find the most competitive rate available.
How Much Does Car Insurance Cost in California?
California car insurance rates vary based on several factors. The average annual cost of car insurance in California is approximately $3,100 for full coverage and $911 for minimum coverage.
Location: Urban areas like Los Angeles and San Francisco typically have higher rates than rural regions. LA has accident rates 82% above the national average. High-traffic or high-theft areas in California result in higher car insurance premiums.
Driving Record: Accidents, tickets, and DUIs increase your premiums significantly. A clean driving record is the primary factor for lower rates in California car insurance.
Age and Experience: Younger and newer drivers usually pay more.
Vehicle Type: Newer, more expensive cars cost more to insure.
Coverage Level: Higher limits and additional coverage types increase your premium.
USAA, Progressive, and Geico offer some of the lowest average rates in California. California also has a high percentage of uninsured drivers, with an estimated 20.4% of drivers lacking insurance as of 2023.
Ways to Save on California Car Insurance:
Good Driver Discount: California law requires insurers to offer a discount to drivers with clean records (no at-fault accidents involving bodily injury and no more than one point in the past three years).
Bundling: Combine auto with renters or home insurance for a discount. You can save more when you purchase bundled policies together.
Continuous Coverage: Avoid gaps in your insurance history.
Comparison Shopping: A-MAX compares 35+ carriers to find you the lowest rate.
Annual Mileage Discounts: Your annual mileage affects your car insurance rates; lower mileage may qualify you for discounts. Programs like Mercury's RealDrive verify your mileage to provide potential savings.
California Low Cost Auto Insurance Program
If you're a good driver with limited income, you may qualify for the California Low Cost Auto (CLCA) Insurance Program. This state-sponsored program provides basic liability coverage at reduced rates (premiums range from about $244-$966 annually depending on county).
Important: CLCA coverage limits (10/20/5) are lower than California's standard minimums. This program is designed for income-eligible drivers and has specific requirements including vehicle value limits and driving record standards. A-MAX can help you determine whether this program or a standard policy better fits your needs.
Common questions about Car Insurance in California
First offense: $100-$200 fine plus penalty assessments (totaling around $400-450). Second offense: $200-$500 plus assessments ($520-$1,300 total). Your vehicle can be impounded, and your license may be suspended for up to four years if you're a repeat offender. If you're in an accident without insurance, your license will be suspended for one year regardless of who was at fault.
Yes. A-MAX helps many international drivers find coverage. We can often write a policy using a valid foreign license, including a Mexican driver's license (licencia de conducir) or an international driving permit.
No. California is an "at-fault" state using a "pure comparative negligence" system. This means the driver who caused the accident is responsible for paying damages. However, even if you're partially at fault, you can still recover compensation — your award is simply reduced by your percentage of fault.
You typically need to file an SR-22 with the DMV, pay reinstatement fees, complete any required programs (such as DUI school if applicable), and resolve outstanding tickets or legal requirements. A-MAX handles the SR-22 filing to help speed up the process.
Yes, you can purchase SR-22 insurance with a suspended license. In fact, getting SR-22 coverage is often the first step toward license reinstatement.
Ready to Find Affordable Car Insurance in California?
Get a free quote from A-MAX today. We'll compare rates from 35+ carriers to find coverage that protects you and fits your budget — all with the personalized, bilingual service you deserve.
Find your nearest A-MAX Office in California | Call us at 800-921-AMAX
Let's Start Saving
Drop by One of Our
Convenient Locations
and chat with a friendly agent!
Call Us
Text Us
Message
Visit