Auto Insurance in California: Everything You Need to Know

When you own a car in California, having auto insurance is mandatory. With so many options to choose from, it can be overwhelming to know which coverage is right for you. In this article, we’ll guide you through the basics of auto insurance in California.

Types of Car Insurance in California

California law requires drivers to have liability insurance coverage. Liability insurance covers damages you may cause to other people or their property in an accident where you are at fault. The minimum liability coverage required in California is:

Minimum Liability Coverage
Bodily injury liability per person
Bodily injury liability per accident
Property damage liability per accident

However, it is recommended that drivers carry higher liability coverage to protect against lawsuits and damages that exceed the minimum coverage. Other types of coverage you can add to your policy include:

  • Collision coverage: covers damages to your car in an accident with another car or object
  • Comprehensive coverage: covers damages to your car from non-collision incidents like theft, vandalism, or natural disasters
  • Uninsured/underinsured motorist coverage: covers damages if you are in an accident with a driver who does not have insurance or does not have enough insurance to cover the damages

How to Choose the Right Coverage

When choosing your car insurance coverage, consider factors such as your budget, driving habits, and the value of your car. If you have a newer car, collision and comprehensive coverage may be worth the extra cost. If you have an older car, you may want to skip these coverages to save money on your premium.

Additionally, if you frequently drive in high-traffic areas or have a history of accidents, you may want to consider higher liability coverage to protect against lawsuits.

Factors Affecting Car Insurance Rates

Car insurance rates in California are determined by several factors, including:

  • Your driving record and history
  • Your age and gender
  • The type of car you drive
  • Your location
  • Your credit score

Having a good driving record and credit score can help lower your insurance rates. Additionally, some insurance companies offer discounts for safe driving courses or for bundling multiple policies together.


Do I need to show proof of insurance in California?

Yes. California law requires you to carry proof of insurance with you while driving. If you are pulled over by law enforcement, you will be asked to provide proof of insurance.

Can I get insurance with a suspended license?

It may be difficult to find insurance with a suspended license, but it is not impossible. Some insurance companies may offer high-risk insurance or specialize in insuring drivers with a suspended license.

What happens if I let my insurance lapse?

If you let your insurance lapse, you may face fines, penalties, and even have your license suspended. Additionally, if you are in an accident while uninsured, you may be held financially responsible for damages and injuries.

Can I change my insurance coverage at any time?

Yes. You can change your insurance coverage at any time, but it’s important to note that changing your coverage mid-term may result in additional fees or charges.

How can I save money on car insurance premiums?

There are several ways to save money on car insurance premiums, including:

  • Choose higher deductibles
  • Bundle multiple policies together
  • Take advantage of discounts for safe driving or good credit
  • Compare quotes from multiple insurance companies


Having auto insurance is not only mandatory in California, but it’s also an important way to protect yourself and your assets in the event of an accident. By understanding the types of coverage available, factors affecting insurance rates, and ways to save money on premiums, you can make an informed decision when choosing your car insurance policy.