Yes, car insurance is legally required in California. The state mandates that all drivers carry a minimum amount of liability insurance. The core requirement is often referred to as 15/30/5 coverage. This means:
- $15,000 for injury or death to one person.
- $30,000 for injury or death to more than one person.
- $5,000 for property damage.
You must be able to provide proof of this insurance when registering your vehicle or if a law enforcement officer asks for it during a traffic stop. Driving without insurance can lead to severe penalties, including fines, license suspension, and vehicle impoundment. While this minimum coverage keeps you legal, it's often not enough to fully protect your assets in a serious accident. Most financial advisors recommend purchasing higher limits and considering additional coverage like collision and comprehensive.
| California Minimum Auto Insurance Requirements | Coverage Limit |
|---|
| Bodily Injury Liability (per person) | $15,000 |
| Bodily Injury Liability (per accident) | $30,000 |
| Property Damage Liability (per accident) | $5,000 |
| Uninsured Motorist Bodily Injury (per person) | $15,000 |
| Uninsured Motorist Bodily Injury (per accident) | $30,000 |
While liability insurance is the only coverage required by law, California also requires insurance companies to offer you Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage. These protect you if you're hit by a driver with no insurance or insufficient insurance. You can decline this coverage in writing, but it's a valuable and often affordable addition to your policy.
