You Need Auto Insurance in California: Here's How to Get It

Everyone knows driving without a license is a big no-no. But did you know you'll get in trouble if you don't have auto insurance in California? It doesn't matter if you're practicing driving on a learner's permit or if you've had a license for years: everyone needs coverage. Here is what you need to know as a new driver hitting the road in the Golden State.

Auto Insurance Is a Must in California

You may get into an accident any time you get behind the wheel. If someone gets hurt (or if their property is damaged), it may be up to you to pay up. The state of California doesn't want anyone shirking their financial responsibilities, so auto insurance is mandatory.

Everyone who owns or drives a vehicle must meet one of the following insurance requirementsVehicle Registration Insurance Requirements Portal:

Liability insurance policy
Cash deposit of $35,000 with the DMV
DMV-issued self-insurance certificate
Surety bond for $35,000 from a California-licensed business

Drivers who don't have insurance may pay expensive fines, have their licenses suspendedCalifornia Suspended License Dmv, and see their vehicles impounded.

Even teens who are considering getting their licenseCalifornia How To Get Your Driver License Dmv soon need to follow these strict rules.

How to Add a New Driver to an Insurance Policy in California

In many cases, teens can buy their own insurance policy as long as a parent or guardian co-signs it. But that's often expensive. After all, young drivers are four times more likelyTeenagers#by The Numbers Topics to get into a crash than older drivers — and that's reflected in insurance costs.

A much more affordable way to insure teens is to add them to an existing policy. Speak with an insurance agent or amend your policy details online on the insurance provider's website. You'll likely be asked:

The teen's name and date of birth
Their driving history
Their license information
Their Vehicle Identification Number (VIN) if they drive their own vehicle

Who Can Be Added to Existing Policies?

Any teen living with their parents (whether driving their parents' vehicles or their own) can join their existing policy.

They can even stay on it after going to college, as long as they maintain their parents' primary address or drive a vehicle registered in their name.

Unlike what happens with health insurance, there are no age limits on auto insurance. As a result, adults living with their parents can continue on a shared policy.

What Kind of Coverage Do I Need?

Liability Insurance

The minimum liability coverage required in California is:

$5,000 for property damage
$15,000 for injury or death to one person
$30,000 for injury or death to two or more people

Extra Nice-to-Haves

It might be a good idea to add extras to your policy. Deciding what you need can feel overwhelming, which is why we developed an auto insurance guideAuto Insurance Guide Safe Driving. You could add:

Personal injury protection
Uninsured motorist coverage
Comprehensive coverage
Gap coverage
Collision coverage

Low-Cost Car Insurance

Drivers 16 and older working with a tight budget could turn to low-cost car insurance. Sponsored by the state of California, this program lifts some of the barriers to hitting the road.

Updated June 16, 2023