Personal Finance & Estate › Life & other insurance › Property & liability insurance
Auto insurance
CA minimums raised 2025· Insurance type
Law or rule (2026)Set by statute, regulation or the agency; numbers change yearly.
Required coverage for the liability you take on when driving, plus optional protection for your own car and against uninsured drivers.
See it on the Personal Finance & Estate map →How it works
California's minimum liability rose on January 1, 2025, from 15/30/5 to 30/60/15: $30,000 per injured person, $60,000 per accident and $15,000 for property damage. It rises again in 2035, to 50/100/25. Those minimums fall far short of a serious injury claim; many planners suggest 250/500/100 or more, plus uninsured-motorist coverage. Under Proposition 103 (1988), rates rest mainly on driving record, miles driven and experience; credit scores can't be used. Main trap: carrying minimums while owning real assets.
Why it matters for you
Car crashes are the most common way individuals face large injury claims, and adequate auto limits are what qualify you for an umbrella policy.
Rules, limits and sources (2026)
SB 1107 (2022) set the new minimums; Proposition 103 and Insurance Code Sec. 1861.02 set rating rules; the Department of Insurance approves rates.
Watch out for
How self-driving cars will shift liability from drivers to manufacturers, and what that does to premiums, is unsettled.
Connections (2)
▸Auto insurance is a legally required form of Property & liability insuranceLaw or rule (2026)
How they connect
Auto is the one property-and-liability line California requires of every driver: liability coverage pays others you injure, while optional collision and comprehensive cover your own car. Drivers may instead post a cash deposit or bond with the DMV, but nearly everyone buys a policy.
When it applies
California's Vehicle Code requires proof of financial responsibility; Proposition 103 (1988) reshaped how rates are set; minimum limits rose in 2025.
The rule
California Vehicle Code Sec. 16020 and 16056; Insurance Code Sec. 1861.02; DMV enforcement and Department of Insurance rate approvals.
Watch out for
How many Californians drive uninsured is only estimated, and whether higher minimums push that number up is debated.
▸Auto insurance is topped up by Umbrella liability insuranceStandard practice
How they connect
An umbrella insurer requires high auto liability limits, often $250,000 per person and $500,000 per accident, and pays only after they're used up. A serious crash with a $1.5 million judgment would be paid first by the auto policy, then by the umbrella. Every household driver and vehicle must be listed.
When it applies
Set when the umbrella is bought and the insurer schedules each auto policy and driver; teen and aging drivers are common reasons families buy one.
How sure?
Umbrella declarations list 'required underlying limits'; if auto limits fall below them, the umbrella pays only above the required amount.
Watch out for
How insurers price young or elderly drivers, and whether ride-share driving is covered, varies by company and is not standardized.