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 requirements:

  • 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 suspended, and see their vehicles impounded.

Even teens who are considering getting their license 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 likely 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 guide. 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 6/16/23