California insurance for new drivers

Coverage requirements

• Bodily injury liability: at least $30,000 for injury or death of one person in one crash.

  Applies to: Standard auto liability policies issued or renewed from January 1, 2025. Effective 2025-01-01.

  Source 1Source 2

• Bodily injury liability: at least $60,000 total for injury or death of two or more people in one crash, subject to the $30,000 limit for each person.

  Applies to: Standard auto liability policies issued or renewed from January 1, 2025. Effective 2025-01-01.

  Source 1Source 2

• Property damage liability: at least $15,000 for damage to other people's property in one crash.

  Applies to: Standard auto liability policies issued or renewed from January 1, 2025. Effective 2025-01-01.

  Source 1Source 2

• DMV lists a liability policy, a $75,000 cash deposit, a DMV self insurance certificate or a $75,000 surety bond as forms of financial responsibility.

  Applies to: Vehicle financial responsibility; each alternative has its own qualification process.

  Source 3

• The insurer must offer uninsured and underinsured motorist coverage. If you decline it, you must sign a waiver.

  Applies to: Coverage offered with auto insurance; a signed rejection is different from mandatory liability coverage.

  Source 4

• Carry proof of financial responsibility while driving and for a drive test. Show it to other drivers involved in a collision.

  Applies to: Drivers operating a vehicle or taking a drive test.

  Source 5

• The California Low Cost Auto program has different liability limits: $10,000 per person for injury or death, $20,000 per crash for injury or death, and $3,000 for property damage.

  Applies to: Only qualifying participants in the state program; these are not standard policy limits.

  Source 2

What can happen when you drive uninsured

• An uninsured collision can lead to suspension for up to four years, regardless of fault. During the last three years, DMV describes a return to driving with an SR 22 or SR 1P certificate maintained for that period.

  Applies to: Collision without proper coverage. This filing rule is tied to this suspension, not every insurance lapse.

  Source 6

• Driving without required financial responsibility can lead to fines, license suspension and vehicle impoundment.

  Applies to: Drivers without the required protection; no fine amount is stated here.

  Source 9Source 3

What to do after a crash

1. Stop. Call 911 right away if anyone is hurt. If no one is hurt, move the vehicle out of traffic and then call 911.

   Applies to: Drivers involved in a collision.

   Source 7

2. Show your driver license, registration, insurance information and current address to the other driver, law enforcement and others involved.

   Applies to: Drivers involved in a collision.

   Source 7

3. If anyone is injured or killed, report the collision to law enforcement within 24 hours.

   Applies to: If anyone is injured or killed.

   Source 7

4. File an SR 1 with DMV within 10 days if anyone is injured or killed, or property damage is more than $1,000. A police report does not replace this filing.

   Applies to: Each involved driver, even if not at fault or the crash was on private property. A representative may file.

   Source 8

Talk through the family policy

• Before supervised practice, tell the insurer that your teen has a permit. Ask who is covered, whether the teen must be listed, and whether any driver is excluded. Check again when the teen becomes licensed. Ask for the answer in writing.

  Applies to: Family planning checklist, not a universal enrollment deadline. Policy terms vary.

  Source 10

• Read the family policy together. Confirm the drivers, vehicles, uses, limits and exclusions. A permit and a driver license are different stages; do not assume the policy treats them the same.

  Applies to: Questions to ask your insurer about your own contract.

  Source 10

Questions about cost factors

• Ask whether good student status or completed driver education affects your policy, what proof is needed and when eligibility ends. These are questions to check, not a promise of a discount or savings.

  Applies to: General planning questions. The cited New York consumer guide describes examples, not a benefit required in every state.

  Source 14

• Keep a clean driving record and ask how tickets and crashes affect your policy. A clean record does not promise a particular price.

  Applies to: General planning guidance; the insurer and policy determine the result.

  Source 15

Five terms to know

Premium

The amount you pay for an insurance policy. Source 11

Deductible

The part of a covered loss you must pay yourself when that coverage has a deductible. Source 11

Liability

Responsibility for harm to other people or their property. Liability coverage helps pay covered losses you cause. Source 12

At fault

Responsible for causing a crash. Responsibility can be shared. Source 13

Coverage

The protection a policy provides, subject to its limits and exclusions. Source 10

Check your understanding

Official sources

Each rule above links to its evidence below. Check the agency source for the full rule and exceptions.

1. California Department of Insurance: SB 1107 bulletin

   Bulletin 2023-1, page 1; Vehicle Code 16056. Reviewed 2026-11-03.

2. California Department of Insurance: 2025 changes

   Higher minimum liability limits. Reviewed 2026-11-03.

3. California DMV: financial responsibility

   Types of Insurance. Reviewed 2026-11-03.

4. California Department of Insurance: uninsured motorists

   Other Kinds of Coverage. Reviewed 2026-11-03.

5. California Driver Handbook: financial responsibility

   Section 10. Reviewed 2026-11-03.

6. California Driver Handbook: uninsured collisions

   Section 10, Driving Without Insurance. Reviewed 2026-11-03.

7. California Driver Handbook: crash duties

   Section 10, What to Do if You Are in a Collision. Reviewed 2026-11-03.

8. California Driver Handbook: DMV report

   Section 10, Reporting a Collision. Reviewed 2026-11-03.

9. California Department of Insurance: driving without coverage

   California Law. Reviewed 2026-11-03.

10. California Department of Insurance: policy basics

    Your Auto Policy and Compare Policies. Reviewed 2026-11-03.

11. California Department of Insurance: insurance terms

    Auto Insurance Costs. Reviewed 2026-11-03.

12. California Department of Insurance: liability

    Liability Coverage. Reviewed 2026-11-03.

13. California Department of Insurance: glossary

    Comparative negligence. Reviewed 2026-11-03.

14. New York Department of Financial Services: policy questions

    Discounts and driver training. Reviewed 2026-11-03.

15. New York Department of Financial Services: driving record

    Driving Record. Reviewed 2026-11-03.