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Like most states, California requires drivers to maintain auto insurance whether they own a car or not. California’s Compulsory Financial Responsibility Law makes drivers and vehicle owners financially liable for their actions.

California minimum liability limits are set at $15,000 for personal injury/death caused to one person, $30,000 if multiple injuries result from the same accident, and $5,000 of property damage for any one accident.

Drivers can demonstrate financial responsibility via one of four methods: maintaining auto insurance coverage which meets applicable minimum limits, placing a cash deposit of $35,000 with the Department of Motor Vehicles (DMV), applying for a certificate of self-insurance from the DMV (for fleet owners of more than 25 vehicles), or purchasing a surety bond for $35,000 from a licensed California insurer.

While neither comprehensive or collision coverages are required in California, they are both strongly recommended. More information regarding California auto insurance laws can be found online at http://www.insurance.ca.gov/.