California Auto Insurance: Requirements, Verification and Rate Options

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California regulates car insurance a little differently than most states. The California Department of Insurance (CDI), created in 1868, is overseen by an elected commissioner rather than one appointed by the governor, and since voters passed Proposition 103 in 1988, insurers have needed state approval before raising or lowering rates. Before you shop for a policy, it helps to understand what the state actually requires and how you can prove you're covered.

Minimum liability requirements

As of January 1, 2025, California requires drivers to carry at least $30,000 in bodily injury liability per person, up to $60,000 per accident, and $15,000 in property damage liability — roughly double and triple the previous $15,000/$30,000/$5,000 minimums.

Source: California DMV, "Auto Insurance Requirements."

Proving you're covered

You don't necessarily have to buy a standard insurance policy to satisfy California's financial responsibility law. The state accepts any of the following:

  • A standard auto insurance policy, shown with an insurance ID card;
  • A California Proof of Insurance Certificate;
  • A $75,000 cash deposit with the DMV, or a surety bond for the same amount (raised from $35,000, effective 2025);
  • Proof the vehicle is owned by a public government entity.

For most drivers, simply carrying a policy and an ID card is the easiest route — California's DMV has electronic access to insurers' records, so gaps get flagged automatically.

Pay-per-mile insurance

California allows insurers to offer pay-per-mile (usage-based) auto insurance, and it's available today — not just a future proposal. Unlike some states, California requires mileage to be tracked through odometer readings rather than a telematics device, and pricing is usually a small monthly base fee plus a per-mile rate (commonly somewhere in the $0.08–$0.14 per mile range, depending on the insurer and your rating factors). If you drive relatively few miles a year, it's worth asking whether a pay-per-mile option beats a standard policy.

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CarInsuranceHub editorial team. Last reviewed: September 16, 2026.

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