Average Rates for Car Insurance in California

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California is one of the more expensive states to insure a car in, and it's worth understanding both the minimum coverage you're required to carry and why rates have been moving the way they have.

Minimum liability coverage

The state of California requires all drivers to carry bodily injury and property damage liability coverage. As of January 1, 2025, the minimum allowable coverage is $30,000 per person up to $60,000 per accident in bodily injury coverage and $15,000 for property damage coverage — up from the previous $15,000/$30,000/$5,000 minimums.

Source: California DMV, "Auto Insurance Requirements."

Rates have been rising, not falling

California auto insurance premiums rose roughly 13% in 2023 and about 15.4% in 2024, and insurers were approved for further increases in 2025 and 2026. A few factors are driving this: the January 2025 minimum-coverage increase itself (more required coverage means a higher base premium), rising vehicle repair costs as cars pack in more sensors and driver-assist hardware, high accident frequency in congested metro areas, recent wildfire and disaster-related claims, and rising vehicle theft. Most of these pressures are structural rather than temporary, so there's no clear sign of rates coming back down soon.

Source: Freeway Insurance, "California Car Insurance Rate Increases: Key Figures and Reasons," updated September 4, 2025.

California's financial responsibility laws

You don't necessarily have to purchase a standard automobile insurance policy. You can, if you choose, establish your financial responsibility by giving the Department of Motor Vehicles a deposit of $75,000 in cash (raised from $35,000, effective 2025). Business owners can self-insure fleets of vehicles or provide a bond for the same amount.

Researching a carrier

Before you commit to a policy, it's worth calling a couple of local agencies to see which carriers are actively writing business in your area, checking your state's Department of Insurance for complaint records, and looking up a carrier's AM Best financial-strength rating (A or above is generally considered strong). None of this takes long, and it's a better way to shortlist carriers than picking one at random.

Every driver's situation is different, so the best way to know what you'll actually pay is to compare real quotes. Enter your information below and we'll help you find competitive quotes from carriers in California.

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

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