California requires every driver and vehicle owner to carry liability insurance. The minimums are $30,000 for injury or death to one person, $60,000 for more than one person, and $15,000 for property damage. When a parent or guardian signs a minor's permit or license application, the DMV says they "accept financial responsibility" for that minor until 18.
What car insurance does California require?
Every vehicle driven or parked on California roads must have liability insurance. The DMV also calls this financial responsibility. Liability insurance pays for injury or damage you cause to other people. The minimums below appear in the Driver's Handbook, on the DMV's insurance page and in the Department of Insurance's auto guide.
| Coverage | Minimum |
|---|---|
| Injury or death to one person | $30,000 |
| Injury or death to more than one person | $60,000 |
| Damage to property | $15,000 |
- Only liability coverage counts. The DMV says collision insurance does not meet the financial responsibility requirement.
- The minimum is a floor. The Department of Insurance says you are responsible for any damage you cause beyond your limits. It suggests asking your agent about higher limits.
- There are other forms. A cash deposit with the DMV, a DMV self-insurance certificate or a surety bond can also meet the rule. Most families use a liability policy.
What does proof of insurance mean?
Proof of insurance is the card or document from your insurance company that shows the car is covered. The DMV says the card must show the company's name and address, the period of coverage and the policy number. Keep it in the car at all times.
| Situation | Who asks |
|---|---|
| Any traffic stop | Law enforcement |
| After a collision | The other drivers involved |
| The behind-the-wheel drive test | The DMV, for the car used on the test |
| Renewing the vehicle registration | The DMV |
The Department of Insurance says that if you do not show proof when asked, you will get a ticket. The DMV also suspends a vehicle's registration if it does not receive proof of insurance, and owners must notify the DMV before they cancel a policy.
What does a parent accept by signing a teen's application?
By signing, a parent or guardian accepts financial responsibility for the teen's driving. The handbook says parents or guardians of drivers under 18 "pay for damages if the driver is involved in a collision." At 18, drivers take on their own financial responsibility.
The law says the same. Under Vehicle Code 17707, the person who signed the minor's application is "jointly and severally liable" with the minor. That covers damages from the minor's negligent driving. In plain words, the signer and the teen share responsibility for those damages.
What happens if you drive without insurance?
Driving uninsured can cost the license. The handbook says a driver in a collision without proper insurance faces a suspension of up to four years. That is true no matter who was at fault. The Department of Insurance adds that the vehicle could be impounded.
If cost is the problem, a state program can help. The California Low Cost Automobile Insurance Program is for drivers who meet its income limits. Details are at mylowcostauto.com or 1-866-602-8861. Before buying any policy, the handbook says to check that the agent, broker or company is licensed by the California Department of Insurance.
What should parents check before a teen starts driving?
Check the policy and the paperwork before the first practice drive. The Department of Insurance tells policyholders to tell their agent, broker or company when there are new drivers in the household. It also warns that a policy can exclude some drivers. Then it will not cover crashes when they drive.
- Read your policy and call your agent, broker or company to ask how it treats a permit driver and a newly licensed teen.
- Confirm the proof-of-insurance card in each car is current and shows the policy number and coverage dates.
- Make sure the car your teen will use for the drive test has current proof of insurance and registration.
- Go over what to do after a collision together, including where the insurance card is kept.
Quick answers
Sources
- California Driver's Handbook, Section 10: Financial Responsibility, Insurance Requirements, and Collisions (opens in a new tab)
- California DMV: Insurance Requirements (opens in a new tab)
- California DMV: Learner's permits (financial responsibility note) (opens in a new tab)
- California Department of Insurance: Auto Insurance Information Guide (text version) (opens in a new tab)
- California Vehicle Code 17707 (liability of person signing a minor's application) (opens in a new tab)
- California Vehicle Code 17711 (request to cancel a minor's license) (opens in a new tab)
Checked: October 4, 2026. Rules and forms can change; recheck the official page before acting.
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