California Auto Insurance

Financial Responsibility Laws
The statutory minimum limits of liability insurance in
California are as follows:
Bodily Injury Liability
• $15,000 for death or injury of any one person,
any one accident.
• $30,000 for all persons in any one accident

Property Damage Liability
• $5,000 for any one accident.
There are four ways to accomplish financial responsibility:
1. Coverage by a motor vehicle or automobile liability
insurance policy;
2. A cash deposit of $35,000 with the DMV;
3. A certificate of self-insurance issued by DMV to owners
of fleets of more than 25 vehicles; or
4. A surety bond for $35,000 obtained from an insurance
company licensed to do business in California.
All California drivers and owners must have at least the
statutory limits of minimum liability insurance or an approved
alternative way to pay for injury or property damage they may
cause. Penalties are very severe for non-compliance with this
section of the vehicle code.
When your car is in an accident for which you are found legally
liable, bodily injury (BI) liability covers your liability to others
for injuries to them. Property damage (PD) liability covers
your liability for damage to someone else’s property.
A policy with BI of $15,000/$30,000 and PD of $5,000
will pay out as follows:
• The maximum limit for one person’s injuries, medical expenses,
etc. is $15,000 under the bodily injury portion;
• If two or more people are injured, the maximum limit
for the accident will be $30,000;
• The maximum limit for damage to other people’s property
(their car, their fence, etc.) is $5,000.
Comprehensive coverage (other than collision), uninsured
motorist, medical payments and collision insurance are not
required by law.

The California Low Cost Auto Insurance program is
designed to reduce the high number of uninsured drivers.
The program provides low-income good drivers with an
affordable auto insurance option which satisfies California’s
financial responsibility laws. The program is available to
qualified persons living in eligible counties.
Briefly, the qualifications are based primarily upon:
• Household income
• Good driving record
• Vehicle value at time of purchase

To find out more about the program and see if you are
eligible call:
California Low Cost Automobile Insurance Program
(866) 60-AUTO-1
(866) 602-8861

(This program is brought to you by the California
Department of Insurance and administered by the California
Automobile Assigned Risk Plan.)