Do You Need Insurance to Register a Car in California?

Yes, in California, you’ll need auto insurance to register a car.

Proof of Liability Insurance

You must carry proof of insurance in your car at all times. You’ll need to provide it when you renew your car registration, or if you’re pulled over or you’re involved in an accident.

Vehicle Registration Suspensions

If the Department of Motor Vehicles (DMV) doesn’t have your proof of insurance, your registration will be suspended, meaning you won’t be able to drive or even park your car on public roadways until you submit your proof of insurance.

After you purchase an insurance policy, you can register your car. California law requires your vehicle to be registered, whether you’re driving or parked on a public road, whether temporarily or for a long time (for example, you’re broken down on the highway).¹

Documentation You’ll Need

To register your vehicle with the DMV, you’ll need the following documents:

• Applicable title transfer fees or use tax
• Application for Title or Registration for new vehicles or California Certificate of Title for used vehicles registered in-state
• Completed Vehicle/Vessel Transfer and Reassignment Form
• Declaration of Gross Vehicle Weight / Combined Gross Vehicle Weight form
• Signature of seller/lienholder on Certificate of Title
• Signature on Certificate of Title
• Smog certification
• Statement of Facts form
• Use tax or other fees
• Vehicle Emission System Statement form

For registration renewal, you’ll need the following:

• License plate number
• Last five digits of vehicle identification number (VIN)
• Renewal notice confirming your current address
• Payment information

Surprisingly, given that the cost of living in California is higher than the rest of the country, full coverage auto insurance in California is cheaper than the national average. State consumer protections help keep insurance rates stable. For example, California requires insurers to offer a 20 percent Good Driver Discount to drivers who meet certain criteria. Additionally, low-income drivers can shop for insurance with California’s Low Cost Auto (CLCA) Insurance program. To qualify, drivers must have a good record (or be new drivers) and meet the household income threshold.

Insurance Rates in California

On average, full coverage insurance in California costs $1,899 annually. GEICO ($1,469 annually) and USAA ($1,545 annually) offer some of the cheapest insurance in California.

As for minimum coverage, California’s average cost is $669 annually. On average, GEICO ($456 annually) and CSAA (AAA) ($526 annually) have the cheapest minimum coverage rates.

Ways to Save

Take these steps to reduce the cost of auto insurance in California:

1. Utilize any car insurance discounts your provider offers, such as accident-free or military discounts.
2. Raise your deductible (but make sure you will be able to pay it if you get into an accident).
3. Drop some insurance coverage. For example, if you have an older car that’s fully paid off, comprehensive and collision coverage may not be necessary.
4. Follow the speed limit in order to avoid traffic violations which could raise the cost of your auto insurance.
5. Compare car insurance quotes from multiple providers, using the same insurance information as your current policy.
6. Check if you are eligible for the California Low Cost Auto Insurance Program at: https://www.insurance.ca.gov/0400-news/0102-alerts/2024/California-s-Low-Cost-Auto-Insurance.cfm

Minimum Coverage

These are the minimum liability limits required in California:

• $30,000 for injury/death to one person
• $60,000 for injury/death to more than one person
• $15,000 for property damage liability

Full Coverage

California’s insurance requirements don’t include collision and comprehensive coverage, medical payments coverage, or uninsured motorist coverage. We recommend getting full coverage in case of events like:

• Damage to your vehicle in an accident, regardless of fault
• Collisions with things other than cars, like potholes
• Floods or fires
• Collisions with uninsured or underinsured motorists
• Hit-and-runs
• Lost wages due to car accidents
• Auto vandalism
• Theft of entire car or parts of the car

In addition to full coverage insurance, you can purchase GAP (guaranteed asset protection) insurance which covers the difference between what you owe on the car and the actual value of the car if it’s totaled or stolen. If you leased or financed your vehicle, your lender will likely require you to carry full coverage and gap insurance.

Penalties for driving without insurance in California can include fines, driver’s license suspensions, or even vehicle impoundments.³ If you cancel your coverage, notify the California DMV and submit an affidavit of non-use to prevent your car registration from being suspended.

In order to register a car in California, you will need proof of auto insurance. Without insurance, your registration will be suspended. Maintaining a good driving record, comparing quotes from multiple providers, and adjusting your coverage can all help you lower your insurance costs. GEICO, Mercury, USAA, Travelers, and State Farm are some of our favorite auto insurance companies in California.