Licensing, insurance and the law
What is the minimum liability insurance coverage California requires for property damage?
- $15,000. Correct answer
- $30,000.
- $60,000.
Why
The handbook lists three minimum liability amounts, and each distractor here is one of the other two: $15,000 covers property damage, $30,000 one death or injury, and $60,000 a death or injury reaching more than one person. You must carry proof of financial responsibility whenever you drive and for the drive test, and show it to the other drivers if you are in a collision. Driving uninsured is expensive in a different way: if you are in a collision without proper coverage, your driving privilege can be suspended for up to four years, no matter who was at fault. Drivers who cannot afford a policy may qualify for the California Low Cost Automobile Insurance Program.
Where this comes from
California Driver's Handbook, June 2025 edition. The correct answer is $15,000.
- Section 10. Financial Responsibility, Insurance Requirements, and Collisions › Insurance Requirements, page 76
- Section 10. Financial Responsibility, Insurance Requirements, and Collisions › Driving Without Insurance, page 76
- Section 10. Financial Responsibility, Insurance Requirements, and Collisions, page 76
The rule behind this one
License, points and insurance in California goes through the whole topic, with the page of the California Driver's Handbook behind every rule.
More on licensing, insurance and the law
- You are in a collision in which another driver is injured. Within what time must a report be made to law enforcement?
- You are 17 and applying for your first driver's license. How much supervised practice driving do you need, and with whom?
- How many attempts do you get at the knowledge test before you must reapply, and how long must a minor wait after failing one?
- You are in a collision and you do not have proper insurance coverage. What happens to your driving privilege?