Buying car insurance as a new driver or with no US driving record (California)

Just got a US license, or only have a license from home? Three questions come up every time: how much insurance the law requires, why quotes vary so much, and whether insurance follows the car or the driver. Using California as the example, here is what the California Department of Insurance (CDI) and the state insurance code say. This is general information, not insurance advice.

1. What the law requires: 30/60/15

CDI explains that every owner and driver must be able to show financial responsibility, and most people do it with liability insurance. The minimum limits for a standard policy are:

Liability does not pay for your own injuries or your own car. That takes collision and comprehensive coverage, which lenders and leasing companies normally require. Keep proof of insurance in the car: without liability insurance you can be ticketed, your license suspended and the car impounded. You also need proof of insurance and registration on drive-test day.

2. What sets your premium

Proposition 103, now California Insurance Code §1861.02, requires premiums to be based on these factors in decreasing order of importance:

1. your driving safety record;
2. the number of miles you drive each year;
3. the number of years of driving experience;
4. other factors approved by the Insurance Commissioner.

Regulation 10 CCR §2632.5 defines years of driving experience as the years the insured has been licensed in any jurisdiction. Read literally, years licensed abroad count, but each company decides how to verify them (original license, translation, driving abstract), so disclose it and ask. The same rule lists optional factors such as vehicle type, use (commute or pleasure), multi-car households and completing a driver training or defensive driving course.

Expect to be asked how long you have driven, your annual mileage and the records of every driver in the household; most insurers also pull your DMV record. Fill in the application truthfully, read it before signing and never sign a blank form.

3. The Good Driver discount, and why new drivers pay more

Every insurer must offer Good Driver coverage to people licensed at least three consecutive years with no more than one point on their record, and Good Driver rates must be at least 20% lower than that company’s non-Good-Driver rates. A brand-new license may not qualify yet, which is one reason first quotes are high. Ask the insurer how it counts years licensed.

4. Does insurance follow the car or the driver?

There is no one-line answer; it depends on the policy. CDI notes that your proof of insurance lists the insured vehicles and named insureds, that some drivers may be excluded from a policy (so it will not pay when they drive), and that you should tell your insurer when you buy or sell a car or add a driver. Before lending your car or borrowing one, read the declarations page and exclusions, or call the insurer.

5. Step by step

1. Choose coverages. Liability is mandatory. Collision, comprehensive, uninsured motorist (insurers must offer it; declining requires a signed waiver) and medical payments are your choice.
2. Get several written quotes. CDI says prices vary even in the same area; its premium survey is a useful benchmark.
3. Check licenses. Verify the company, agent or broker on the CDI website or at 1-800-927-4357.
4. Ask about fees. Agents are paid by the insurer; brokers usually charge a broker’s fee that is not set by law and can be negotiated. Ask about installment fees.
5. Review the policy when it arrives and correct errors in writing right away.

6. Low income: California’s Low Cost Auto Insurance (CLCA)

CLCA offers liability-only coverage at 10,000 / 20,000 / 3,000, lower than the standard minimum but legal under state law. Eligibility per CDI: household income at or below 250% of the federal poverty level, a car worth $25,000 or less, a valid California license (AB 60 licenses accepted), and age 16+ (under 18 must be emancipated). Premiums vary by county; see mylowcostauto.com or call 1-866-602-8861.

7. If no company will insure you

Drivers with several accidents or tickets can get liability coverage through the California Automobile Assigned Risk Plan (CAARP), which every licensed auto insurer must take part in: 1-800-622-0954. After an accident, report it promptly to police and your insurer. If you were not at fault your premium should not go up; if you are found at least 51% at fault, it can rise at renewal.

Frequently asked questions

What is the minimum car insurance in California?

Liability limits of $30,000 per person and $60,000 per accident for bodily injury and $15,000 for property damage (30/60/15), in effect since 2025. It pays for damage you cause to others, not your own car.

Does my driving experience from another country count in California?

California regulation 10 CCR §2632.5 defines years of driving experience as years licensed in any jurisdiction. Each insurer decides how to verify foreign experience, so disclose it and ask when you get quotes.

Why is car insurance so expensive for newcomers?

Premiums depend first on your driving record, mileage and years licensed. A new US license often means no record and too few years for the Good Driver discount (3+ years licensed, at most 1 point), which must be at least 20% cheaper.

Is there cheaper legal car insurance for low-income drivers in California?

Yes. California’s Low Cost Auto Insurance program offers 10/20/3 liability coverage to income-eligible good drivers with a car worth $25,000 or less. AB 60 licenses are accepted.