Can I self insure my car in California?

I live in California and have heard about some people self-insuring their car rather than purchasing car insurance. The idea of not having to pay for typical insurance sounds great and I wondered if I could actually do this in California?

Yes, in California you can self insure, leave a cash deposit with the DMV, or purchase a surety bond from a company licensed to do business in California rather than purchase typical car insurance. Not having to pay for insurance sounds great!
However, you can only self insure in California if you own more than 25 vehicles registered in your name, so it is not designed for everyone. If you do not own more than 25 vehicles (as most of us don’t), you can leave a $35,000 cash deposit with the DMV or purchase a surety bond for $35,000. Keep in mind that even if you can afford these options, if you get in an accident, you will be required to cover your legal fees and the $35,000 may not cover all the associated costs.
If you are looking to self insure for financial reasons, you may want to consider using Jerry to compare personalized quotes. The average Jerry driver saves $879 a year on car insurance!
When purchasing a new policy, please make sure you are meeting the minimum car insurance required in your state. It could also be worthwhile to see if you are eligible for the California Low Cost Automobile Insurance Program.
If you are interested in leaving a cash deposit or learning more about California’s low cost option, you should reach out to your local DMV for more information.
Jack Walsh
Answered on Oct 22, 2021

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