New California Minimum Liability Limits

Effective January 1, 2025, California has implemented new minimum auto insurance requirements, marking the first adjustment in over 50 years. This change, initiated by Senate Bill 1107—also known as the Protect California Drivers Act—aims to provide better financial protection for drivers in the event of an accident.

Understanding the New Minimum Liability Limits

The updated minimum liability insurance limits in California are now:

  • $30,000 for bodily injury or death per person (previously $15,000)
  • $60,000 for bodily injury or death per accident (previously $30,000)
  • $15,000 for property damage per accident (previously $5,000)

These increases reflect the rising costs of medical care and vehicle repairs, ensuring that drivers have adequate coverage to handle expenses resulting from at-fault accidents.

Implications for California Drivers

While these enhanced coverage limits offer greater financial security, they may also lead to higher insurance premiums. Drivers currently carrying only the previous minimum coverage should anticipate adjustments in their policy premiums to align with the new state requirements. It’s advisable to review your current auto insurance policy and consult with your insurance provider to understand how these changes may affect you.

Future Adjustments

Looking ahead, the Protect California Drivers Act stipulates another increase in minimum liability limits set for January 1, 2035:

  • $50,000 for bodily injury or death per person
  • $100,000 for bodily injury or death per accident
  • $25,000 for property damage per accident

This planned adjustment underscores the state’s commitment to maintaining insurance requirements that correspond with economic conditions and the actual costs associated with traffic accidents.

Staying Informed and Prepared

To ensure compliance and maintain optimal coverage, California drivers should:

  • Review and Update Policies: Confirm that your auto insurance policy meets or exceeds the new minimum requirements.
  • Consult with Insurance Providers: Discuss potential premium changes and explore options for maintaining affordable coverage.
  • Consider Additional Coverage: Evaluate whether higher coverage limits or additional types of insurance, such as uninsured motorist coverage, are appropriate for your needs.

By proactively adjusting to these changes, drivers can secure better financial protection and contribute to a more resilient and equitable insurance system in California.