California’s Increased Minimum Auto Insurance Limits for 2025

SB-1107 was approved by California’s governor on September 28, 2022. It goes into effect on January 1, 2025. The bill represents an increase in California minimum car insurance.

The bill increases the minimum liability limits in California regarding bodily injury, death and property damage.

Call us today for a free consultation if you or a loved one has been injured or killed in an automobile accident. We don’t charge a fee until and unless we recover compensation and we’ve been representing car accident victims since 1990, having recovered over $750,000,000 for our clients.

2025 California Minimum Auto Liability Limits

Prior to January 1, 2025, the minimum coverage regarding auto insurance in California was:

• $15,000 for the injury or death of any single person
• $30,000 for the death or bodily injury of all people
• $5,000 for property damage that others incur in an accident

These limits had been in place since 1967. Beginning on January 1, 2025, the new minimum limits in California will be:

• $30,000 for bodily injury liability per single person
• $60,000 for bodily injury liability of all people in an accident
• $15,000 for property damage liability in an accident

These new liability coverage limits have been mandated by the Protect California Drivers Act, SB-1107. They apply to all California drivers, including those who drive recreational vehicles, commercial vehicles and private passenger vehicles. This law seeks to provide accident victims and drivers with better financial protection, via an increase in coverage for repairs and medical bills. The California Insurance Code will be updated to reflect these new limits.

The new limits will stay in effect for a period of 10 years. In 2035, they will increase to 50/100/25.

Collision or comprehensive insurance doesn’t meet the requirements for vehicle financial responsibility.

Some things you should know about this new law:

Existing policies: Certain insurance policies such as Mercury, will automatically update their policies to meet these new requirements. Should you not be a Mercury customer, check with your insurer to find out if they will make these changes for you. Auto insurance policies that have insurance minimums below the new minimums will get adjusted automatically in order to meet these new requirements when the policies are renewed.

Rate increases: Whether rates are increased for customers will be determined by insurance companies. Those who carry insurance at the minimum level may see rate increases. Those who carry more insurance than the new minimum coverage required may not see a rate increase.

Penalties: It is illegal to drive without insurance. You need liability coverage for vehicle registration. Second offenses for driving without mandated insurance might lead to fines of $200-500, suspended license or vehicle impoundment.

New minimum liability requirements can be met by:

• Buying auto liability coverage
• Providing the DMV with a cash deposit of at least $75,000
• Obtaining a self-insurance certificate, issued by the DMV
• Getting a surety bond worth at least $35,000 from a company licensed in California

For information regarding self-insurance or cash deposits, contact DMV’s Financial Responsibility Unit by calling 916-657-6677 and selecting option number 2. To find a company who issues surety bonds, contact the Department of Insurance at 800-927-4357 or at their website.

Why Minimum Car Insurance Limits Are Increasing

The intent of the new limits is to make up for rising costs of vehicle repairs and medical care. The old minimums were the 47th lowest in the United States and had not been changed in a period of over 50 years.

Essentially, the new limits are increasing to keep up with inflation. Vehicle repair and healthcare costs have risen, so our minimum requirements needed to be updated accordingly to ensure that drivers are properly covered.

Will My Insurance Policy Be Impacted?

According to State Farm, all pre-existing policies with limits that are lower than the new limits will end up renewing at the new minimum coverage limits on or after January 1 of 2025, as the new state law mandates. Should your coverages get increased in order to meet the new minimum, your premium could be impacted.

Should you be concerned regarding how your budget is impacted by this, now is a great time to go over your policy with an insurance agent. Your agent can help you to explore potential auto insurance discounts or find ways that your coverage can be optimized.

Preparing for New Minimum Auto Insurance Limits

You may wish to review your policy, the value of your policy, and consider switching policies if you are unhappy with the price of insurance.

Be prepared for your premiums to increase if your coverage increases.

Ask your insurer about discounts, as these may be able to help you offset the costs associated with the new higher limits.

What Is Liability Insurance?

Liability coverage helps to pay for damage or injuries which you cause others to incur. It does not pay for any injuries to yourself or those in your household. You can, however, purchase medical payments coverage for you as well as members of your household.

There are two types of liability insurance:

Bodily injury liability: This ends up covering legal fees, lost wages and medical expenses which are associated with the injuries that you cause to others in accidents. It might also cover funeral costs or pain and suffering.

Property damage liability: This ends up covering the cost to replace or repair someone else’s property which got damaged by an accident. This usually refers to other vehicles being damaged, but may also include damage to structures like fences or buildings.

Liability coverage won’t cover your own injuries or your own expenses. These are covered by comprehensive or collision coverage. Comprehensive coverage covers things outside of your control, like damage from animals, vandalism, theft and weather. Collision coverage protects your vehicle from any damage caused by collisions, whether you collided with a wall, another vehicle or anything else.

Drivers who do not have auto insurance can be held liable for paying for injuries or damages suffered in accidents. This may include legal fees, property damage and medical bills.

There are other types of car insurance coverage. These include:

Uninsured motorist property damage: This covers as much as $3,500 regarding car damage should you get in an accident with an at-fault uninsured driver who is identified.

Rental car reimbursement: This covers costs of rental cars while your vehicle gets repaired after an accident that is covered.

Medical payments coverage: This will pay for medical bills for your passengers and yourself, no matter whose fault the accident is.

What Is The Penalty for Violating Insurance Limits

In the State of California, serious penalties can result from driving without adequate insurance. First offenses will lead to:

• Tickets
• Fines between $100 and $200
• Possible vehicle registration suspension

Second offenses can lead to fines from $200 to $500. They can also lead to license suspension and vehicle impoundment. Due to this, it is crucial to comply with California’s auto insurance requirements.

What Is the 15/30/5 Rule?

The 15/30/5 rule is the requirement for minimum liability insurance for California drivers. It refers to $15,000 regarding death or injury to a single person, $30,000 for death or injury to multiple people, and $5,000 for property damage.

These limits have been in place in California since 1967, but are changing on January 1, 2025. The new California auto insurance limits will double – they will be 30/60/15.

High-risk drivers may obtain coverage through a plan called the California Automobile Assigned Risk Plan.

What Is the 50/100/50 Rule for Liability Insurance?

The 50/100/50 rule refers to a set of liability insurance limits. It refers to $50,000 per injury or death to a single person, $100,000 for injury or death to multiple people, and $50,000 for property damage.

The amount of liability coverage you will carry will depend upon your personal preference as well as your state’s laws. Every state sets minimum liability coverage policy limits.

What Does 15/30/10 Mean in Insurance?

Regarding car insurance, 15/30/10 represents the liability coverage limits of a policy. It means $15,000 for injury or death to a single person, $30,000 for injury or death to multiple people and $10,000 for property damage.

Liability coverage will pay for damage to property or people caused by a policyholder in an auto accident. The majority of states require a minimum amount of liability coverage, but this minimum is often not enough to protect you fully.

Starting on January 1, 2025, 15/30/10 coverage will be inadequate in California. 30/60/15 coverage will be the new minimum by law.

What Does It Mean if the Coverage Limits Are $250000/$500000?

Should your insurance coverage limits be listed as “$250,000/$500,000,” this means $250,000, at the maximum, will be paid by your policy for injury claims per person who is involved in an accident. It means that $500,000, at maximum will be paid for all injuries which happen in an accident. This means if multiple people get hurt, their total payout cannot exceed $500,000.

Will Car Insurance Go Down in 2025 in California?

No. Car insurance in the State of California is expected to go up in 2025.

The minimum liability limits will be increased in California beginning on January 1, 2025. While coverage will increase, premiums will also likely increase.

Drivers in California should expect to see larger-than-normal increases in rates in the year of 2025. It has been estimated by some that rates may increase as much as 54 percent.

It is predicted by insurance experts that 1.66 million drivers in California, or more, will get impacted by rate increases. The number may rise depending upon the number of drivers who currently possess coverage near or at the minimum.

How Our Lawyers Can Help

Call us today for a free case evaluation, fill out this page’s free case evaluation form or text us from this page if you or a loved one has been injured or killed in a car accident which was not your fault. We can help you recover financial compensation for lost wages, medical bills, pain, suffering, loss of earning capacity, property damage, wrongful death and more.

We’ve been handling auto accident cases for over 30 years and have recovered hundreds of millions of dollars for clients. Our vast experience is what will allow us to recover the most money possible to compensate you for your injuries.

If you can’t afford to have your auto accident injuries treated, we can get you to doctors who won’t charge you for treatment until your case is over. Doctors do this for our auto accident clients because doctors know that we get fantastic results for our clients.

We won’t charge any fee to represent you in your auto accident claim until and unless we recover compensation on your behalf. Our only fee to handle your accident case is a percentage of whatever we recover for you, meaning no upfront fee or out-of-pocket fee will be charged.

Call us today for a free consultation so we can help you get the compensation you deserve.