California's New Auto Insurance Limits [2025 Update]

Starting in 2025, Senate Bill 1107 will increase minimum liability coverage for all California drivers. As these changes draw near, it is important to understand how the new California auto insurance law​ will impact your insurance coverage and what you will need to do moving forward to comply with the updated policy limits.

Overview of California’s Current Auto Insurance Coverage

Currently, California’s DMV requires every driver to own a minimum auto insurance coverage to legally operate a vehicle. The current minimum liability limits include:

• $15,000 per person
• $30,000 per accident
• $5,000 property damage

In addition, all California drivers must have proof of insurance to show that they have satisfied the state’s minimum liability requirements. This will need to be provided in the following situations:

• Vehicle registration
• Traffic stops
• Car accidents

Proof of insurance can be presented with either a physical or digital insurance card. These rules were established to ensure all drivers had some form of insurance to compensate for damages caused in the event of a car accident.

Senate Bill 1107: How Does This Affect Auto Liability Limits?

On September 28, 2022, Governor Newsom signed Senate Bill 1107, also referred to as the Protect California Drivers Act. This law was enacted to increase the minimum liability requirement to ensure that drivers in financial hardships are protected and properly cared for in the event of a car accident. The new minimum liability requirements will be adjusted to the following:

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

By 2035, liability coverage will rise again to:

• $50,000 per person
• $100,000 per accident for bodily injury

What Does Increased Auto Insurance Limits Mean for California Drivers?

The increase in California’s auto insurance limits means that drivers will have greater financial protection against collisions. In addition, the new minimum coverage will help reduce the risk of paying out-of-pocket expenses for any injuries or damages you incurred that may exceed your insurance coverage. However, some drivers may expect to see higher premiums as insurance providers adjust their rates to correspond to the new policy limits.

What Are The Non-Compliance Penalties and Consequences?

In California, violating car insurance coverage can lead to serious penalties. A first offense will get you:

• A ticket
• A fine between $100 to $200
• Possible suspension of your vehicle registration

A second offense may result in a higher fine of $200 to $500 and in some instances, you may face possible vehicle impoundment and suspension of your license. With that in mind, it is vital that you comply with the state’s auto insurance requirements.

Why Are California’s Auto Insurance Limits Being Updated?

California’s auto insurance limits are being updated due to economic inflation. As medical treatments and vehicle repairs continue to increase, lawmakers decided it was time to have the policy limits reflect these changes.

Will This Affect Uninsured Motorist Coverage?

The new California auto insurance law​ will without a doubt have an impact on people’s liability coverage, especially for uninsured motorist (UM) coverage. Since we will now be required to carry higher liability limits, more drivers will need to meet the updated auto insurance policy. The bill will ultimately reduce the need for UM coverage as financial risks may lessen in accidents involving uninsured drivers.

But, in some cases, owning UM coverage can be beneficial if you are involved in a serious accident in which the new minimums may not be enough to fully cover the costs of damages you incurred.

Do I Need to Do Anything?

No further action is needed. Existing policies will be renewed with the adjusted minimum limits on or after January 1, 2025. Feel free to reach out to your auto insurance company to take a look at your coverages and check for any potential discounts that may be offered.

Other Types of Auto Insurance Coverage

There are other types of auto insurance coverage that can be provided to financially protect drivers against a car accident. Let’s explore what each one has to offer.

Collision Coverage

Collision coverage helps pay for repair or replacement fees if your vehicle was damaged in a car accident regardless of who is at fault. This applies in cases where the damage was caused by other vehicles or objects. Collision coverage may also become effective if another driver strikes your car and they do not have enough insurance to pay for the damage.

This is optional if your vehicle is paid off. But, it is typically required to have if you are financing or leasing your vehicle. 

Comprehensive Coverage

Comprehensive coverage protects your vehicle from damage that is caused by any of the following:

• Theft
• Fire
• Falling objects
• Vandalism
• Accidents involving animals
• Weather-related damage

Similar to collision coverage, comprehensive coverage is also optional if your vehicle is paid off, and may be required by your lender if it is being leased or financed. Compensation will be based on the actual cash value of your vehicle. In addition, you will need to pay your given deductible.

Medical Payments Coverage

Medical payments coverage, also called MedPay, is optional auto insurance. It helps you pay for medical bills associated with car accidents regardless of who caused it. MedPay will cover:

• You
• Your passengers
• Your family members

Specific expenses they can assist with include:

• Hospital fees
• Doctor visits
• Surgical procedures
• Ambulance expenses
• Funeral costs

What West Coast Trial Lawyers Can Do For You

Car accidents can be difficult to navigate on your own, especially when it comes to understanding auto policies. Drivers may find themselves feeling lost or confused with the fine print of their coverage limits. The claims process itself can also add an extra layer of stress with insurers often trying to minimize payouts.

Disputes over policy limits are common in car accident cases, particularly if the incident involves an at-fault driver who has insufficient insurance coverage. These factors alone may feel overwhelming to take on by yourself. But, with legal representation, the lawsuit can go by more smoothly.

At West Coast Trial Lawyers, our car accident lawyers are readily available to step in to help you understand your coverage, negotiate with your insurance company, and advocate on your behalf to ensure you are given maximum compensation to cover accident-related costs.

To schedule a free consultation, you can get in touch with us by calling (213) 927-3700 or completing our easy online contact form.