California New Auto Insurance Minimums – Here’s What You Need to Know

Starting January 1, 2025, California drivers will be required to carry higher minimum liability insurance limits, as mandated by Senate Bill 1107 (SB 1107). This update applies to private passenger vehicles, commercial vehicles, and recreational vehicles, ensuring greater financial protection for all motorists and accident victims.

New California Minimum Liability Insurance Limits

Under the updated law, the minimum liability coverage will increase to 30/60/15, meaning:

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

Why Is California Raising Insurance Minimums?

The current minimums haven’t changed in over 56 years, despite rising medical and vehicle repair costs. Increasing these limits ensures better financial protection for drivers and accident victims, reducing out-of-pocket expenses after an accident.

How Will This Change Impact Your Auto Insurance?

If your current policy has liability limits below the new requirements, it will automatically adjust upon renewal starting January 1, 2025. While this change enhances coverage, it may also result in higher insurance premiums.

To manage potential cost increases, consider:
✔ Reviewing your policy to ensure it aligns with your financial needs
✔ Asking about discounts for bundling, safe driving, or vehicle safety features
✔ Comparing insurance providers to find the best rates for your coverage

Do You Need to Take Action?

For most drivers, no immediate action is required—your policy will update automatically upon renewal. However, it’s wise to:

Consult an expert if you have legal or financial concerns about the change

Check your coverage to ensure it meets your needs

Look for available discounts to help offset potential premium increases

Have Questions About Your Insurance or Legal Rights?

Understanding new insurance laws can be complex. If you're unsure how SB 1107 will impact you, our experienced legal team is here to help. Contact us for a free consultation, and we’ll guide you through your options to ensure you're fully protected.

Contact Us Today for expert legal advice on auto insurance laws and coverage options.