Minimum liability coverage for vehicles in California went unchanged for decades. Historically, small liability limits meant that drivers were more likely to pay out-of-pocket for the excess. But on January 1, 2025, Senate Bill 1107 (or the Protect California Drivers Act) took effect. The bill drastically increased the state’s mandatory minimum liability limit and replaced old requirements.
Before the new bill, California’s minimum auto insurance limits had been in place since 1967. Liability increases now better reflect repair costs and medical treatment expenses after inflation.
Old vs new liability limits
California requires all drivers to carry proof of liability insurance at all times. You will need to provide it in situations where police may request records from you. When you are involved in auto accidents, your insurance helps protect your finances. Before January 1, 2025, the state had lower auto liability insurance, as seen below.
- $15,000 limit for bodily injury or death per person in an accident.
- $30,000 total for bodily injury or death per occurrence.
- $5,000 for damage to property per accident.
Under these old 15/30/5 limits, insurance companies do not pay costs above your policy limits. You may have to pay out of pocket when expenses go above the minimum.
Currently, California sets the minimum liability to 30/60/15. These values represent the following mandatory minimums:
- $30,000 limit for bodily injury or death per person in an accident.
- $60,000 total for bodily injury or death per occurrence.
- $15,000 for damage to property per accident.
With the new minimum liability amounts, insurance companies absorb more of the medical and financial costs of accidents. However, the new minimum liability may place greater responsibility on you as a driver.
Transitioning into new systems
Even with new laws in place, remember that many drivers are underinsured—or even carry no insurance at all. Drivers with no (or inadequate) insurance policies may not be able to fully cover expenses even with their assets. If you are unlucky enough to get into an accident involving them, suing them may not be viable.
In cases like these, your policy may be the only thing that might save you from unnecessary out-of-pocket costs. Uninsured motorist coverage may be the solution to this dilemma.
Confidence on CA highways
California law does not require you to have uninsured or underinsured motorist (UM/UIM) coverage. UM/UIM coverage pays for losses when drivers go uninsured or underinsured.
In the aftermath of a transition, UM/UIM coverage provides peace of mind in worst-case scenarios. The risks of financial losses are high in California auto accidents. When cases get complex and disputes about financial compensation arise, having legal support can help you face the challenges with confidence.