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California increases auto insurance minimums for the first time since 1967

2/12/25

By: Matthew D. Walters

After 58 years, California has raised the minimum amount of auto insurance drivers are required to carry. The Protect California Drivers Act, Senate Bill 1107, went into effect on January 1, 2025, with the goal of catching up with inflation and providing greater protection to accident victims. The previous coverage limits had been in place since 1967, while medical treatments, vehicles, vehicle repairs, and other accident-related expenses have risen.

Prior to January 1, 2025, California required a minimum liability coverage of $15,000 for bodily injuries or death per person, $30,000 for injuries or death per occurrence, and $5,000 for property damage. SB 1107 increases these amounts to $30,000 for bodily injuries or death per person, $60,000 for injuries or death per occurrence, and $15,000 for property damage. These new minimum coverage amounts will remain in effect until 2035, where they will rise to $50,000 for bodily injuries or death per person, $100,000 for injuries or death per occurrence, and $25,000 for property damage. 

These changes bring both benefits and challenges to California drivers. On the positive side, this increase in coverage gives greater protection to at-fault drivers, as this increase in coverage better reflects the rising costs of medical care and vehicle repairs. However, these new liability coverage minimums also mean that insurance premiums will likely rise, perhaps resulting in an increase in uninsured drivers who already struggle to maintain auto insurance coverage. Additionally, these increased premiums may cause drivers who previously had a surplus of insurance coverage to lower their coverage to this new minimum, resulting in insufficient coverage for serious accidents. Our focus is on effectively managing resulting demands and lawsuits, regardless of their coverage limits, and SB 1107’s increase will not change our strategy of ensuring reasonable settlements while avoiding unnecessary financial exposure. 

 In conclusion, while these new minimum coverage amounts afford greater protections, they also bring challenges that may impact insured drivers state-wide. California drivers should carefully review their policies to ensure they are adequately covered for their individual needs. 

For more information, please contact Matthew D. Walters at matthew.walters@fmglaw.com or your local FMG attorney.