California requires all drivers to carry auto liability insurance in order to legally drive within the state. Starting January 1, 2025, California drivers will see a significant change in their minimum auto liability insurance requirements. For the first time in over 56 years, the state has updated its mandatory coverage limits to better protect drivers and car crash victims alike.
What is Liability Insurance?
Auto liability insurance helps cover monetary damages if a person is responsible for a vehicle related incident. These coverages are called bodily injury coverage and property damage coverage. If you are injured in a car collision and the other person is at fault, that person’s auto liability insurance policy will pay for damages related to your injuries and damage to your vehicle.
What is “Uninsured or Underinsured Motorist” (UM/UIM) Coverage?
UM/UIM coverage protects you if the at-fault driver cannot fully pay for the damages they cause to you. More specifically, uninsured motorist coverage applies if the at-fault driver is illegally driving without liability insurance. Underinsured motorist coverage applies if your damages exceed the amount of the at-fault party’s liability insurance policy. Purchasing such coverage is extremely important, as it is very common for negligent drivers to have little or no insurance coverage.
New Minimum Liability Limits
Under the new law, known as the Protect California Drivers Act (Senate Bill 1107), the minimum liability limits will increase to:
- $30,000 for bodily injury or death of one person (up from $15,000)
- $60,000 for bodily injury or death of all persons in one accident (up from $30,000)
- $15,000 for property damage (up from $5,000)
- Uninsured/underinsured motorist coverage (UM/UIM) will also increase to the $30,000/$60,000/$15,000 policy limits.
All existing policies with lower limits will renew at the new minimum limits on or after January 1, 2025, as mandated by this new state law.
Why the Change?
Long overdue, the previous limits, set in 1967, had become exceedingly outdated due to the changing financial landscape and inflation. As medical care, vehicle repair, and the costs of living have increased exponentially in the last 50 years, the increased statutory limits are designed to provide better financial protection for both drivers and car crash victims.
Another increase is scheduled for 2035, when the limits will rise to $50,000 per person injured/$100,000 per personal injury incident/$25,000 property damage.
If you have been injured in a traffic collision through no fault of your own, The Zwerdling Law Firm is here to help. If you have been injured in a traffic collision through no fault of your own, please call (707) 798-6211 for a confidential case evaluation.