California Minimum Liability Limits Change: What You Need to Know

California drivers will need more insurance coverage beginning Jan. 1, 2025.  Learn how this may affect you.

California is home to some of the country’s lowest minimum liability limits, despite its population and number of drivers. Since 1967, California’s minimum liability limits have remained unchanged, even with increased medical care and vehicle repair costs.

California passed Senate Bill 1107, Protect California Drivers Act, which will increase minimum liability requirements for the first time in over 50 years in order to better financially secure drivers.

What are liability limits?

To start, liability insurance covers the cost of injuries and property damage you cause to others in an accident. Liability insurance is included in most auto insurance policies. In California, liability includes bodily injury and property damage.

Liability limits are often the highest amount an insurance company agrees to pay because of an accident or injury to a person. Most insurance companies offer different liability limits for customers to choose from, ranging from the state-required minimum to higher limits for more protection.

The current state-required minimum in California is $15,000 per person, $30,000 per accident, and $5,000 for property damage. Meaning, if the damage to another person's car is more than $5,000 and you can’t pay, they could sue to get the rest of the money needed for repairs.

What is the Protect California Drivers Act?

Effective January 1, 2025, the Protect California Drivers Act will increase minimum coverage requirements to $30,000 per person, $60,000 per accident, and $15,000 for property damage.

Benefits of increased limits

These new liability limits in 2025 offer more protection for drivers because they better reflect the real costs of accidents today. California's existing minimum liability limits are outdated, leaving many drivers underinsured in the event of a serious accident.

The Protect California Drivers Act is meant to help drivers who may be underinsured and face high out-of-pocket expenses not covered by current insurance limits.

Higher limits mean your insurance is more likely to cover expenses like medical bills and car repairs of others if you’re in an accident that you cause.

With California drivers having more coverage, it may be less likely someone will take you to court to cover damages that go beyond your coverage.

Questions?

Contact your insurance broker to review these changes and see how these changes will affect you in 2025.

Contact the California Department of Insurance for additional questions about Senate Bill 1107: 800-927-4357.