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California Auto Insurance Limits

Understanding How California Will Increase Its Auto Insurance Limits in 2025

    5 minute read

    For the first time in over 50 years, California is preparing to increase its minimum liability auto insurance requirements. And for good reason. With over 27 million licensed drivers, the Golden State is home to some of the country’s lowest minimum insurance requirements, which have remained unchanged since 1967. But what exactly does that mean, and how will increasing state-required insurance limits help protect citizens? To help you understand the new auto liability insurance limits in California, we compiled this guide to answer any questions you may have.    

    How Will California’s Minimum Auto Insurance Requirements Change?

    On January 1, 2025, California will implement new minimum auto insurance limits for its drivers. The change, mandated by Senate Bill 1107—also called the Protect California Drivers Act—was enacted to help provide better protection for drivers after an accident. Since 1967, California’s limits have remained the same while the cost of healthcare and auto repairs have continued to increase. In fact, with its current limits, California holds some of the lowest auto liability limits in the country, even though it has more licensed drivers than any other state.

    Currently, California drivers are required by law to carry liability auto insurance with the minimum limits of 15/30/5, which means:

    • $15,000 for bodily injury or death per person
    • $30,000 for bodily injury or death per accident
    • $5,000 for property damage per accident

    However, when the new law goes into effect on January 1, 2025, the state’s minimum liability insurance requirements will increase to:

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

    These new limits will remain in effect for ten years until 2035, when they will increase again to 50/100/25.

    What Does Auto Liability Insurance Cover in California?

    person in California with liability insurance taking photos of car damage

    Liability insurance is a type of auto coverage that protects you financially if you are found responsible for causing injury to another person or damage to their property. Liability auto insurance does not cover damage to your car, but it could prevent you from paying out of pocket for damage you cause, depending on your policy’s limits. This type of coverage is mandatory in nearly every state.

    Liability insurance has two types of coverage:

    • Bodily injury liability insurance (BIL): This will cover the cost of medical care, lost wages, legal fees, and funeral costs if you injure someone in an accident you are responsible for.
    • Property damage liability insurance (PDL): This will cover the cost of repairing another person’s property, such as a vehicle, fence, or building that you damaged in an accident.

    What Do Liability Insurance Limits Represent?

    Person talking to doctor after car accident

    Your auto insurance policy is a combination of the different coverage types you purchase. Although many of these coverage types are optional, most states require you to carry a minimum amount of liability insurance, which is what we call your state’s minimum auto liability insurance limits.

    You will typically see these requirements written out as a set of three numbers, such as 30/60/15. The first number represents the amount of bodily injury coverage you have per person ($30,000). The second number represents the amount of bodily injury coverage you have per accident ($60,000). And the third number represents the amount of property damage liability coverage you have per accident ($15,000).

    Although your state may require you to carry a certain amount of liability insurance, you can always opt to purchase higher limits. Some states may have lower limits than others, which could leave you on the hook to cover injuries or damage if your limits fall short.  

    Does Auto Liability Insurance Cover Damage to Your Car?

    As mentioned, liability insurance protects you financially from any injuries or damage you are responsible for after an accident. However, it will not cover any damage or injuries you sustain from the accident, even if it wasn’t your fault.

    To repair or replace your car after a collision, you’ll need to have collision and comprehensive coverage. These coverages apply to your vehicle and can help cover repair or replacement costs—up to your policy’s limits—after a covered incident.

    Collision insurance will apply if your vehicle needs repairing after an accident with another vehicle or stationary object. Comprehensive insurance will apply if your vehicle is damaged in a non-collision event, such as theft, vandalism, or weather accidents. These coverages are usually sold together and come with a deductible. No state legally requires you to carry collision or comprehensive coverage, but your lender may require them if you are financing or leasing a car.

    Why Are California Auto Insurance Limits Increasing and Will I Have to Change My Policy?

    With such low state-required limits, drivers could find themselves lacking coverage if they are responsible for an accident and only carry the minimum limits. These new limits can potentially help drivers avoid financial ruin with additional protection. Although the new limits do not eliminate the risk entirely, they do help combat the rise in healthcare and vehicle repair costs over the past five decades.

    In most cases, you won’t need to take any additional steps. If you carry limits higher than the state minimums, your auto policy coverage will continue to reflect so. If you have a policy with the current low limits, your policy will renew at the new minimum limits on or after January 1, 2025, whenever your policy is up for renewal. All new policies purchased on or after January 1, 2025 will need to include these new liability limits at minimum.

    What If I’m Involved in an Accident with Someone Who Is Uninsured?  

    California Auto Insurance Limits

    According to the Insurance Information Institute, approximately 17% of California motorists are uninsured. If you’re involved in an accident with a driver without insurance and they are responsible for the crash, you could be left to pay for repairs and medical expenses out of pocket, depending on your policy.

    If your vehicle suffers major damage from the accident, you’ll need collision coverage to repair or replace your vehicle up to your policy’s limits. However, if you and your passengers require severe medical care, you’ll need uninsured motorists coverage (UM) to help cover expenses. Uninsured motorists coverage typically only applies when the at-fault driver does not have insurance or is underinsured. UMBI (uninsured motorist bodily injury) limits in California are also increasing to $30,000 per person and $60,000 per accident. Learn more about uninsured motorist coverage here

    AIS Can Help You Stay Covered

    As we prepare for 2025, it’s important to understand if the new law will affect your current California auto insurance policy. If you only meet the minimum requirements, comparing quotes now can potentially give you a head start and help you find the best rate available. According to the California Department of Insurance, premiums are expected to rise with the increase in liability auto insurance limits.

    If you still have questions about the new limits, our insurance specialists can help. At AIS, we’ve helped California residents find and secure reliable coverage for over 55 years. Call (888) 772-4247 or start a quote online today.


    The information in this article is obtained from various sources and offered for educational purposes only. Furthermore, it should not replace the advice of a qualified professional. The definitions, terms, and coverage in a given policy may be different than those suggested here. No warranty or appropriateness for a specific purpose is expressed or implied.