New year, new me—right? Well, for California, North Carolina, Utah, and Virginia residents, this year it’s more like new year, new auto liability insurance requirements. That’s because these four states are all updating their laws to have higher new minimum auto insurance requirements. But what does that mean for drivers? And why are these changes happening? To help you understand the changes in 2025, we compiled this guide highlighting what you need to know.
But before we get into the changes, let’s quickly recap liability insurance and what it covers.
Key Takeaways:
- California increased their minimum car insurance requirements from 15/30/5 to 30/60/15 on January 1, 2025.
- North Carolina increased their minimum car insurance requirements from 30/60/25 to 50/100/50.
- Utah increased their minimum car insurance requirements from 25/65/15 to 30/65/25 on January 1, 2025.
- Virginia increased their minimum car insurance requirements from 30/60/20 to 50/100/25 on January 1, 2025.
What is Auto Liability Insurance and What Does it Cover?
Nearly every state requires all motorists to carry a minimum amount of auto liability insurance. Although the minimum limits can vary depending on where you live, these limits are meant to provide a financial cushion if you are found responsible for causing injury to another person or damage to their property. Unlike other optional insurance coverages, however, liability insurance does not cover damage to your car following an accident. You’ll need collision or comprehensive coverage to repair or replace your car after an accident.
Liability insurance is made up of two coverage types:
- Bodily injury liability insurance (BI): covers the cost of medical care, lost wages, legal fees, and funeral costs (up to your policy’s limits) if you injure someone in an accident.
- Property damage liability insurance (PD): covers the cost to repair another person’s property, such as a vehicle or structure that you damage in an accident, up to your policy’s limits.
Auto liability limits are typically written as three numbers, such as 30/60/15. The first number in the sequence represents the amount of bodily injury coverage you have per person ($30,000), the second number is the amount of bodily injury coverage you have per accident ($60,000), and the third number is the total number of property damage coverage that you have per accident ($15,000).
What Are the New Minimum Auto Insurance Requirements in California?
Old minimum auto liability insurance limits: 15/30/5
New minimum auto liability insurance limits: 30/60/15
On January 1, 2025, Senate Bill 1107 went into effect and increased the minimum liability insurance drivers in California must carry for the first time since 1967. The change, mandated by the Protect California Drivers Act, was passed to help provide better protection for drivers after an accident since the state used to be home to some of the lowest limits in the country. Under SB 1107, California increased its minimum auto insurance requirements from 15/30/5 to the following:
- $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
After ten years, California’s limits will increase again to 50/100/25 in 2035.
Although uninsured/underinsured motorist coverage (UM/UIM) is optional in California, the new minimum liability limits will also affect UM/UIM limits. If you choose to purchase this coverage, you must carry minimum UMBI limits of $30,000 per person and $60,000 per accident.
What Are the New Minimum Auto Insurance Requirements in North Carolina?
Old minimum auto liability insurance limits: 30/60/25
New minimum auto liability insurance limits: 50/100/50
Motorists in North Carolina can also expect to see increased limits as we progress into 2025. With Senate Bill 452, North Carolina raised its liability limits to have some of the highest property damage requirements in the country. With this new law, North Carolina has increased its minimum car insurance liability limits from 30/60/25 to:
- $50,000 for bodily injury or death per person
- $100,000 for bodily injury or death per accident
- $50,000 for property damage per accident
Like California, North Carolina will also increase its minimum UM/UIM limits to match the new auto liability limits.
What Are the New Minimum Auto Insurance Requirements in Utah?
Old minimum auto liability insurance limits: 25/65/15
New minimum auto liability insurance limits: 30/65/25
In 2023, Utah Governor Spencer Cox signed HB113, which introduced new auto liability insurance limits to the state beginning on January 1, 2025. Although the state now has new minimum requirements, the change is much less drastic than other states on our list.
Under the new law, Utah has increased its minimum car insurance liability limits from 25/65/15 to:
- $30,000 for bodily injury or death per person
- $65,000 for bodily injury or death per accident
- $25,000 for property damage per accident
UM/UIM is not required in Utah. However, if you choose to purchase the optional coverage, you must carry minimum limits of $30,000 per person and $65,000 per accident.
What Are the New Minimum Auto Insurance Requirements in Virginia?
Old minimum auto liability insurance limits: 30/60/20
New minimum auto liability insurance limits: 50/100/25
Auto insurance has changed drastically over the past few years for drivers in Virginia. For one, in July of 2024, Virginia repealed its law that allowed motorists to pay a $500 fee to drive an uninsured vehicle. And now that we have entered 2025, those required limits have increased. Under SB112, Virginia has increased its minimum auto liability insurance limits from 30/60/20 to:
- $50,000 for bodily injury or death per person
- $100,000 for bodily injury or death per accident
- $25,000 for property damage per accident
If you choose to purchase UM/UIM coverage in Virginia, you must purchase minimum limits that reflect the new liability insurance limits.
Why Are State Minimum Auto Insurance Requirements Increasing?
Insurance is regulated at the state level, which is why some states have higher minimum car insurance requirements than others. Although each state has an insurance department that oversees the state’s requirements, making legislative changes can be a time-consuming process. In recent years, we’ve seen the cost of auto repairs and medical care rise while minimums have remained the same in many places. These states have voted to increase minimum limits to help drivers avoid significant financial burden following an accident.
It’s important to remember that minimum limits may not cover all costs after an accident. However, increasing the minimum amount drivers must purchase helps to bridge the gap between coverage amounts and repair/healthcare costs. You can always purchase liability limits that exceed your state’s minimum auto insurance requirements.
Do I Have to Adjust My Policy to Meet the New Minimum Limits?
In most cases, there’s not much you need to do to be in compliance with these limits. Since most of these changes went into effect on January 1, 2025, any policy with their state’s old minimum auto insurance limits will simply be renewed with the new limits. If you carry limits that surpass your state’s requirements, your policy will continue to reflect those same limits. Any new policy purchased in 2025 will automatically begin with each state’s new minimum liability requirements.
AIS Can Help You Prepare
If you only carry what is minimally required, it’s likely that your premium will slightly increase when your policy renews with the new limits, no matter where you live. If you are facing an insurance increase, one of the best ways to ensure you find the best deal is to compare auto insurance quotes from multiple providers.
At AIS, we have over 55 years of experience helping our customers find and secure reliable insurance policies from our network of trusted insurance partners. Whether you’re looking to upgrade your coverage or simply want help finding the best rate, our specialists can help. Give us a call at (888) 772-4247, or start a quote online to get started 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.