Changes to Minimum Auto Insurance Liability Coverage Limits

In California, minimum auto insurance liability coverage limits will increase on January 1, 2025. 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. The new limits will be $30,000 for bodily injury or death to one person, $60,000 for bodily injury or death to more than one person, and $15,000 for property damage, according to the Department of Insurance (.gov). 

Even though the law officially became effective on January 1, 2025, it doesn't immediately impact all insured drivers. The new limits will apply when an existing auto insurance policy is renewed. Therefore, if your policy renewed before January 1, 2025, you will probably continue with the old 15/30/5 limits until your next renewal. At that point, your insurer must update your coverage to comply with the new 30/60/15 minimum unless you already have higher limits.

Here's a more detailed breakdown:

• Current Limits:

The previous minimums were $15,000 for bodily injury or death per person, $30,000 for bodily injury or death per accident, and $5,000 for property damage. On your policy or declarations page, this would show as 15/30/5 or $15,000/$30,000/$5,000.

• New Limits (Effective January 1, 2025):

The new limits are $30,000/$60,000/$15,000. 

• Reason for Change:

The increase is intended to address the rising costs of medical care, emergency services, and vehicle repairs related to car accidents, making sure victims have adequate financial support. 

• Impact on Drivers:

While these changes may lead to slightly higher insurance premiums, they provide better financial protection for drivers and accident victims according to Breathe Easy Insurance. 

• Future Adjustments:

The new limits will remain in effect until 2035, when they will increase again to $50,000/$100,000/$25,000. 

The new liability limits set for 2025 provide increased protection for drivers as they more accurately represent the current costs of accidents. California's current minimum liability limits are outdated, resulting in many drivers being underinsured in the event of a major accident. The Protect California Drivers Act aims to assist drivers who are underinsured and may face significant out-of-pocket costs not covered by existing insurance limits. With higher limits, your insurance is more likely to cover expenses such as medical bills and car repairs for others if you cause an accident. With greater coverage for California drivers, it becomes less likely that someone will pursue legal action against you for damages exceeding your coverage.

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