California Drivers Will Need Higher Liability Limits In 2025

California Passed Senate Bill 1107 Requiring Higher Minimum Liability Limits To Protect Drivers In The Event of  Car Accidents

ORANGE COUNTY, CALIFORNIA (November 18, 2024) – California has passed Senate Bill 1107, otherwise known as the Protect California Drivers Act, which will raise minimum liability requirements.

The bill was signed into law by Governor Gavin Newsom and is set to take effect on January 1, 2025. It is the first time in over 50 years that the state has increased liability limits, even as medical care and vehicle repair costs have continued to rise.

Understanding Vehicle Liability Limits

Liability insurance helps to cover the cost of injuries and property damage for drivers that cause accidents. Liability limits are typically the highest amount that an insurance company will agree to pay in the event of a collision.

Drivers may choose to purchase insurance policies that cover state-mandated minimums. Or drivers may choose to purchase insurance policies with higher limits for more protection.

New Limits Required By The Protect California Drivers Act

As of November 18, 2024, the current state-mandated minimum insurance amounts are $15,000 per person, $30,000 per accident, and $5,000 for property damage. As of January 1, 2025, these minimum amounts will increase to $30,000 per person, $60,000 per accident, and $15,000 for property damage.

How The Protect California Drivers Act Impacts Drivers

The new liability limits set to go into effect in 2025 offer more protection for drivers in the event they are involved in a collision. Proponents of the new law argue that the state’s existing minimum liability limits are outdated and fail to protect drivers following a serious accident.

There are a number of situations in the past where California drivers were underinsured and faced high out-of-pocket expenses following accidents. The law is meant to help those drivers and make it more likely that insurance providers will cover medical bills and car repairs.

Cost Impact on Consumers

There is a growing concern that passage of the new law will sharply impact the cost drivers must pay for their auto insurance, even as costs have already been ballooning. According to KTVU, “In June 2023, the average annual cost for full coverage was $1,666. A year later, the average spiked to $2,417, according to Insurify.” GEICO has since closed its California offices, and Progressive has stopped advertising in the state.

What Drivers Need to Do After Passage of the New Law

Drivers will not need to take any action in order to comply with the new law. All existing policies with limits lower than the state-mandated minimums will be updated on or after January 1, 2025. Drivers should contact their insurance broker for how the law may impact their specific policy.

Getting Help After A Car Accident 

Navigating insurance policies after a car accident can be a daunting task, even with the new policy limits set to go into effect in 2025. If you or someone that you love has been injured in a car accident, it is best to seek the legal advice of a skilled car accident attorney. Our legal team at Samer Habbas & Associates can examine the unique facts of your case and let you know what your rights are. Whether you just have legal questions or are thinking about hiring an attorney, we can help. You can reach out to us anytime at 949-727-9300.