Last Updated on December 13, 2024 by The HD Post Staff
CALIFORNIA – A law doubling auto liability coverage limits in California will go into effect January 1, 2025.
Senate Bill 1107, signed into law in September 2022, increases the minimum liability insurance requirements for drivers.
Existing law requires a minimum of $15,000 for bodily injury or death to one person, $30,000 for bodily injury or death to more than one person, and $5,000 for property damage.
The new law taking effect in 2025 requires a minimum of $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 — triple the existing amount.
First adjustment in over 56 years
The adjustment is the first change to the state’s minimum liability limits in over 56 years.
In addition to the 2025 adjustments, increases are scheduled for 2035.
On January 1, 2035, the law will increase the minimum amounts of required liability insurance coverage by $20,000 for bodily injury or death of one person and $40,000 for bodily injury or death of more than one person in one accident.
Property damage would increase by another $10,000.
Insurer will automatically update policies Jan. 1
According to State Farm, the change provides more protection for California drivers since services associated with these coverages, like medical and repair costs, have risen significantly over the last 56 years.
State Farm customers with policies below the new minimum limits will see their policies automatically updated to meet the new requirements when they renew on or after January 1, 2025.
Other insurance companies are expected to follow a similar process, automatically adjusting existing policies to meet the new minimum requirements starting January 1, 2025. This means all California drivers, regardless of their insurer, will see their coverage limits updated to comply with the new law.
To read the full SB 1107 visit https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB1107
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