With Senate Bill 1107 coming into effect January 1, 2025, California drivers are now required to meet higher minimum liability limits for their auto insurance policies. This law affects commercial vehicles, passenger vehicles, and recreational vehicles and is meant to increase financial protection for the victims of accidents as well as drivers. Since the current minimum limits haven’t changed for more than 56 years - despite medical and vehicle repair costs rising exponentially - the state is adjusting these limits to offer better financial protection for drivers and help to cover more of the costs incurred by accidents. The minimum liability limit under this new law has been increased to 30/60/15. Here’s what these numbers mean:

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

How This Affects Your Insurance Policy

As this law comes into effect, any existing auto insurance policies with liability limits below the new minimums are going to automatically adjust to meet the new requirements upon renewal. While coverage goes up, so may your premiums. If you have any concerns regarding the way it may impact your budget, now is a great time to review your policy with your insurance agent, who can assist with exploring potential discounts and pinpointing strategies to optimize your coverage. 

Why Did They Implement This Law?

• Increased protection: With higher insurance limits for everybody, drivers will know they have more coverage if an accident occurs. These updated standards are geared to offer adequate insurance coverage for drivers and accident victims alike so that an accident doesn’t cause undue financial hardship. This means that drivers are now not as likely to be forced to pay out of pocket for expensive repairs or medical bills
• Peace of mind: Better coverage for everyone means you can have peace of mind about having to pay for the mistakes of another party if they don’t have enough insurance to cover the damages that were incurred.

What Should I Do Now?

Fortunately, you don’t have to do anything at the moment in order to comply with the new law, as any necessary changes will automatically take place as policies renew. However, proactive drivers can take the following steps to ensure their needs are being met:



• Reviewing their coverage: Ensuring that their policy aligns with their risk tolerance and financial needs
• Reviewing their premiums: There may be potential premium adjustments if your coverage increases
• Asking their agent about any potential discounts: Check with your agent about discounts for bundling policies, safe drivings, or installing anti-theft devices

Contact Us Today If You Have Any Questions

The new law took effect on January 1, 2025, so if your policy renews after this date, your coverage may be updated to reflect the new minimum liability limits. If you are currently in the middle of an auto insurance dispute, or was recently  involved in a car accident and have any questions regarding how this could impact you, don’t hesitate to reach out and ask us for help. Navigating auto insurance law can be a tricky process, particularly when there are multiple parties involved. Call the Law Office of Ball & Yorke to schedule a free initial consultation with an experienced California auto accident attorney today.