What happened
A state law, Senate Bill 1107 (passed in 2022), raised the minimum amount of liability insurance every California driver has to carry. It took effect January 1, 2025. Policies with the old limits moved up to the new ones at their first renewal after that date.
| What it pays | Before 2025 | Now | 2035 |
|---|---|---|---|
| Injury to one person | $15,000 | $30,000 | $50,000 |
| Injury to everyone, per accident | $30,000 | $60,000 | $100,000 |
| Damage to property, per accident | $5,000 | $15,000 | $25,000 |
The minimum for uninsured motorist coverage went up too.
What it means for you
Liability coverage pays for damage you cause to other people and their property. It doesn't fix your car or pay your medical bills.
Here's the part people miss. If a crash you cause costs more than your limits, you can be personally on the hook for the rest. Picture rear-ending a newer SUV and sending the driver to the hospital. $15,000 may not repair or replace a late-model vehicle, and hospital bills can pass $30,000 fast. Whatever your policy doesn't pay, the other driver can come after you for.
If you carried the bare minimum before 2025, your policy has already been upgraded, and your price probably went up at renewal. If you already carried higher limits, nothing changed for you.
Either way, the minimum is a legal floor, not a recommendation. It keeps you legal. It doesn't necessarily keep you protected.
What to do
- Find your limits. Your declarations page lists liability as three numbers, like "30/60/15" or "100/300/100."
- Price a few higher limits. Ask for quotes at two or three levels so you can see the real difference in cost.
- Think about what you'd stand to lose. Savings, home equity, and future wages can all be at risk in a lawsuit.
- Check your uninsured motorist coverage. It protects you when the other driver has no insurance or not enough.
- If cost is the problem, look at the state's low-cost program. California's Low Cost Auto Insurance Program offers basic coverage to income-qualified drivers. Details are at mylowcostauto.com.
Sources
- California Department of Insurance: New Year means new changes for insurance (2025)
- California Department of Insurance: Bulletin 2023-1, SB 1107 financial responsibility limits (Jan. 30, 2023)
- California Vehicle Code ยง16056 (current limits and the Jan. 1, 2035 increase)
- California Legislature: SB 1107 (Dodd, Chapter 717, Statutes of 2022)
- California Low Cost Auto Insurance Program
This article is general information about California insurance, checked against the sources above as of October 13, 2026. It isn't advice for your situation. Your policy documents and a licensed professional are the final word. Spot an error? Tell us and we'll correct it.
