On September 2022, Governor Newsom signed SB1107 (the Protect California Drivers Act) into law, increasing California's minimum automobile liability coverage. Before the increase, California's minimum auto liability coverages were 46th in the nation; they hadn't seen an increase since 1967, when the original calculations were completed.
California Liability Insurance: Is it Mandatory?
California State legislators passed minimum financial responsibility laws in 1974 requiring drivers to carry liability coverages in their automobile insurance policies at the following minimums: $15,000/$30,000/$5,000 for physical injury or death for one person/two or more people/property damage. Minimum financial responsibility laws make drivers responsible for compensating injured drivers and passengers in an accident.
When Do Increased Limits Go Into Effect & What Will They Do?
The increased California minimum automobile liability coverages go into effect on January 1, 2025. The increased coverage could affect injured parties' compensation after a car accident. If a negligent driver caused injuries to another party, the injured party could seek damages up to the maximum covered by the negligent driver's insurance policy. Raising minimum insurance coverage requirements can significantly impact a victim's compensation for injuries suffered in a car accident.
California is Proactive Toward Protective Coverages:
The increased minimum auto insurance policy limits for California drivers ensure car accident victims aren't stuck with debt when dealing with and recovering from injuries after car accidents with negligent drivers. The Protect California Drivers Act (SB1107) is also designed to protect against damage from accidents involving uninsured or underinsured drivers. Since 1974, the costs of medical care and damaged vehicle repair have increased significantly, but California's minimum auto liability coverage requirements stayed static. The increased costs, along with economic inflation, create a problematic gap between the coverage needed and the coverage actually required by law.
Increased Auto Insurance Policy Minimums Coming in 2025:
SB1107, or the Protect California Drivers Act, amends California Vehicle Code 16056, effective January 1, 2025. At that time, the minimum liability coverage required for California drivers will increase to $30,000/$60,000/$15,000 for physical injury or death for one person/two or more people/property damage. The increased limit will be in effect from January 1, 2025 through January 1, 2035 when the mandatory minimum auto liability coverage increases again to: $50,000/$100,000/$25,000 for physical injury or death for one person/two or more people/property damage.
If you are injured and need to file a California car accident claim, contact Moss Bollinger, Sherman Oaks, California personal injury attorney. He's dedicated to protecting and asserting the rights of his clients. Call 866-942-7974 today for a free consultation, or contact us online.