The Biggest Change in 50 Years: California’s New Insurance Minimums
For the first time since 1967, California has updated the minimum insurance limits that every driver is required to carry. As of January 1, 2025, Senate Bill 1107 has officially raised the “floor” for financial responsibility.
The old “15/30/5” limits have been replaced with the new 30/60/15 standard:
- $30,000 for bodily injury or death to one person (up from $15,000).
- $60,000 for bodily injury or death per accident (up from $30,000).
- $15,000 for property damage (up from $5,000).
These changes were made because medical and repair costs have skyrocketed over the last few decades, often leaving victims undercompensated. If your policy renewed after the start of 2025, your insurance company should have automatically adjusted your coverage to meet these new legal requirements.
What the 30/60/15 Limits Mean
California’s current minimum liability limits are commonly written as 30/60/15. The first number is the maximum bodily-injury coverage for one injured person, the second is the total bodily-injury limit when two or more people are injured in one accident, and the third is the property-damage limit. These are minimum amounts required for financial responsibility; they are not a promise that every loss from a serious collision will be fully covered.
Liability Coverage Does Not Protect Every Loss
Liability insurance generally pays covered claims made by other people when the insured driver is legally responsible. It does not replace collision coverage for damage to the policyholder’s own vehicle, comprehensive coverage for non-collision losses, or health coverage for the policyholder’s treatment. Drivers should review the declarations page rather than assuming the new minimum supplies every type of protection.
Why Higher Limits May Still Matter
A hospital visit, surgery, extended rehabilitation, or damage to several vehicles can exceed the statutory minimum. When multiple people are hurt, the per-accident bodily-injury limit must be divided among all covered claims. Choosing limits above the minimum can help protect personal assets and provide more available coverage when a policyholder causes a serious crash.
Review Uninsured and Underinsured Motorist Coverage
The at-fault driver’s higher minimum limits do not eliminate the risk of an uninsured driver or a loss that exceeds the available liability coverage. Uninsured and underinsured motorist coverage may protect an insured person for covered bodily injuries in those situations. The limits, exclusions, notice provisions, and written selections on the policy should be reviewed carefully.
What to Check on Your Policy
- The bodily-injury and property-damage liability limits.
- The uninsured and underinsured motorist limits and any written waiver or reduction.
- Medical payments, collision, comprehensive, rental, and gap coverage.
- Excluded drivers, listed vehicles, deductibles, and policy-effective dates.
After an Accident, Confirm the Actual Policy
Do not assume that the other driver carried the current minimum—or that the minimum is the only coverage available. The loss date, policy period, vehicle, driver, employer relationship, and any excess or rideshare coverage can affect the analysis. Preserve the insurance information exchanged at the scene, report the collision promptly, and request confirmation of the applicable limits through the proper claims process.
