Get Ready for California’s 2025 Auto Insurance Changes

This legislation marks a significant shift in car insurance policy regulations across the state, affecting all vehicle owners. Starting January 1, 2025, California's Senate Bill, SB1107, will update California’s minimum auto insurance coverage requirements for the first time in over 50 years, impacting all car owners. This change will affect all drivers in the state and may cause some car insurance premiums to go up.

The new CA insurance minimums are designed to give everyone better protection in case of an accident. The new requirements mandate higher coverage levels, aligning California with modern car insurance standards. Here’s what you need to know about these changes to California’s auto insurance limits and why this is important for every driver.

What Are Minimum Insurance Limits?

Minimum insurance limits are the smallest amount of coverage drivers need to legally drive. Without meeting these minimum insurance requirements, drivers risk facing legal penalties. These limits help cover the costs of accidents, like medical expenses and car repairs, if you’re at fault. These costs include medical expenses and property damage, protecting your financial responsibility. Each state sets its own limits, and starting in 2025, California’s auto insurance limits will require more coverage.

Why Is California Changing Its Insurance Requirements?

California has some of the lowest insurance limits in the country, and they haven’t been updated in more than 50 years. Due to inflation and rising costs, the current minimum insurance limits don’t cover enough if you’re in an accident. The new insurance minimums in CA are meant to better protect drivers and injured accident victims.

How California’s New Insurance Requirements Benefit You

It might sound like bad news if your insurance premiums go up, but these changes will better protect you in the long run.

• More Protection: With higher insurance limits, drivers will have more coverage if they cause an accident. These new standards are aimed at providing adequate insurance coverage to prevent financial hardship. This means they’re less likely to pay out of pocket for expensive medical bills or repairs.
• Peace of Mind: Many drivers will now have better coverage, so you’re less likely to be stuck paying for someone else’s mistakes if they don’t have enough insurance to cover your damages.

With the new car insurance law, every driver on California roads will be required to carry more insurance, so if you're in an accident that’s someone else’s fault, there’s less chance you’ll be stuck paying out of pocket for someone else’s mistake or worrying about your financial security.

Will My Insurance Rates Go Up?

If you only have the minimum coverage right now, your rates will likely go up. However, keep in mind that California’s 2025 auto insurance requirements will affect all vehicle owners in CA with existing coverage below the 2025 levels, regardless of your insurance company. It is up to each insurance company to determine if, and how much, this required coverage change will drive rate increases for their customers. Car owners with more than the new minimum levels might not see much or any rate increase because of this law.

How Can I Handle These Changes?

Consider revisiting your insurance policy to understand how the new rules apply to your coverage plan. Here are a few tips to help you adjust:

Understand It Affects Everyone

Since this is a statewide change, all car insurance companies are impacted. It's crucial to stay informed of any updates from your car insurance company regarding these changes.

Consider Getting a Requote from Breathe Easy Insurance

If you are concerned about being able to afford potentially higher rates, regardless if you are a customer of Breathe Easy or another agency, we can help you compare quotes from DUI-friendly insurance companies. By exploring multiple providers, we’ll work with you to find the best policy now and ensure you have sufficient car insurance coverage at an affordable price in the future. By exploring multiple providers, we’ll work with you to find your best rate now and ensure you stay covered at a price that works for you in the future.

Review your Insurance Policy to see if it Meets the New Insurance Minimums in CA

Take a look at your policy to see if it meets the new insurance minimums in CA. Even if it does, it might be a good idea to add more coverage than the minimum to be better protected. Having the minimum coverage means you’re only getting minimum protection against something unexpected happening. Augmenting your policy with higher coverage amounts and collision coverage can also offer additional protection.

California’s 2025 Auto Insurance Limits

Beginning in 2025, California’s new minimum liability limits will be:

• $30,000 for injury or death to one person,
• $60,000 for injury or death to more than one person, and
• $15,000 for property damage.

This increase means you’ll have more coverage if you're at fault in an accident. While your premiums might go up, these increased insurance limits in CA will save you from bigger financial problems in the future. These adjustments help align California's policies with the economic realities drivers face regarding car insurance costs.

Vehicle Owners with Minimum Coverage Should be Aware that Their Rates may Increase in 2025

California customers with minimum coverage should be aware that their rates may increase in 2025. We work with several dependable SR-22 providers across California and can help you explore options to make your payments more manageable.