California Minimum Car Insurance (2025): Legal Requirements & Risks
California Minimum Car Insurance (2025): Legal Requirements & Risks
Starting January 1, 2025, California drivers must carry minimum liability auto insurance of $30,000 per person / $60,000 per accident / $15,000 property damage. These increases reflect the rising costs of medical care and vehicle repair.
Required liability limits in California
Under Senate Bill 1107, effective January 1, 2025 for private-passenger vehicles, the minimum liability insurance limits are:
- $30,000 bodily injury or death per person injured in one accident.
- $60,000 bodily injury or death total per accident.
- $15,000 property damage liability per accident.
For comparison, the previous minimums (before 2025) were $15,000 / $30,000 / $5,000, which many consumer advocates deemed too low given today’s costs.
What minimum coverage typically excludes
Meeting the state minimum means you’re legally compliant — but there are notable gaps in what is not covered:
- Your own vehicle’s repair or replacement: minimum liability does not include collision or comprehensive coverage.
- Your own medical expenses if you’re injured: liability covers the other party’s losses, not yours.
- If the damages you cause exceed the $30K/$60K/$15K limits, you may be personally responsible for the excess.
- Optional coverages like uninsured/underinsured motorist (UM/UIM), rental reimbursement, and gap coverage are not required but worth considering.
Additional coverages (UM/UIM, collision) worth considering
Because accidents often result in costs far above the minimum limits, many drivers elect to purchase higher or broader coverages:
- UM/UIM Bodily Injury: California requires insurers to offer this coverage (you may reject it).
- Collision & Comprehensive: Covers your vehicle if you’re at fault or for non-collision damage (theft, wildfire, vandalism); usually required by lenders.
- Higher liability limits: If you have significant assets, consider limits like 100/300/100 or adding an umbrella policy.
Cost implications of higher limits
- Premiums generally rise with higher limits; law changes can also shift rates as insurers adjust.
- Driving without appropriate coverage can lead to suspended registration, fines, or impoundment under DMV rules.
- If you’re at fault with damages exceeding your limits, you may be personally liable for the excess (e.g., $100,000 damage vs. $15,000 property limit leaves $85,000 exposure).
Key Takeaways
- As of 2025, minimum California liability limits are $30K/$60K/$15K (per person / per accident / property damage).
- Minimum liability ensures legal compliance but does not protect your vehicle or your own injuries — consider higher limits and additional coverages.
- Confirm your renewal reflects the higher limits and consider raising coverage if you have significant assets or a newer vehicle.
References
Frequently Asked Questions
Are uninsured motorist (UM) coverage required?
Not always — insurers must offer UM/UIM coverage with minimum limits of 30/60 (bodily injury) but you may reject it.
What happens if I only carry minimum and I’m in a crash?
You may face large out-of-pocket costs if damages exceed your limits, and you could also have your vehicle’s registration suspended for non-compliance.
Can I increase my coverage mid-policy?
Yes — you can contact your insurer or agent to raise your limits, add coverages or switch to full coverage at any time (subject to underwriting and billing).
Does minimum liability cover my vehicle?
No — minimum liability covers only damage & injuries you cause to others. It does not cover your vehicle’s damage or your own injuries. You need collision/comprehensive for that.
When do the new minimum limits take effect?
The new minimum limits (30/60/15) take effect on January 1, 2025. Your policy renewal on or after that date must meet the new limits.
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