Auto Insurance Requirements in California (2025 Update)
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May 7, 2025California's auto insurance laws have seen key updates in 2025 that every driver should know. Staying informed helps you avoid penalties and ensures you're financially protected on the road.
What’s Changing in California’s Auto Insurance Requirements in 2025?
California's auto insurance laws are undergoing major changes in 2025 after decades of staying the same.
- Previous limits (since 1967): $15,000 for injury or death to one person, $30,000 for multiple people, and $5,000 for property damage.
- Why the update? Medical bills and repair costs have skyrocketed, making old limits insufficient.
- Goal: Ensure accident victims receive fair compensation and reduce out-of-pocket expenses for drivers.
What Is the Protect California Drivers Act (Senate Bill 1107)?
This new law, passed in 2022, increases the minimum car insurance coverage required in California.
- Why it was created: To better protect people after accidents better and keep up with rising medical and repair costs.
- What it changes: Drivers now need more coverage than before, which hasn’t been updated since 1967.
- Who it helps: It helps accident victims get more financial support when damages or injuries happen.
- When it starts: The changes will roll out gradually, giving drivers and insurance companies time to adjust.
What Are the New Minimum Liability Coverage Requirements in 2025?
Starting January 1, 2025, California drivers must carry higher insurance limits to cover accident costs.
- $30,000 for injury or death to one person (was $15,000)
- $60,000 for injury or death to multiple people in one accident (was $30,000)
- $15,000 for property damage per accident (was $5,000)
What Are the 2035 Minimum Insurance Changes?
In 2035, California will raise the limits again to keep up with rising costs:
- $50,000 for injury or death per person
- $100,000 for injury or death per accident
- $25,000 for property damage per accident
How Will These Changes Affect Insurance Premiums?
Drivers can expect premiums to increase by $80 to $400 per year.
Final rates will depend on your driving history, car type, and insurance company.
What Is the California Low-Cost Auto (CLCA) Insurance Program?
CLCA offers affordable insurance for low-income drivers with reduced coverage limits:
- $10,000 for injury or death per person
- $20,000 for injury or death per accident
- $3,000 for property damage
To qualify, drivers must meet income limits and have a good driving record. You can apply through the California DMV or the Department of Insurance.
What Should California Drivers Do Now?
- Review your current auto insurance and adjust coverage if needed
- Talk to your insurance agent for tailored recommendations
- Apply for CLCA if you’re eligible. Keeping the right coverage helps you stay legal and financially protected.
Frequently Asked Questions
Conclusion
The 2025 updates mark a major shift in California's auto insurance landscape, increasing both legal obligations and financial safeguards for drivers.
To stay compliant and protected, review your coverage now—get a free quote through FE Insurance and secure the right policy for your needs.
