Understanding California's new auto liability coverage law

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New California law requires an increase in the minimum limits of motor vehicle liability insurance coverage for any private passenger autos, commercial business or recreational vehicles. The law, Senate Bill 1107, goes into effect on January 1, 2025.

Will this impact my insurance policy?

The new law increases the minimum limits for coverages related to the liability portion of your auto insurance policy. This includes uninsured motor vehicle coverage. The new minimum liability limits will increase to 30,000/60,000/15,000* beginning January 1, 2025. All existing policies with lower limits will renew at the new minimum limits on or after January 1, 2025, as mandated by this new state law. If your coverages are increased to comply with the new minimum requirements, there could be an impact on your premium.

*What do the three numbers mean?

The numbers 30/60/15 represent the monetary limits of your liability coverage shown on your declarations page:

• The first number, 30 or $30,000, is the maximum coverage for bodily injury liability for one person injured in one accident.
• The second number, 60 or $60,000 is the maximum coverage for bodily injury liability for all persons injured in one accident.
• The third number, 15 or $15,000 is the maximum coverage for property damage liability in one accident.

Why is this happening now?

Implementing changes required by a new law can take months. While the law is going into effect now, the process to implement these changes was set in motion in 2022 after the law was passed.

What is the reason for this change?

The current limits have not been adjusted for more than 56 years. The change provides more protection for California drivers since services associated with these coverages, like medical and repair costs, have risen significantly in that time.

How will this work? Do I need to do anything?

No action is required. All existing policies with lower limits will renew at the new minimum limits on or after January 1, 2025, as mandated. However, it may be a good time to reach out to your State Farm agent to review all your coverages and review potential discounts.

When will this happen?

The new law goes into effect January 1, 2025. Customers who are impacted will see the change in their next policy renewal after that time.

Where can I learn more about auto insurance discounts?

See competitive California auto insurance discounts - State Farm.