California Car Insurance: Liability Limits Increase 2025

The last time liability limits in California increased was in 1967, even though it is by far the state with the most drivers and lowest minimum requirements on car insurance. Starting January 1, all car insurance policies will see a rate hike due to a new California liability limits increase to 30/60/15.

If you’re a California resident, you know that car insurance is already expensive, but the good news is that the new limits will hardly impact your wallet and you’ll be better protected if you cause an accident. Prior years’ liability limits were out of touch with how expensive car replacement, car parts and skilled labor have become ever since inflation hit a high. Medical costs are also at an all-time high and will not be decreasing. Here are the specifics in limit changes.

On This Page

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  California Laws Pertaining to Liability Limits Increase in 2025

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  What Is Liability Insurance?

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  Liability Coverage Does Not Cover At-fault Accidents

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  How To Lower Car Insurance Costs After an Increase

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  California Car Insurance Limits FAQs

California Laws Pertaining to Liability Limits Increase in 2025

Bill 1107, also called the Protect California Drivers Act was signed by Governor Newsom in 2022. The bill allowed insurers to raise minimum auto insurance requirements and was set to begin January 1, 2025.

If you’ve seen an incremental increase in car insurance in January, now you know why. Formerly, liability limits were 15/3/5 and increased in 2025 to 30/60/15:

• $30,000 bodily injury or death per person
• $60,000 bodily injury or death per accident
• $15,000 property damage per accident
• Or, in lieu of coverage: $75,000 cash deposit with the DMV as proof of minimum financial responsibility (formerly $35,000).

If you thought that would be the end of it, 2035 will increase liability car insurance minimum requirements to 50/100/25.

What Is Liability Insurance?

Bodily Injury Liability Coverage for the At-fault Driver

In the event of an accident, if you cause injuries or death you’re covered up to $30,000 per person, $60,000 total per accident now for bodily injury. These figures are more in line with current medical costs.

Bodily injury liability insurance covers:

• Hospital, doctor visits and rehabilitation costs related to physical injuries.
• Pain and suffering.
• Income loss due to injuries

Property Damage Liability Coverage for the At-fault Driver

In an accident, if you cause physical damage to the other car or cars, you’re covered up to $15,000 per accident. This figure includes

• Cost to repair the other vehicle(s)
• Cost to repair other damaged property, like a mailbox or utility pole or other structure.
• Cost to remove debris from the accident

Liability Coverage Does Not Cover At-fault Accidents

If you’re determined to have caused an accident, your liability coverage will not cover you, only the damages and injuries you caused.

You will not get a claim payout from your insurance company if you’re the person at fault, unless you have collision coverage.

You will not get a claim payout if your car is vandalized or stolen unless you have comprehensive coverage.

Collision and comprehensive often are purchased together and, when bundled, are called full coverage.

It only makes sense to have these coverages if your car is worth $4,000 or more. You can lower your monthly premiums on these add-on coverages by increasing your deductible, which is always deducted from a claim payout.

How To Lower Car Insurance Costs After an Increase

Compare car insurance quotes for the fastest, easiest way to find out which insurance company will give you the lowest price. Each company prioritizes some factors over others, such as driving history, age, miles driven per year and more.

If you’re not likely to switch carriers, call and ask about the discounts they offer. See if you qualify.