In This Article
Your premium will likely change at your next renewal
These new limits apply as policies come up for renewal throughout 2025 and 2026. If your current policy carries the old minimums, your insurer is required to update your coverage — which will affect your rate. Read on to understand what's happening and what to do.
What Changed on January 1, 2025
California Governor Gavin Newsom signed Senate Bill 1107 (SB 1107) into law, requiring all standard auto insurance policies in California to carry higher minimum liability coverage limits starting January 1, 2025. This is the first update to California's mandatory minimums since 1967 — more than 57 years ago.
| Coverage | Old Minimum (since 1967) | New Minimum (2025) |
|---|---|---|
| Bodily Injury per person | $15,000 | $30,000 +100% |
| Bodily Injury per accident | $30,000 | $60,000 +100% |
| Property Damage per accident | $5,000 | $15,000 +200% |
The new limits are commonly written as 30/60/15 — replacing the old 15/30/5 minimum. These changes apply to all standard auto policies (not the separate California Low Cost Auto program, which has its own limits).
Important: These limits kick in at your policy renewal — not all at once. Policies will be updated to the new minimums as they come up for renewal throughout 2025 and into 2026.
Why the Old Minimums Were Dangerously Low
The old $15,000 per-person bodily injury limit was set in 1967. To put that in perspective: a single emergency room visit after a serious accident can now cost $30,000–$80,000 or more. The average hospital stay costs over $10,000 per day. The old limits were effectively meaningless in a serious crash.
Here's what happens when you carry only minimum liability and cause a serious accident:
- Your insurance pays up to the policy limit
- If the other driver's bills exceed your limit, you are personally liable for the difference
- That means your savings, income, and assets can be targeted in a lawsuit
Even the new 30/60/15 minimums are still relatively low for a serious multi-vehicle accident or severe injury. We always recommend carrying 100/300/100 or higher if you have assets to protect — the difference in premium is often less than $10–20/month.
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How This Affects Your Premium
If you were already carrying more than the old minimums (which most responsible drivers were), your premium may not change much at all. The new 30/60/15 is the legal floor — not a significant coverage increase for someone already carrying 50/100/50 or higher.
However, if you were carrying only the bare minimum 15/30/5, you'll see two changes at renewal:
- Your coverage limits will automatically increase to meet the new 30/60/15 minimum
- Your premium will likely increase to reflect the higher coverage
On average, drivers who were at the old minimum can expect their premium to increase by $50–$150/year depending on their driving record, vehicle, location, and insurer. The exact amount varies significantly by carrier — another reason to shop around.
Check your current limits now
Log into your insurer's portal or call your agent to see exactly what limits you're carrying. It's on your declarations page (the front sheet of your policy).
Don't just accept the renewal increase
Your current insurer will raise your rate. But other carriers may offer the same or better coverage for less. Always shop before renewing.
Consider higher limits while you're shopping
The price difference between 30/60/15 and 100/300/100 is often surprisingly small. Ask us to quote both so you can see the actual cost difference.
Bundle to offset the increase
If you have home, renters, or life insurance with a different carrier, bundling can often offset the premium increase entirely.
The CLCA Program: For Income-Eligible Drivers
The California Low Cost Auto (CLCA) Insurance Program is a state-sponsored program designed for income-eligible drivers. Importantly, CLCA's limits are not being changed — they remain at the lower amounts the program was designed around:
- Up to $10,000 per person for bodily injury or death
- Up to $20,000 per accident for bodily injury or death
- Up to $3,000 for property damage
To qualify for CLCA, you must:
- Have a valid California driver's license
- Meet income eligibility guidelines
- Own a vehicle valued at $25,000 or less
- Be at least 16 years old (under 18 must be legally emancipated)
- Have a good driving record or be a new driver
If the new minimums create an affordability challenge, CLCA is worth exploring. Learn more at mylowcostauto.com or call 866-602-8861.
When Are Minimums Increasing Again?
SB 1107 included a second scheduled increase. On January 1, 2035, California's minimums will rise again to:
| Coverage | 2025 Minimum (current) | 2035 Minimum (upcoming) |
|---|---|---|
| Bodily Injury per person | $30,000 | $50,000 |
| Bodily Injury per accident | $60,000 | $100,000 |
| Property Damage per accident | $15,000 | $25,000 |
If you're planning ahead, carrying 50/100/25 today means you'll already meet the 2035 minimums and won't need to adjust again for a decade.
What You Should Do Before Your Next Renewal
Here's a simple action plan:
- Pull out your declarations page — confirm what limits you currently carry
- Note your renewal date — this is when the new minimums will apply to your policy
- Get a competitive quote 30–45 days before renewal — switching is easiest at that window and gives you time to compare
- Ask about increasing your limits — see the actual cost difference between 30/60/15 and higher coverage tiers
- Consider bundling — if you have home, renters, or life insurance elsewhere, combining them can offset any premium increase
Let CoverGuard do the comparison for you.
We'll compare 20+ carriers, explain your options in plain English, and find you the best rate for the coverage you actually need.
Questions? Talk to a Local Agent
CoverGuard is an independent insurance brokerage based in Whittier, CA. We're licensed across California and serve clients throughout Los Angeles County and the entire state. We're not tied to any single carrier — which means we always find you the best rate, not the most profitable one for us.
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