California drivers are required to carry automobile liability insurance to help cover injuries and property damage they may cause in an accident. However, for decades, California’s minimum insurance requirements remained unchanged, even as medical expenses, vehicle repair costs, and other accident-related expenses continued to rise.

To address this issue, California lawmakers passed Senate Bill 1107 (SB 1107), commonly known as the Protect California Drivers Act, in 2022. The legislation increased the state’s minimum automobile liability insurance requirements for the first time in more than 50 years.

The first set of increases took effect on January 1, 2025, with another increase scheduled for 2035. Understanding these changes is important for California motorists, particularly when determining whether their existing insurance coverage provides enough financial protection following a serious accident.

Quick Highlights

• SB 1107 increased California’s minimum auto liability insurance requirements to provide greater financial protection following vehicle accidents.

• The first increase took effect January 1, 2025, raising minimum bodily injury coverage to $30,000 per person and $60,000 per accident, with $15,000 for property damage.

• Additional increases are scheduled for January 1, 2035, bringing minimum liability limits to $50,000 per person, $100,000 per accident, and $25,000 for property damage.

• The law does not guarantee full compensation after an accident. Serious injuries and extensive property damage can still exceed the required minimum coverage.

• California drivers should regularly review their insurance policies and consider whether additional liability coverage or uninsured/underinsured motorist protection makes sense for their circumstances.

What Is Senate Bill 1107?

Senate Bill 1107 is a California law designed to modernize the state’s automobile liability insurance requirements. Signed into law in 2022, the legislation increases the minimum amount of liability insurance motorists must carry to satisfy California’s financial responsibility requirements.

Before the legislation took effect, California’s minimum automobile liability insurance limits had remained at the same levels since 1967.

Those limits were:

• $15,000 for bodily injury or death to one person.

• $30,000 for bodily injury or death to multiple people in a single accident.

• $5,000 for property damage resulting from an accident.

While these amounts may have provided more meaningful protection decades ago, they became increasingly inadequate as healthcare costs, vehicle prices, and accident-related expenses increased.

The Protect California Drivers Act seeks to reduce this gap by requiring higher minimum coverage amounts, helping accident victims access more insurance compensation when an insured driver is legally responsible for their injuries or losses.

How Did SB 1107 Change California’s Minimum Auto Insurance Requirements?

The most significant change introduced by SB 1107 is the increase in California’s minimum automobile liability coverage limits.

California minimum automobile liability insurance limits

Source: California Department of Insurance and California Vehicle Code § 16451.

These coverage limits are commonly expressed as 30/60/15 for policies subject to the 2025 requirements. Starting January 1, 2035, the limits are scheduled to increase to 50/100/25.

Understanding What These Coverage Limits Mean

The three numbers represent different categories of liability protection.

Bodily Injury Liability Per Person: This is the maximum amount an insurance policy will pay for bodily injury or death involving a single person in a covered accident, subject to the policy’s terms and applicable liability.

Bodily Injury Liability Per Accident: This is the total amount the policy will pay for bodily injuries or deaths involving multiple people in a single covered accident, regardless of how many individuals were injured. The per-person limit still applies.

Property Damage Liability: This coverage helps pay for damage an insured driver causes to someone else’s property, including another vehicle, fences, buildings, or other structures.

For example, under California’s current 30/60/15 minimum requirements, an at-fault driver’s insurance policy may provide up to $30,000 for injuries sustained by one person. If three people are injured in the same accident, the policy generally provides no more than $60,000 combined for their bodily injury claims, subject to the $30,000 individual limit.

These amounts represent minimum required coverage limits, not guaranteed payments to accident victims.

Why Was the Protect California Drivers Act Passed?

The primary goal of SB 1107 was to update outdated insurance requirements and improve financial protection for California motorists and accident victims.

Several factors contributed to the need for this legislation.

Rising Medical Costs

Accident-related medical expenses can accumulate quickly, particularly when injuries require emergency transportation, hospitalization, surgery, rehabilitation, or ongoing medical care.

For someone suffering a traumatic brain injury, spinal cord injury, or multiple fractures, medical expenses alone can significantly exceed the previous $15,000 bodily injury liability minimum.

By increasing the required coverage, SB 1107 makes more insurance funds potentially available when someone is injured by a negligent driver.

Increasing Vehicle Repair and Replacement Costs

Modern vehicles are equipped with sophisticated safety technology, sensors, cameras, and electronic components. Although these features can improve driver safety, they can also make collision repairs more expensive.

Under the previous requirements, California drivers needed only $5,000 in property damage liability insurance. That amount could be exhausted by relatively modest damage to a newer vehicle.

SB 1107 tripled the minimum property damage liability requirement to $15,000 in 2025, with another increase to $25,000 scheduled for 2035.

Greater Financial Protection for Accident Victims

When an at-fault driver carries only minimum liability insurance, an injured person may have difficulty recovering the full cost of their injuries and other losses.

Higher minimum insurance limits can provide access to additional compensation for medical expenses, lost income, property damage, and other legally recoverable damages.

However, increasing the insurance minimums does not eliminate the possibility that accident victims will face expenses beyond the available coverage.

Does SB 1107 Affect All California Drivers?

SB 1107 affects California motorists who must meet the state’s financial responsibility requirements, including those purchasing or renewing standard automobile liability insurance policies.

For drivers who previously carried only the old minimum coverage limits, insurance companies generally adjusted their policies to meet the higher requirements when those policies were issued or renewed on or after January 1, 2025.

Drivers who already carried liability limits exceeding the new minimums may not have needed to make any changes.

It’s also important to understand that SB 1107 does not require motorists to purchase comprehensive or collision coverage. Those forms of insurance protect against different types of vehicle damage and are separate from the liability coverage addressed by the law.

Drivers should consult their insurance providers to understand how the legislation affects their individual policies.

Are California’s New Minimum Insurance Limits Enough After a Serious Accident?

Although SB 1107 represents a significant improvement over California’s previous requirements, the new minimum limits may still be insufficient to cover the full financial consequences of a serious automobile accident.

Consider a scenario in which a driver causes an accident that leaves another motorist with substantial injuries. The injured motorist incurs:

• $45,000 in emergency medical treatment and hospitalization.

• $20,000 in follow-up medical care and rehabilitation.

• $15,000 in lost wages while recovering.

In this hypothetical situation, the injured driver has already suffered $80,000 in economic losses, without accounting for pain and suffering, future medical expenses, or other potential damages.

If the at-fault driver carries only California’s minimum $30,000 bodily injury liability coverage per person, there may be a substantial gap between the available liability insurance and the injured person’s actual losses.

The injured person may need to investigate other possible sources of compensation, including additional applicable insurance policies, underinsured motorist coverage, or assets belonging to legally responsible parties.

However, the ability to recover additional compensation depends on the circumstances of the accident, the available insurance coverage, and applicable California law.

How Does SB 1107 Affect Uninsured and Underinsured Motorist Coverage?

One important consideration for California motorists is how the legislation relates to uninsured and underinsured motorist coverage.

Uninsured motorist (UM) coverage can provide protection when someone is injured in an accident caused by a driver who does not have applicable liability insurance.

Underinsured motorist (UIM) coverage can provide additional protection when an at-fault driver’s liability insurance is insufficient to cover an injured person’s damages, subject to policy limits and California’s rules governing underinsured motorist claims.

Although California insurers generally must offer uninsured and underinsured motorist coverage, policyholders may reject that coverage in writing. SB 1107 does not eliminate the importance of evaluating these protections.

For drivers concerned about the financial consequences of a serious collision, purchasing higher UM/UIM coverage limits may offer valuable additional protection.

Will SB 1107 Increase Auto Insurance Premiums?

For some California drivers, the higher required coverage limits may result in increased automobile insurance premiums.

Insurance companies consider several factors when determining premiums, including driving history, location, vehicle characteristics, annual mileage, and the coverage purchased.

Because SB 1107 requires insurers to provide higher minimum liability limits, drivers previously carrying only the lowest available coverage may see higher premiums as a result.

However, the impact varies depending on the driver, insurer, and policy. The law does not establish a universal premium increase.

California motorists can compare quotes from different insurance providers and review their coverage options to find a balance between affordability and adequate financial protection.

What Should California Drivers Do to Protect Themselves?

While SB 1107 establishes higher minimum insurance requirements, motorists should remember that the legal minimum is not necessarily the amount of coverage they actually need.

Drivers can take several steps to improve their financial protection.

Review Existing Liability Insurance Limits: Check your current policy to understand how much bodily injury and property damage liability coverage you carry.

Consider Higher Coverage Limits: Increasing liability coverage above California’s minimum requirements may provide additional financial protection if you cause an accident involving serious injuries or extensive property damage.

Evaluate Uninsured and Underinsured Motorist Coverage: Consider whether your policy provides sufficient protection if you are injured by a driver with little or no applicable liability insurance.

Understand What Your Policy Does Not Cover: Liability coverage generally protects against claims made by others for covered injuries or property damage you cause. It does not automatically pay for your own injuries or damage to your vehicle.

Review Your Policy Regularly: Major life changes, purchasing a new vehicle, or changes in your financial circumstances may affect the amount of insurance coverage that makes sense for you.

Understanding California’s Changing Auto Insurance Requirements

California’s Senate Bill 1107 represents an important update to the state’s automobile insurance laws. By increasing minimum liability coverage requirements for the first time in decades, the Protect California Drivers Act aims to provide greater financial protection for motorists and individuals injured in traffic accidents.

However, while the higher requirements are a step forward, they do not guarantee that every accident victim will receive enough compensation to cover their losses.

For California drivers, the key takeaway is simple: Meeting the state’s minimum insurance requirements is an important legal obligation, but carrying adequate coverage can be just as important for protecting yourself financially.

Understanding your insurance policy, reviewing coverage limits, and making informed decisions about additional protection can help prepare you for the unexpected.