Get Ready for California’s 2025 Auto Insurance Changes

Starting January 1, 2025, California’s Senate Bill, SB1107, will update its minimum auto insurance coverage requirements for the first time in over 50 years. This change will affect all drivers in the state and may cause some drivers’ rates to go up. The new California insurance minimums are designed to give everyone better protection in case of an accident. Here’s what you need to know about these changes to California’s auto insurance limits and why this is important for you.

What Are Minimum Insurance Limits?

Minimum insurance limits are the smallest amount of coverage drivers need to legally drive. These limits help cover the cost of accidents, like medical bills and car repairs, if you’re at fault. Each state sets its own limits, and starting in 2025, California’s auto insurance limits will require more coverage.

Why Is California Changing Its Insurance Requirements?

California has some of the lowest insurance limits in the country, and they haven’t been updated in more than 50 years. Due to inflation and rising costs, the current minimum insurance limits don’t cover enough if you’re in an accident. The new insurance minimums in California are meant to better protect drivers and accident victims.

How California’s New Insurance Requirements Benefit You

It might sound like bad news if your insurance rates go up, but these changes will protect you better in the long run.

• More Protection: With higher insurance limits, drivers will have more coverage if they cause an accident. This means they’re less likely to pay out of pocket for expensive medical bills or repairs.
• Peace of Mind: Many drivers will now have better coverage, so you’re less likely to be stuck paying for someone else’s mistakes if they don’t have enough insurance to cover your damages.

With the new law, every driver on California roads will be required to carry more insurance, so if you're in an accident that’s someone else’s fault, there’s less chance you’ll be stuck paying out of pocket for someone else’s mistake or worrying about your financial security.

Will My Insurance Rates Go Up?

If you only have the minimum coverage right now, your rates will likely go up. However, keep in mind that California’s 2025 auto insurance requirements will affect all drivers in California with existing coverage below the 2025 levels, regardless of your insurance company. It is up to each insurance company to determine if, and how much, this required coverage change will drive rate increases for their customers. Drivers with more than the new minimum levels might not see much or any rate increase because of this law.

How Can I Handle These Changes?

Here are a few tips to help you adjust:

Understand It Affects Everyone

Every legal driver in California will have to meet the new insurance minimums in California. Since this is a statewide change, all insurance companies are impacted.

Consider Getting a Requote from Breathe Easy Insurance

If you are concerned about being able to afford potentially higher rates, regardless if you are a customer of Breathe Easy or another provider, we can help you compare quotes from DUI-friendly insurance companies. We offer options designed to offer affordable rates for drivers with a DUI. By exploring multiple providers, we’ll work with you to find your best rate now and ensure you stay covered at a price that works for you in the future.

Check Your Coverage

Take a look at your policy to see if it meets the new insurance minimums in California. Even if it does, it might be a good idea to add more coverage than the minimum to be better protected. Having the minimum coverage means you’re only getting minimum protection against something unexpected happening.

Current Minimum Liability Limits in California

Right now, California’s minimum auto insurance requirements are among the lowest in the country. Drivers are required to have:

• $15,000 for injury or death to one person,
• $30,000 for injury or death to more than one person, and
• $5,000 for property damage.

These amounts may not reasonably cover the costs of many accidents, leaving drivers vulnerable to out-of-pocket expenses.

California’s 2025 Auto Insurance Limits

Beginning in 2025, California’s new minimum liability limits will be:

• $30,000 for injury or death to one person,
• $60,000 for injury or death to more than one person, and
• $15,000 for property damage.

This increase means you’ll have more coverage if you're at fault in an accident. While your premiums might go up, these increased insurance limits in CA will save you from bigger financial problems in the future.

This Change Affects Everyone

California customers with minimum coverage should be aware that their rates may increase in 2025. If you have any questions or if you’re concerned about being able to afford a potentially higher rate, don’t hesitate to reach out to Breathe Easy. We work with several dependable SR-22 providers across California and can help you explore options to make your payments more manageable