11/15/2022
On Sept. 29, 2022, California Governor Gavin Newsom signed SB 1107, doubling California’s minimum liability insurance limits.
First set in 1967, California’s minimum liability insurance limits are $15,000 for bodily injury or death of any one person; $30,000 for bodily injury or death for all persons; and $15,000 for damage to the property of others as a result of any one crash.
Alternatively, a motor vehicle owner may deposit $35,000 with the Department of Motor Vehicles as “proof of financial responsibility.” Under existing law, violating the Vehicle Code by not carrying minimum liability auto insurance or formally showing proof of financial responsibility is a crime.
In an effort to give insurance companies time to set new rates and to get them approved by the state, the bill will go into effect Jan. 1, 2025. Drivers now will be required to carry auto insurance of $30,000 for bodily injury or death of one person; $60,000 for bodily injury or death of all persons; and $15,000 for damage to the property of others as a result of any one accident. Proof of financial responsibility is raised to $75,000.
SB 1107, was sponsored by the Consumer Attorneys of California and carried by Senator Bill Dodd (D-Napa).
Costs of vehicle repairs, medical services, and emergency services have increased significantly over the last 55 years, while the minimum required insurance limits have not changed. These low-ball limits put California among the bottom three states with the lowest limits.
Another significant rise in minimum insurance limits and in proof of financial responsibility will take place in 2035.
