CA New Minimum Auto Insurance Limits: What Drivers Need to Know
For over 50 years, California drivers have been legally required to carry auto liability insurance with minimum coverage limits of $15,000 for injury or death to one person and $30,000 for injury or death to multiple people in a single accident—commonly referred to as “15/30” coverage. While this standard may have seemed sufficient decades ago, the cost of medical care, lost income, and other damages resulting from auto collisions has dramatically increased. Recognizing that the outdated limits no longer provided meaningful protection for injured parties, California lawmakers passed legislation to raise the minimum required coverage to $30,000 per person and $60,000 per accident—known as “30/60” coverage.
Although the law officially took effect on January 1, 2025, the change does not immediately apply to every insured driver. Instead, the new limits will take effect upon renewal of an existing auto insurance policy. So if your policy renewed before January 1, 2025, you will likely still be operating under the old 15/30 limits until your next renewal date. At that time, your insurer is required to adjust your coverage to meet the new 30/60 minimum unless you already carry higher limits.
But what exactly does “30/60” mean? In short, these numbers refer to the maximum amount your insurance policy will pay for bodily injury liability in the event you are found at fault in a collision. The first number—$30,000 per person—is the most any single injured party can receive from your policy. The second number—$60,000 per occurrence—is the total amount your policy will pay out for all injured parties combined from a single incident.
For example, if you are involved in a crash where one person is injured, the most your insurer will pay that individual is $30,000. If three people are injured, then your policy will cover up to $60,000 total, but no one person can receive more than $30,000. This means the $60,000 may be split among all three individuals depending on the severity of their injuries, but no single claimant can exceed the $30,000 cap.
While it’s true that most drivers will see a modest increase in their premiums with this change, the benefit is significantly greater protection for those injured in auto accidents. A single trip to the emergency room or a few sessions of physical therapy can easily exceed the outdated $15,000 per person limit. The new minimums offer a slightly better safety net for both insured drivers and victims of collisions, helping to ensure that injury-related expenses can be covered more realistically.
However, even with these increased limits, insurance coverage isn’t always guaranteed to make an injured person whole. There remains the ever-present risk of encountering an uninsured or underinsured driver. Despite legal requirements, some drivers continue to operate vehicles without any insurance at all, and others may only carry the new minimum—which, in the case of severe injuries, may still fall far short of covering medical bills, lost wages, and pain and suffering.
That’s why we strongly recommend that drivers also opt in to uninsured/underinsured motorist (UM/UIM) coverage when purchasing or renewing their auto insurance policies. This optional coverage protects you and your passengers if you’re injured by a driver who lacks adequate insurance. It acts as a backup plan—stepping in to pay for damages the other driver should have been responsible for, but couldn’t cover.
California’s move to update its insurance requirements is a long overdue and welcome change, that should help those injured in motor vehicle collisions. It is a big step in the right direction, but will still will not cover for a significant injury.
