California Raises Auto Insurance Minimums for 2025 Drivers
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Recognizing that these outdated limits no longer provided meaningful protection for injured parties, California lawmakers passed a new auto insurance law, raising the minimum required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. If your policy renewed before January 1, 2025, you will likely still be operating under the old 15/30 limits until your next renewal. At that time, your insurer must adjust your policy to meet the new minimum, unless you already carry higher limits.
But what exactly does “30/60” mean? These numbers refer to the maximum amount your auto insurance policy will pay for bodily injury liability if you’re 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 your policy will pay out for all injured people in a single crash.
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, your policy will cover up to $60,000 total, but no one person can receive more than $30,000.
Most drivers will see a modest increase in premiums with this law change. However, the benefit is greater protection for injured parties. A single trip to the emergency room or a few sessions of physical therapy can easily exceed the outdated $15,000 limit. The new 30/60 minimums offer a better safety net for both drivers and victims of auto accidents.
Still, even with increased limits, insurance coverage may fall short in serious injury cases, especially if you’re hit by an uninsured or underinsured driver. Despite legal requirements, some drivers still operate vehicles without sufficient coverage.
That’s why we strongly recommend adding uninsured/underinsured motorist (UM/UIM) coverage to your policy. This optional coverage protects you and your passengers if injured by someone without adequate insurance. It serves as a financial backup, paying for damages the at-fault driver couldn’t cover.
California’s 2025 insurance update is a much-needed step forward, but it’s not a cure-all. If you’ve been injured in a crash and need help understanding your rights or filing a claim, our team is here to help.
