Increased Auto Insurance Minimum Liability Coverage for 2025
California drivers in 2025 will have increased mandatory auto liability coverage. This increase is long overdue and will greatly help some accident victims. The Hicks Law Firm will discuss what this means for drivers, how it’ll affect your rates, and what steps you can take to protect yourself. We represent clients injured in vehicle accidents and know the importance of insurance coverage in these situations.
In most cases, there would be no adequate compensation for injury victims if liability coverage was unavailable. For injury compensation, the more insurance there is, the better. At the Hicks Law Firm, Orange County car accident lawyer Aaron Hicks can answer your questions about vehicle insurance and help you file a claim after an accident.
Updated Figures Reflect Higher Costs
Like nearly all states, California requires drivers to have liability coverage, and state law requires you to have a minimal level of liability insurance. It would pay for injuries or physical damage that you cause others.
For the first time in 56 years, according to State Farm Insurance, California increased its minimum auto insurance coverage requirements as of the start of the year. The state set the prior minimal coverages for injuries, deaths, and property damage in 1968.
That year, you could buy a new BMW for $2,597 and a used Ford Mustang for $2,085. The average US new vehicle cost as of last November was $48,724. The country’s total spending on healthcare in 1969 was estimated at $60 billion. Last year, it was estimated at $5 trillion. Due to inflation, what $1 bought in 1968 will cost about $9 today.
Gov. Gavin Newsom signed Senate Bill 1107, or the Protect California Drivers Act, into law three years ago. It increased the minimum auto liability limits but wasn’t effective until the start of 2025. Before this update, minimum liability requirements were:
- $15,000 for injuries or death to one person.
- $30,000 for injuries or death to multiple people in one accident.
- $5,000 for property damage.
Those requirements are now the following:
- $30,000 for injuries or death to one person.
- $60,000 for injuries or death to multiple people in one accident.
- $15,000 for property damage.
The lower coverage exposed Californians to severe financial losses if a negligent driver causing an accident only had minimal coverage, few assets of their own, and the injuries or property damage caused by the vehicle crash were more than minimal.
Your carrier should’ve automatically increased your coverage at the start of the year. You should check to ensure they did so you won’t get ticketed for failure to prove sufficient insurance.
More Coverage, But Most Drivers Won’t See a Rate Increase
Most drivers purchase more coverage than the new minimums, so they don’t have any more liability insurance to pay for. Those who carried minimal coverage should see slight premium increases. However, your premium is based on many factors, including your claim history, driving record, location, and the model and make of your vehicle.
You Should Have More Than the Minimal Coverage, Whether It’s Updated or Not
Another way to prevent the problem of holding the financial bag if you’re in an accident with a driver without insurance or who has the bare legal minimum is to purchase uninsured/underinsured motorist (UM/UIM) coverage. It’s optional, but you should buy it.
If a negligent driver causes a car accident that injures you, you can make a claim on their policy. That company may agree their insured is at fault and cover your losses. If those losses exceed their policy limit, they may pay up to that amount, discharging their legal responsibilities. Unless that other driver has assets you can access through a legal action, you’re stuck with your losses being only partially covered.
UM/UIM can also be used if you’re the victim of a hit-and-run accident. Since you don’t know who that driver is, you can’t make a claim on their insurance if they have any.
Through UM/UIM, after exhausting the other driver’s coverage, you may be able to tap into the coverage you bought from your carrier. Ideally, this will pay for all your losses.
Aaron Hicks is an Orange County Car Accident Attorney You Can Trust
If someone with little or no insurance injures you or a loved one, Aaron Hicks and the Orange County car accident Hicks Law Firm will help you in any way we can. Our Orange County car accident lawyers help injured clients throughout Southern California and Orange County, including Costa Mesa, Irvine, Tustin, Newport Beach, and Huntington Beach.
Thanks to what we’ve learned during our years of experience, we can help you through this challenging period. We will make this process as easy as possible so you can focus on your family, return to work, and recover from your injuries.
Over the years, we have assisted many injured plaintiffs in Orange County and can help you, too. Call 949-541-9944 or fill out our online contact form to speak with an Orange County car accident attorney about your case.
Aaron Hicks is a civil trial attorney and founder of Hicks Law Firm, based in Orange County with offices in San Diego and Tennessee. His practice includes representing plaintiffs in personal injury cases including motor vehicle accidents, premises liability, dog bites and wrongful death. Mr. Hicks is and AV Rated attorney, Super Lawyer and is currently on the Board of Directors of the Orange County Trial Lawyers Association where he serves as 1st Vice President.
