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Auto Insurance Liability Limits Go Up in 2025

June 24, 2024

For the first time in 57 years, the state of California is raising the minimum liability requirements for drivers. Called the Protect California Drivers Act, this legislation is designed to protect California drivers involved in car accidents.

Why Liability Limits Are Increasing

Without sufficient liability insurance, many individuals incur significant debt after an accident because they didn’t have enough insurance to cover the collision costs. If you cause an accident and don't have enough liability coverage, you could be personally responsible for paying for the damages. This could include medical bills, property damage, and legal fees.

Current Minimum Liability Insurance Limits

These limits have remained the same since 1967:

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

New Liability Limits for 2025:

$50,000 for injury/death to one person; $100,000 for injury/death to more than one person; and $25,000 for property damage. 

These revised limits represent the minimum requirements set by the state, and the California Department of Insurance recommends that drivers consider purchasing higher liability limits for more comprehensive protection. By doing so, drivers can minimize their personal financial exposure in the event of a costly accident, safeguarding their assets and ensuring peace of mind.

How Much Liability Coverage Do You Need?

A good rule of thumb is to carry liability limits of at least $100,000 per person and $300,000 per accident. This will provide you with significantly more protection in the event of an accident, giving you peace of mind knowing that you are financially protected.

When determining how much liability coverage you need, there are several factors to consider, including your assets, income and driving habits. If you have a high net worth or earn a high income, you may want to consider purchasing even higher liability limits to protect your assets. Additionally, if you drive frequently or in high-risk areas, you may also want to consider increasing it. The cost depends on the amount of coverage you choose your driving history and other factors.

Review All Your Coverage Amounts

In addition to liability coverage, your auto insurance policy provides coverage for collision, comprehensive and uninsured/underinsured motorist coverage. Collision coverage helps pay for damage to your car if you're in an accident, regardless of who's at fault. Comprehensive coverage helps pay for damage to your car from other causes, such as theft, vandalism or fire. Uninsured/underinsured motorist coverage helps pay for your injuries if you're hit by a driver who doesn't have insurance or doesn't have enough insurance. An insurance review will help determine the amount you need, depending on your circumstances.

Here are a few things you can do to save money on your auto insurance:

Increase your deductible. Your deductible is the amount you have to pay out of pocket before your insurance coverage kicks in. The higher your deductible, the lower your monthly premium will be. However, be sure to choose a deductible that you can afford to pay in the event of an accident.

Drop collision and comprehensive coverage on older cars. If you have an older car that’s not worth very much, you may want to consider dropping collision and comprehensive coverage. These types of coverage protect your car from damage caused by accidents and other covered events, but they can be expensive. For an older vehicle, it may not be worth the cost.

Consider usage-based insurance. Usage-based insurance determines your premium on how much you drive. If you drive less, you pay less.

Take advantage of discounts. Many insurance companies offer discounts for things like being a safe driver, having a good credit score and owning a car with safety features. Bundling your home or renter's insurance policy with your auto policy could save money too. A comprehensive insurance review can help you see if your coverage is on track, or you need to make some changes.


CA Insurance License 0I19344.