What You Need To Know About California’s Car Insurance Minimums

In 2025, California drivers will face a significant change in car insurance requirements as the state is raising the minimum coverage limits. California’s car insurance minimums have for far too long been comparable to smaller, less populated states like New Jersey and Louisiana. As a personal injury law firm, we’re excited to be seeing California finally adjusting its requirements to better align with the state’s high traffic volume and the rising costs of medical care and vehicle repairs.

There’s still room for improvement, though.

What’s Changing?

According to the California Department of Motor Vehicles, beginning January 1, 2025, the minimum financial responsibility requirement in California will increase to:

• $30,000 for bodily injury or death for one person in an accident (up from $15,000)
• $60,000 for bodily injury or death for more than one person (up from $30,000)
• $15,000 for property damage (up from $5,000)

These long overdue increases are designed to make sure that drivers have enough coverage to pay for medical expenses, vehicle damage, and other accident related costs. While the new minimums are a step in the right direction, they may still fall short when it comes to fully compensating accident victims, especially in cases involving severe injuries.

Personal injury attorney Miguel Custodio of Custodio & Dubey says, “These minimum car insurance requirements hadn’t changed since 1976, when a brand new Ford Pinto cost about $2,600. And with today’s health care costs, $15,000 bodily injury coverage would not even pay for a broken arm.

“And I would argue that these new minimums, which are legislated to remain in place for the next decade, are still not enough when you consider the dollar’s buying power now versus in 1976. To bring today’s values back up to their actual buying power would mean setting a 75/150/25 minimum.”

Stay Safe and Protected

We encourage all California drivers to review their current insurance policies and consider increasing coverage to better protect yourself in case of an accident. With medical costs and vehicle repair prices on the rise, it’s a smart move to make sure you’re fully covered. This may mean an increase on your insurance rate, but having that coverage can save you thousands if you’re ever involved in an accident.

Miguel says, “Increased coverage will of course necessitate a rate bump. I figure insurance for the new 50/100/25 minimum will be between $800 and $1,000 annually, up from today’s roughly $500-$650 average. Of course rates depend on the driver’s record and vehicle. Californians depend on their vehicles, yet many do not have the financial resources to replace a car or pay medical bills if they’re involved in a serious crash.”

If you’ve been involved in an accident, our team of experienced personal injury attorneys is ready to provide guidance and fight for the compensation you deserve. At Custodio & Dubey, we’re committed to keeping you informed and safe on the road! Call today to learn more.