For the first time in 50 years, California will increase the minimum auto insurance limits

As the Rabbi Lawyer, it’s my job to stay on top of new legal developments in the automobile context.

To that end, a MAJOR development is in the works for all California drivers.

Last week, Governor Newsom signed into law Senate Bill 1107. The bill doubles California’s minimum auto insurance limits from $15,000 to $30,000.00.

This is huge news, because the current $15,000.00 minimum policy limits have been in effect since the early 1970s. That’s almost 50 years.

The bill acknowledges that millions of California drivers are driving around our roads every day with woefully inadequate insurance limits. I can’t tell you how many times I’ve handled a case where the offending driver had the paltry $15,000 limits. This bill will go a long way to changing that.

However, there is a caveat. The law does not take effect on January 1, 2025. That’s over two years away. It’s a step in the right direction and it can’t come soon enough.

Many would argue that $30,000 is still a low amount of minimum auto insurance. I advise my clients to carry as much insurance as they can afford—often $100,000 in coverage is sufficient, but not always. If the driver can afford more, I frequently advise to go for it.

Of course, the new law does not erase the need to carry underinsured and uninsured motorist coverage. Far too many people will continue to drive without sufficient insurance, and the best way to protect yourself and your loved ones is to maintain adequate uninsured/underinsured motorist coverage.

For questions about your auto insurance policy or coverage, feel free to reach out to my office.

And remember, my office is ready to assist, 24/6.