Important Changes to California Minimum Liability Limits

Effective January 1, 2025: California raised the state-mandated minimum insurance limits for Bodily Injury and Property Damage on Personal Auto and Commercial Auto policies.

NOTE: Minimum limits have not changed since 1967.

The increase will provide drivers with enhanced financial protection against the rising costs associated with medical expenses and vehicle repairs resulting from accidents.

For most policies effective on or after January 1, 2025, any existing policies with coverage limits lower than the new state-required minimum limits will automatically be adjusted to comply with these new standards. This means that your policy will benefit from enhanced coverage without the need for direct intervention, ensuring compliance with state regulations.

Bodily Injury: Increased from $15,000 per person / $30,000 per accident to $30,000 per person / $60,000 per accident.

Property Damage: Increased from $5,000 per accident to $15,000 per accident.

Uninsured/Underinsured Motorists Bodily Injury Coverage: Increased from $15,000 per person / $30,000 per accident to $30,000 per person / $60,000 per accident.

Uninsured Motorist Property Damage: No Change. Policies with Uninsured Motorists Property Damage coverage will remain unchanged. Please refer to your Declarations page for specific policy details.

Frequently Asked Questions:

When will the changes to the minimum insurance limits take effect?
The changes to the minimum insurance limits for Bodily Injury and Property Damage will take effect on January 1, 2025.

How will policyholders be informed about the changes?
Policyholders will receive a direct notice from their Insurance carrier.

Why is California increasing the state-mandated minimum insurance limits for Bodily Injury and Property Damage?
The increase in state-mandated minimum insurance limits is being made to better protect drivers against rising costs associated with accidents.

What happens if my clients do not want the increased coverage?
Given the state mandate, lower limits will not be available

We appreciate your attention to this important update. If you have any questions contact your United agent for assistance, thank you.