Starting January 1, 2025, California’s Senate Bill 1107 (SB 1107) will bring major changes to the state’s car insurance requirements. Known as the Protect California Drivers Act, this legislation increases minimum auto insurance liability limits for the first time in decades, aiming to provide drivers and accident victims with stronger financial protection.
At Hillstone Law, we want California drivers to fully understand what SB 1107 means for their policies, their budgets, and their legal rights.
Overview of Senate Bill 1107
SB 1107 updates California’s insurance laws to reflect today’s economic realities, including rising healthcare and repair costs. Its main goal is to ensure accident victims are better compensated while keeping the insurance system fair and accountable.
The most significant change is the increase in liability coverage minimums, but the bill also introduces consumer protections and updated regulatory measures to strengthen trust in the insurance process.
📌 RELATED READ: [How Much Is Car Insurance in California?]
Key Provisions of Senate Bill 1107
1. Increased Auto Insurance Minimums
The new liability minimums are:
- $30,000 for bodily injury or death per person
- $60,000 for bodily injury or death per accident
- $15,000 for property damage per accident
This replaces the outdated 15/30/5 limits. With medical bills and repair costs climbing, these higher minimums ensure victims aren’t left covering large expenses out of pocket.
2. Consumer Protection Against Fraud
SB 1107 enhances fraud detection measures to prevent staged accidents or inflated claims that drive up premiums. Insurers must now implement advanced fraud prevention tools and report suspicious trends to regulators, helping stabilize insurance costs for all drivers.
3. Transparency for Policyholders
Insurance providers must now clearly communicate coverage details, premium adjustments, and consumer rights. This ensures drivers understand exactly what they’re paying for and what their policy includes.
4. Automatic Policy Adjustments
If your current liability coverage is below the new limits, your policy will automatically adjust upon renewal to meet SB 1107 requirements. While this may mean higher premiums, it also ensures you’re legally compliant and better protected.
How SB 1107 Will Affect Your Premiums
- Higher Minimum Coverage = Higher Costs
Drivers carrying only minimum liability will see the biggest increases. - Better Protection in Serious Accidents
Victims will have access to more compensation for medical bills, lost wages, and property damage. - Potential Discounts Still Apply
Safe driver programs, bundling policies, and telematics discounts can help offset rate increases.
How to Prepare for the New Law
Here are four steps California drivers should take before SB 1107 goes into effect:
- Review Your Current Policy
Ensure your coverage meets the new minimums and determine whether additional protection (like uninsured motorist coverage) may be necessary. - Ask About Discounts
Speak with your insurer about good driver, low-mileage, or bundling discounts that may lower your premiums. - Understand Your Premium Changes
Request a detailed breakdown of how SB 1107 will affect your specific policy costs. - Seek Legal Guidance if Needed
If your insurer unfairly raises rates, denies a claim, or fails to honor your coverage, a personal injury attorney can protect your rights.
Who Will Be Affected by SB 1107?
- Drivers: All California drivers must meet the new liability minimums.
- Insurance Providers: Required to comply with transparency and fraud prevention measures.
- Accident Victims: Will benefit from stronger financial protections.
Failing to comply with the new requirements could result in fines, coverage lapses, or serious legal consequences if you’re involved in an accident without adequate insurance.
Final Thoughts
The 2025 California car insurance law changes under SB 1107 will affect every driver in the state. While higher premiums may cause financial strain, the increased minimums provide much-needed protection in serious accidents and align coverage with today’s costs.
At Hillstone Law, we help Californians understand these changes and fight for fair treatment after car accidents.
