CALIFORNIA—California legislators have created a new auto insurance law known as the “30/60” coverage. Although the bill passed and officially took effect on January 1, 2025, the change did not immediately include every insured driver. However, once you renew your existing car insurance policy, the new limits will then take effect.
Why the Change; What Does This All Mean?
For about five decades, California drivers had “15/30” coverage. This meant that anyone behind the wheel had to legally carry auto liability insurance with minimum coverage limits of $15,000 for injury or death to one person and $30,000 for injury or death to multiple people in a single accident.
However, times change, and inflation causes everything to go up, including damages from a car collision. This can mean medical care costs, repairs to your vehicle, lost income or saving capacity or even funeral and burial costs if a loved one died in the accident.
Golden State lawmakers considered the minimum coverage limits to be outdated as they no longer provided significant protection for injured parties.
A Better Safety Net for Drivers and Victims
California experiences tens of thousands of car accidents a year, many resulting in injury and death. The city of Fremont alone saw more than 1,000 injuries and 9 fatalities in 2023. Insurance policies are intended to provide for these victims and aid in their recovery.
Under the “30/60” coverage, these figures reflect the maximum amount your auto insurance policy will pay for bodily injury liability if you’re at fault in a crash. Most drivers can expect a modest rise in their insurance premiums with the new law change. According to the latest statistics, California drivers can expect their auto insurance premiums to rise by more than 15%, marking the biggest jump in the country.
Every driver has a unique profile, but on average, California drivers pay about $2,912 per year for full coverage car insurance and $1,207 for minimum coverage. These numbers are based on a 40-year-old driver with good credit and no driving violations.
The new “30/60” minimum coverage will offer a better safety net for drivers and victims. For instance, if you’re involved in a car accident where one person is injured, the most your insurer will pay that individual is $30,000. If three people are injured, your policy will cover a total of up to $60,000. However, no single person can receive more than $30,000.
Are the New Car Insurance Minimums Enough?
Here’s something else to consider: Although the minimum coverage limits are increasing, what happens if your car is hit by an uninsured or underinsured driver? Your insurance coverage could fall short.
Despite state laws in California, many drivers still operate their vehicles without adequate auto insurance coverage. According to the Insurance Information Institute, the Golden State has a higher-than-normal number of uninsured drivers at 17% or approximately 4.7 million uninsured motorists.
Then, how do you protect yourself?
A seasoned personal injury law firm would advise adding uninsured/underinsured motorist (UM/UIM) coverage to your policy. It’s a wise option to consider, as the extra coverage would protect you and your passengers from injury by a driver without sufficient insurance. Without UM/UIM coverage, you could end up paying for medical bills or vehicle repairs out of your own pocket. Even if you file a claim against your own insurance policy, you may have a large collision deductible or not have enough medical payments/personal injury protection to cover the injuries caused to you or your passengers.
UM/UIM insurance will cover your injuries, your passengers’ injuries and damage to your vehicle if hit by a driver who has zero auto insurance coverage or one who doesn’t have enough.
UM/UIM coverage can serve as an excellent financial backup.
