California Auto Insurance Laws 2026: What Drivers Need to Know
California drivers are dealing with the biggest change to auto insurance requirements in over 50 years. Senate Bill 1107, also known as the Protect California Drivers Act, took effect January 1, 2025, and dramatically increased the minimum liability coverage every driver must carry. If you’re still adjusting to these changes or want to understand what’s happening in 2026, you need the facts now.
The new minimum liability limits doubled protection for bodily injuries and tripled coverage for property damage compared to the old 1967 standards. These changes affect every California driver, whether you have minimum coverage or comprehensive policies. More importantly, if you’ve been in an accident or are dealing with insurance issues, these new laws impact your rights and potential compensation.
At Castillo & Montes Attorneys At Law, our Southern California and San Diego car accident attorneys want to make sure you understand the current insurance laws and what to expect going forward. We’ve recovered over $700 million for injured accident victims in Southern California, and we can help you, too. Just call our personal injury law firm at 800-497-9774.
What Changed in 2025 (Still in Effect for 2026)
The new minimum liability limits increased to 30/60/15, meaning $30,000 for bodily injury per person, $60,000 for bodily injury per accident, and $15,000 for property damage. This replaced the old 15/30/5 limits that had been in place since 1967.
Previous Minimums (until December 31, 2024):
- $15,000 bodily injury per person
- $30,000 bodily injury per accident
- $5,000 property damage per accident
Current Minimums (2025-2034):
- $30,000 bodily injury per person
- $60,000 bodily injury per accident
- $15,000 property damage per accident
These limits will stay in place until 2035, when they’ll increase again to $50,000 per person, $100,000 per accident, and $25,000 for property damage.
Why These Changes Matter for Your Wallet
Medical costs and vehicle repair expenses have risen significantly over recent years due to inflation and advancing technology. The old limits simply couldn’t cover the real costs of accidents anymore. Without meeting these minimum insurance requirements, drivers risk facing legal penalties.
If you only had minimum coverage before 2025, your rates likely went up. However, this increase comes with major benefits. You now have better protection if you cause an accident, and you’re less likely to pay out of pocket if someone else hits you and doesn’t have enough insurance.
What You Need to Do Right Now
Existing policies automatically adjusted to meet the new requirements upon renewal starting January 1, 2025. You don’t need to take action because your insurance company handled the changes. But you should review your coverage to make sure it meets your needs.
Key steps to take:
- Review your current policy – Check if your coverage levels make sense for your situation. The new minimums might still not be enough if you have significant assets to protect.
- Shop around if rates have increased significantly – Since this is a statewide change, all car insurance companies are impacted, but some may offer better rates or discounts.
If higher premiums are a concern, the California Low Cost Auto Insurance Program offers lower-cost coverage for income-eligible drivers. CLCA’s limits remain unchanged, making it an attractive option for those affected by rising premiums.
How These Changes Affect Accident Claims
Higher liability limits mean that injured parties may recover more substantial settlements from at-fault drivers’ insurance policies. Victims of serious accidents will be less likely to face out-of-pocket expenses for medical bills or vehicle repairs.
If you’re involved in an accident in 2026, the higher minimums provide more protection, but they may still not be enough for serious injuries. With approximately 17% of California drivers uninsured, uninsured motorist coverage provides an essential safety net for responsible motorists.
What’s Coming Next
The 2025 limits will remain in effect for ten years until 2035, when they will increase again. On January 1, 2035, California drivers will be required to have minimum liability limits of $50,000 per person, $100,000 per accident, and $25,000 for property damage.
No additional major changes are scheduled for 2026 specifically, but California continues to evaluate insurance regulations. The state wants to ensure coverage keeps up with inflation and provides adequate protection.
Contact Our Southern California & San Diego Car Accident Attorneys
California’s new auto insurance laws provide better protection than the old 1967 standards, but they’re still just minimums. The changes ensure auto insurance keeps up with inflation and that California drivers are more adequately protected. However, if you have assets to protect or want comprehensive coverage, you’ll likely need more than the state minimums.
At Castillo & Montes Attorneys At Law, we are ready to help you after a serious accident or injury. Our law firm has the resources and experience necessary to help you obtain fair and just compensation after an accident.
Call us at 800-497-9774 or contact us online today to talk to an experienced San Diego personal injury lawyer or any of our experienced accident lawyers from our offices located in Pomona, Riverside, Indio, Cathedral City or San Diego.
Attorney Domingo Castillo handles workers’ compensation, personal injury, family law & immigration throughout Southern California from our 5 offices: Indio, Pomona, Riverside, San Diego & Cathedral City. We help clients file injury claims, obtain residency & citizenship, and we assist families through divorce, child custody and all family law matters.
