What Is the New Car Insurance Law in California?
David J. Muñoz | July 10, 2026 | Car Accidents
California’s new car insurance law requires drivers to carry higher minimum liability insurance limits. As of January 1, 2025, drivers must have at least $30,000 for injury or death to one person, $60,000 for injury or death to more than one person, and $15,000 for property damage.
Mission Personal Injury Lawyers can help if you’ve been in an accident and are unsure about how this new law applies to you.
What Did California’s New Car Insurance Law Change?
The law increased the minimum amount of liability coverage California drivers must carry. Liability insurance pays other people for injuries or property damage when the insured driver causes a crash.
The new minimum limits are:
- $30,000 for injury or death to one person
- $60,000 for injury or death to more than one person
- $15,000 for property damage
These limits apply to private passenger vehicles, commercial vehicles, and fleet vehicles. Drivers may buy more coverage, but they cannot legally carry less than the minimum.
Why Did California Raise the Minimum Insurance Limits?
California raised the limits because the old minimums often did not cover the real cost of a serious crash. Medical care, vehicle repairs, and lost income can add up fast after an accident.
For example, $15,000 in injury coverage may not cover an ambulance ride, emergency care, imaging, follow-up visits, and missed work. The new law gives injured people a better chance of recovering some losses from the at-fault driver’s policy.
Still, the new limits may not be enough in a severe crash in San Diego. A serious brain injury, spinal cord injury, surgery, or long hospital stay can cost far more than $30,000.
How Does the New Law Affect San Diego Drivers?
San Diego drivers must make sure their policies meet the new 30/60/15 limits. Most insurance companies should update policies when they renew, but drivers should still review their coverage.
This is especially important in San Diego because local crashes can involve heavy traffic, freeway collisions, rideshare vehicles, delivery drivers, tourists, pedestrians, and cyclists. A single crash on I-5, I-8, I-15, or SR-163 can cause serious injuries and several claims at once.
If your limits are too low, you could face personal financial risk after causing a crash. If you are injured by another driver, the at-fault driver’s policy limits can affect how much insurance money may be available.
What if the At-Fault Driver’s Insurance Is Not Enough?
If the at-fault driver’s insurance is not enough, an injured person may need to look for other sources of recovery. These may include uninsured/underinsured motorist coverage, other liable parties, or additional insurance policies.
This is where legal experience matters. The firm’s attorneys have recovered over $150 million for injured clients, and they can investigate whether more than one party or policy may apply. For example, a crash may involve a negligent driver, an employer, a vehicle owner, a rideshare company, or another responsible party.
Does the New Law Change Who Is at Fault?
No—the new law changes minimum insurance limits, not fault rules. California still uses a fault-based system for car accidents. The person or party that caused the crash can be held responsible for the harm they caused.
California also follows a pure comparative fault rule. This means your compensation can be reduced if you were partly responsible for the accident. For example, if you were 20% at fault, your damages may be reduced by 20%.
Because insurance companies try to use these laws to reduce how much they pay accident victims, you need a seasoned attorney on your side to fight back against these unfair allegations. Our lawyers have a combined 43 years of experience and are familiar with how to counter these arguments effectively.
Frequently Asked Questions
What Happens if I Drive Without Insurance in California?
Driving without insurance can lead to penalties, fines, license issues, and personal liability if you cause a crash. You may also have trouble recovering certain damages after an accident.
Should I Carry More Than the Minimum Insurance?
Many drivers choose higher limits because the minimum coverage may not be enough after a serious crash. Higher limits can offer more protection if you cause an accident.
Does the New Law Apply To Older Policies?
The new limits apply to policies issued or renewed after the effective date. Drivers should review their policy documents or contact their insurer to confirm their current limits.
Contact the San Diego Car Accident Attorneys at Mission Personal Injury Lawyers for a Free Consultation
After a crash in California, it can be difficult to know whether the available insurance coverage will be enough to pay for your losses. An attorney can evaluate the details of your claim and help you understand your options.
For more information, contact experienced San Diego car accident lawyers at Mission Personal Injury Lawyers to schedule a free consultation today.
If you’ve been injured in San Diego or Chula Vista, please call Mission Personal Injury Lawyers for a free case evaluation with a personal injury lawyer or contact us online.
We proudly serve San Diego County and throughout California.
Mission Personal Injury Lawyers – San Diego Office
3666 Fourth Ave, San Diego, CA 92103
(619) 777-5555
Mission Personal Injury Lawyers – Chula Vista Office
690 Otay Lakes Rd #130, Chula Vista, CA 91910
(619) 722-3032
We also serve the state of Texas. For legal assistance, contact our personal injury law office in El Paso today.
Mission Personal Injury Lawyers – El Paso Office
201 E Main Suite 106, El Paso, Texas 79901
(915) 591-1000
