Meta Description: Learn about California’s updated auto insurance minimums—going from 15/30/5 to 30/60/15—as of January 1, 2025. Discover how this change impacts drivers, accident victims, and personal injury claims.

Introduction

If you’re a California driver or have been involved in an auto accident, you’re probably familiar with the state’s minimum auto insurance requirements. Historically, California has required relatively low limits compared to other states. However, beginning January 1, 2025, the minimum bodily injury coverage levels in California have officially increased. 

Below, we outline these new coverage requirements, explore the impact on personal injury claims, and share key insights to help you stay compliant and protected on the road.

What Changed on January 1, 2025?

Previously, the minimum liability insurance requirements in California were:

• $15,000 for bodily injury per person
• $30,000 for bodily injury per accident (if multiple people are injured)
• $5,000 for property damage

As of January 1, 2025, California drivers must carry:

• $30,000 for bodily injury per person
• $60,000 for bodily injury per accident
• $15,000 for property damage

In other words, the state has doubled the amounts for bodily injury and tripled the required property damage coverage. This adjustment aims to reflect rising medical and repair costs, offering greater financial protection for both victims and at-fault drivers.

Source: California Department of Insurance
(Note: While the California Department of Insurance has updated references to these new limits, always consult the official state website or your insurance policy documents for the most accurate and up-to-date information.)

Why Did California Increase the Minimum Coverage?

1. Rising Healthcare Costs

With medical expenses skyrocketing nationwide, the previous $15,000 per person limit often fell short of covering even basic emergency treatment following an accident. 

Doubling the bodily injury coverage addresses the reality that many injuries require far more than $15,000 in medical care.

2. Growing Vehicle Repair and Property Damage Expenses

Modern vehicles come equipped with advanced technology, which increases repair costs. Additionally, the cost of lliving and property in California has significantly risen, making the old $5,000 property damage limit inadequate.

3. Greater Financial Protection for All Parties

In car accidents, victims often face mounting medical bills, lost wages, and other unexpected expenses. At-fault drivers also need adequate insurance to avoid personal financial liability that can lead to lawsuits or even bankruptcy.  

To learn more about how you can protect yourself against drivers with inadequate bodily injury coverage, read our blog post on how  Underinsured Motorist Coverage and Uninsured Motorist Coverage can offer cover you coverage.  

Source: California Legislative Information
(Search “Minimum Bodily Injury Coverage Increase” and review bill analyses for details on the legislative intent behind these changes.)

How Does This Affect You?

1. Higher Premiums for Some

Because the required coverage levels are increasing, some drivers—especially those carrying the bare minimum—may see a rise in their insurance premiums. Insurance carriers have to assume more risk, which typically results in higher rates.

2. Improved Protection

While premiums may be higher, this also means you’re better protected if you’re involved in or at fault for an accident. The new minimums are more aligned with current healthcare and vehicle repair costs, reducing the chance of being underinsured.

3. Potential for Fewer Out-of-Pocket Costs

If you are injured in a car accident caused by another driver carrying only the minimum coverage, you’ll have access to higher insurance benefits. This may reduce or eliminate the need to pay out-of-pocket for medical bills or pursue additional legal action to cover your losses.

Tips for Staying Compliant and Protected

1. Review Your Policy

Check your current policy’s coverage limits. If you’re still carrying the old minimums (15/30/5), you’ll need to update your policy to meet the new requirements (30/60/15).

2. Shop Around

Different insurance carriers offer a range of rates and discounts. Obtain multiple quotes to ensure you get the best combination of coverage and price.

3. Consider Higher Limits or Umbrella Coverage

Even with increased minimums, you may want additional protection. If you have significant assets, an umbrella policy can offer an extra layer of coverage beyond standard auto insurance limits.

4. Consult an Attorney After an Accident

If you’re injured in a car accident or face liability for causing one, seek legal guidance from a California personal injury attorney. Legal advice can help ensure you receive the compensation you deserve or minimize your liability exposure.

How a Personal Injury Law Firm Can Help

If you’re involved in an accident—whether as a driver, passenger, or pedestrian—a personal injury law firm can assist you in navigating the complexities of California’s insurance system. From negotiating with insurance companies
to filing a lawsuit if necessary, having legal representation can increase your chances of a favorable settlement.

At our firm, we stay current on every legal change that impacts your case. We understand the nuances of the new 30/60/15 coverage requirements and will help you determine the best course of action if you’re injured due to someone else’s negligence or if you’re facing a claim. Our attorneys will evaluate your situation, guide you through filing insurance claims, and, if needed, represent you in court to protect your rights and secure maximum compensation.

Conclusion

The January 1, 2025 increase in California’s minimum auto insurance coverage marks a major shift in how the state addresses liability and protection on the roads. While the changes may lead to higher premiums for drivers, they also offer crucial financial security in an accident. Staying compliant with California’s new auto insurance requirements will help you avoid penalties, minimize personal risk, and ensure adequate coverage in the event of an accident.

If you have any questions about California’s new minimum bodily injury coverage or need assistance with a personal injury claim, contact our legal team today. We’re here to protect your rights, help you navigate the legal system, and advocate for the compensation you deserve.

References

1. California Department of Insurance
(Official website for California insurance regulations and updates.)

2. California Legislative Information
(State legislature website providing bill tracking and analyses regarding insurance law changes.)

3. California Insurance Code – Minimum Liability Requirements (Consult the updated sections detailing the new mandatory coverage limits.)

Disclaimer: This blog post is intended for informational purposes only and does not constitute legal advice. Laws and regulations are subject to change, and their interpretation may vary. For specific guidance regarding your situation, consult a qualified personal injury attorney.

The post Changes in the Law: California’s New Auto Insurance Limits [2025] appeared first on Impact Attorneys.

What is the SR-1 Form?

The SR-1 form, officially called the “Report of Traffic Accident Occurring in California,” is required by the California Department of Motor Vehicles (DMV).[1] This form is used to report accidents where:

Something often overlooked by drivers and attorneys is California’s requirement to report car accidents to the DMV within 10-days of the accident by filing a Report of Traffic Accident (SR-1) form.  Filing an SR-1 form with the DMV is almost always required after an auto accident. Whether you’re dealing with a fender bender or a more severe collision, knowing when and why to file this form can save you from costly penalties and ensure your rights are protected. Here’s what you need to know about filing an SR-1 form and why it’s so important for your legal and financial protection.

• Injuries or fatalities occurred, regardless of severity; or
• Property damage exceeds $1,000, which includes damages to both public and private property​.

This form must be submitted to the DMV, even if a police report or insurance claim has already been filed. It’s important to note that the responsibility of filing the SR-1 generally falls on the driver involved in the accident. 

When Should You File an SR-1 Form?

According to California law, you must file an SR-1 form within 10 days of the accident​. Failing to do so can lead to serious consequences such as:

• Suspension of your driver’s license until the form is submitted.
• Potential issues when filing a claim with your insurance provider or the other party’s insurance, particularly if the other driver is uninsured​.

Why is Filing the SR-1 Important?

1. Legal Compliance: Filing an SR-1 form is required by California law. Even if you’re not at fault, failure to file could result in legal penalties, including the suspension of your driving privileges.
2. Preserving Your Rights: Filing an SR-1 ensures you can pursue legal claims or compensation if necessary, especially in cases involving uninsured motorists. Without the SR-1, you may face hurdles when making an uninsured motorist claim using the SR-1 form​.
3. Clarity for Insurance Claims: Insurance companies will likely require the SR-1 for processing claims. Filing ensures that your claim is properly handled and that you are not left vulnerable in the event of a dispute​.

What to Do If You Forget to File the SR-1

If you’ve missed the 10-day window to file the SR-1, it’s important not to panic.  We recommend that you do the following: 

• File the SR-1 as soon as possible. The DMV may send you notice that an SR-1 has not been filed and threaten to suspend your license. File one as soon as you receive the notice and contact the DMV to let them know you submitted it. 
• Contact an attorney if you’re unsure about the filing process or if you have any question about the forms you should contact an attorney.

How to File the SR-1 Form

Filing the SR-1 is straightforward:

• Download the form from the DMV website or pick it up at any DMV or California Highway Patrol (CHP) office.[2]
• Complete the form with details about the accident, including date, location, and information about the involved parties.
• Submit the form to the DMV within the 10-day window.

While the process is simple, it’s advisable to consult with an attorney if you have any doubts, particularly when serious injuries or significant property damage are involved​.

Consequences of Not Filing the SR-1 Form

Neglecting to file the SR-1 form within the 10-day period can lead to severe consequences, such as:

• Driver’s license suspension until the form is submitted​.
• Delayed or denied insurance claims, especially if you plan to pursue an uninsured motorist claim​.
• Potential legal fines and the inability to recover compensation from the at-fault driver​.

Final Thoughts

Filing an SR-1 form is a critical step in ensuring your legal and financial protection following a car accident in California. While it may seem like just another administrative task, it plays a crucial role in maintaining your legal rights and protecting you from potential fines and penalties. To avoid complications, make sure you file the SR-1 promptly and accurately.

Need Help? At Impact Attorneys, we have extensive experience handling all aspects of car accident claims. If you or someone you know has been involved in an auto accident and needs assistance, contact us for expert legal guidance. We can help ensure that all necessary steps are taken to protect your rights and secure the compensation you deserve.

[1] DMV Report of Traffic Accident Occurring in California (SR-1) Form, https://www.dmv.ca.gov/portal/dmv-virtual-office/accident-reporting/

[2] https://www.dmv.ca.gov/portal/dmv-virtual-office/accident-reporting/

The post Guide to Filing SR-1 Form with DMV Following Auto Accident appeared first on Impact Attorneys.