The California Minimum Auto Insurance Increase in 2025: What You Need to Know

In 2025, California will increase its minimum auto insurance requirements, aiming to better reflect the rising costs of medical care, vehicle repairs, and accident liabilities. The state’s current minimum insurance limits, set in the 1980s, have failed to keep pace with inflation, making this adjustment necessary to protect drivers and ensure fair compensation for accident victims.

The new minimum coverage limits will be:

• $30,000 for injury or death to one person
• $60,000 for injury or death to two or more people
• $25,000 for property damage

These limits represent a significant increase from the current levels of $15,000, $30,000, and $5,000, respectively. This change aims to better cover the financial impact of accidents, particularly given the growing number of uninsured and underinsured drivers in the state.

For most drivers, this means higher premiums. Insurance companies will adjust rates based on the new minimums, and drivers who currently have the minimum coverage will see their premiums increase. However, if you already carry higher limits, your insurance cost might not rise as much.

Experts recommend considering additional coverage beyond the minimum to better protect yourself in case of a serious accident. Higher coverage limits can offer more financial security and reduce the risk of out-of-pocket expenses following a crash.

More information is available on the DMV website.