Starting January 1, 2025, California drivers are required to carry higher minimum auto insurance liability coverage under Senate Bill 1107 (SB 1107). This new law doubles the minimum insurance limits that drivers must have to operate legally. For Los Angeles residents, where traffic density and accident rates are among the highest in the state, this change is especially important. Understanding how SB 1107 impacts insurance, accident claims, and compensation rights can help drivers, accident victims, and families make better decisions after a crash.
What SB 1107 Changed
For decades, California’s minimum auto liability coverage was known as “15/30/5,” meaning:
- $15,000 for injury or death to one person in an accident,
- $30,000 for injury or death to multiple people in one accident,
- $5,000 for property damage.
These limits were among the lowest in the nation, often leaving victims of serious accidents with bills far greater than what insurance covered. SB 1107 raised these minimums to 30/60/15:
- $30,000 per person for injury or death,
- $60,000 per accident for injury or death to multiple people,
- $15,000 for property damage.
This marks the first major increase to California’s auto insurance minimums in over 50 years, reflecting the reality of modern medical costs and vehicle repair expenses.
Why the Law Changed
The old limits often left accident victims struggling to cover even basic emergency medical bills, let alone long-term treatment, lost wages, or rehabilitation. In Los Angeles, where healthcare costs and vehicle values are higher than average, the old 15/30/5 structure was especially inadequate. SB 1107 was designed to ensure that minimum coverage provides a more realistic safety net for accident victims.
How SB 1107 Affects Accident Victims in Los Angeles
For victims of car crashes, motorcycle accidents, or pedestrian collisions, the higher liability limits mean:
- More compensation available: Injured parties may now recover more from the at-fault driver’s insurance policy before needing to pursue other options.
- Fairer settlements: Lawyers representing victims in Los Angeles have greater leverage to negotiate compensation that actually reflects medical and property losses.
- Property coverage tripled: The property damage minimum increased from $5,000 to $15,000, which better reflects the cost of repairing or replacing vehicles in today’s market.
However, it is important to note that while the minimums doubled, they may still fall short in severe cases. For example, catastrophic injuries can easily exceed $100,000 in medical expenses alone. Victims may still need to rely on uninsured/underinsured motorist coverage or file lawsuits to recover the full amount of damages.
Impact on Insurance Premiums
One major concern about SB 1107 has been its effect on premiums. For drivers who previously carried only the state minimum, premiums will likely rise to reflect the higher required limits. However, for drivers who already carried higher-than-minimum coverage, the change may have little or no impact on costs.
Insurance companies will pass some costs to consumers, but proponents of the law argue that the benefits—higher protection for victims and fewer uncompensated losses—outweigh the modest increases.
Examples of How SB 1107 Changes Accident Claims
Here are a few practical scenarios to show how the new law may affect real cases:
- Single-injury crash: Under the old law, a victim could only recover up to $15,000 from the at-fault driver’s policy. Now, the minimum is $30,000—closer to covering ER visits, surgery, and therapy.
- Multi-victim crash: A two-passenger accident under old limits capped at $30,000 for both victims. Now, it’s $60,000, allowing more equitable distribution of damages.
- Property-only crash: Damage to a newer vehicle could easily exceed $5,000. With the new $15,000 minimum, more repair costs may be covered without the victim having to sue.
Remaining Gaps in Coverage
Even with the increase, California’s minimums may still leave accident victims undercompensated:
- Severe injuries: Major medical expenses, rehabilitation, and lost income often exceed even the new minimums.
- Pain and suffering: These damages are not automatically covered under liability minimums; they require legal advocacy to pursue.
- Uninsured drivers: Minimum requirements do not address the ongoing issue of uninsured drivers, who still pose risks to Los Angeles motorists.
For this reason, drivers are encouraged to carry higher-than-minimum liability insurance and uninsured/underinsured motorist coverage to protect themselves financially.
What Los Angeles Drivers Should Do
- Review your policy: Check whether your coverage now meets or exceeds the new minimums.
- Consider raising limits: If you only carry the minimum, think about whether higher coverage would provide better protection for your assets and your family.
- Update uninsured motorist coverage: This ensures that you are protected if you’re hit by someone carrying only the minimum or no insurance at all.
- Consult an attorney after an accident: If you’ve been injured, a Los Angeles accident lawyer can evaluate whether the new limits fully cover your damages or if you should pursue additional legal remedies.
Why This Matters for Los Angeles
Los Angeles has some of the busiest highways and most complex traffic patterns in California. Accidents often involve multiple vehicles and high costs. SB 1107 provides stronger baseline protection for victims, but it does not replace the need for careful legal representation. For accident victims, it may mean more resources are available—but for serious injuries, navigating the legal process remains essential.
Related Reads on Our Blog
- California Car Accident Laws 2025 Explained
- Los Angeles Car Accident Statistics & Trends
- What to Do After a Car Accident in Los Angeles
Conclusion
SB 1107 represents a major shift in California’s auto insurance requirements. For Los Angeles drivers and accident victims, it means higher baseline coverage, more protection for medical bills and property damage, and stronger negotiating power in claims. But serious accidents will still exceed the new minimums, and uninsured drivers remain a challenge. Reviewing your policy and seeking legal advice after a crash are the best ways to protect yourself and ensure you receive the compensation you deserve.
If you’ve been involved in an accident in Los Angeles, our team is here to guide you through the claim process under California’s new insurance laws. Contact us today for a free consultation.