Impacts of California Senate Bill 1107: The Protection California Drivers Act

California Senate Bill 1107, known as the Protect California Drivers Act, is an update to the state’s automobile insurance requirements, and modifies portions of the California Insurance Code. Signed into law in 2022 and effective as of January 1, 2025, this law increases the minimum automobile liability insurance drivers must have for the first time in more than half a century. Drivers now must now have least $30,000 in coverage for injury or death to one person, $60,000 for injury or death to more than one person, and $15,000 for property damage—replacing the $15,000/$30,000/$5,000 limits set in 1967. While these minimum coverages are still far too low to ensure that severely injured accident victims receive fair compensation, it will help improve compensatory recovery in smaller cases.

SB 1107 also includes phased increases over time to keep up with anticipated inflation and the rising costs associated with auto accidents. By January 1, 2035, the minimum coverage will rise again to $50,000/$100,000/$25,000. The bill is a small step in the right direction for addressing modern realities of vehicle repair costs and medical expenses, which have grown substantially since the last minimum coverage requirement was set over 50 years ago.

For California drivers, SB 1107 is both a reminder and an opportunity to review current insurance policies. Increased insurance protection can provide much-needed peace of mind in the event of a serious accident.  Responsible drivers should ensure that they are covered by insurance sufficient to protect their own assets as well as to redress injuries they might cause.

Just as importantly, drivers should take care to ensure that they are covered by sufficient underinsured and uninsured motorist insurance in the event they are injured by someone with minimum or otherwise limited coverage.  Thirty thousand dollars will not go far in redressing major injuries, so drivers must purchase these types of “first party insurance” to protect themselves and their families.