Important Update: Increased Insurance Policy Limits to Better Protect You
We want to take this opportunity to provide you with some extremely important information regarding a new law that was recently passed in California raising the minimum amount of car insurance that drivers in California are required to have. This law does not go into effect until January of 2025 so there is some time for everyone to prepare—and to make sure they are in compliance with the new requirements. This new law will affect every driver in the state of California.
Currently, drivers of private vehicles are required to have a minimum of $15,000.00 in bodily injury or death coverage per person; $30,000.00 in coverage per accident; and $5,000.00 in coverage for property damage. These limits have been in place since 1967—and have not changed for 57 years. However, the new law that is called the Protect California Drivers Act raises these limits and requires every driver to have a minimum of $30,000.00 for bodily injury or death coverage per person; $60,000.00 in coverage per accident; and $15,000 in coverage for property damage.
Importantly, the Protect California Drivers Act raises limits again in another 10 years. In 2035, the law will require limits of $50,000.00 for bodily injury or death coverage per person; $100,000 in coverage per accident; and $25,000.00 in coverage for property damage.
This is extremely good news for those who are injured in a car accident. It is impossible to count the number of times in recent years where we have been forced to take the $15,000.00 policy limit on cases that are worth dramatically more money. We have even had wrongful death cases that could have been worth millions of dollars wherein there was no choice but to settle for the $15,000.00 as there were no other means of recovery. Consequently, this is good news.
However, it is equally clear that insurance companies will charge more money for this increased coverage. If you currently have the minimum insurance policy limit of $15,000.00, it is our recommendation that you begin to prepare for the new requirements—as the year will go by faster than we all think. We recommend that you speak with your insurance carrier as soon as possible to inquire about this change and try and obtain estimates on the increased cost of insurance.
In the meantime, if you have any questions regarding this new law, please don’t hesitate to reach out to us and we will be more than happy to speak with you about it.