What SB1107 Means for Your Motorist Insurance Coverage
2025 is a year of change for many areas of life in California. As of January 2025, multiple laws will be going into effect, not least of which is SB 1107. This Senate bill will change how drivers are insured and how they can file claims if underinsured. Just now hearing about it? Read on to learn more! BD&J’s Ashkan Zamani has also provided an in-depth overview on Fox 5 San Diego if you have further questions.
What Was the California Motorist Insurance Minimum Before January 1, 2025?
First established in 1967, the minimum motorist insurance coverage for the average driver was only $15,000 liability coverage for bodily injury or death. Additionally, the old minimum outlined each driver should have $30,000 of coverage for injury or death of multiple people and only $5,000 of coverage for property damage. These minimums had not been increased since 1967, even as the cost of living skyrocketed in California.
How Does SB1107 Change California Motorist Insurance Minimums?
SB1107 has officially increased the minimum motorist coverage to $30,000 for bodily harm or death, $60,000 for injury or death of multiple people, and $15,000 for property damage. All motorists in California are expected to maintain this minimum liability coverage, or more. Unfortunately, this may also come with increases to insurance payments for many drivers.
Is It Against the Law if I Don’t Increase My Coverage?
Yes, it is against the law to not increase your coverage. However, insurance providers will automatically increase coverage minimums on your policy to cover SB1107’s new rules. Drivers do not have to take any action. However, it is prudent to check your policy in the new year to ensure your coverage was increased in accordance with state law.
Frequently Asked Questions
What happens to underinsured motorists in an accident?
Underinsured or uninsured motorists involved in accidents may be on the hook for damages and injuries caused by the accident, especially if they were at fault. Those with insurance policies are automatically enrolled in underinsured motorist coverage as well. These drivers can refuse the additional coverage, but they must sign a waiver.
Do insurance companies report if you’re underinsured to the police?
Anyone who has an insurance policy with a base address in California will automatically be increased to the new legal minimum coverage, but those that come from other states or are uninsured may be held accountable for being underinsured if they’re involved in a collision in California.
Can I still file a personal injury lawsuit if I’m underinsured?
Yes, you can still file a personal injury lawsuit if you’re underinsured. Your attorney can help you navigate the intricacies that come with being underinsured in a lawsuit.
Helping California Drivers Stay Safer
At BD&J, our goal is to help our clients and neighbors stay safer on the road. Whether you have questions about your injury or you need help understanding new regulations, our team is always here to help you 24/7. We’ve helped thousands of California drivers statewide claim millions in compensation. If you’ve been hurt in an accident, contact us today to schedule a free consultation.
