What are the new car insurance laws in California 2025?
Asked by: Prof. Peyton Zboncak MD | Last update: May 8, 2025Score: 4.9/5 (31 votes)
Is car insurance going up in California in 2025?
There are plenty of reasons why this happens – more claims, inflation, higher repair costs – but in 2025, Californians saw an even larger increase than normal. That's because the state legislature raised the required minimum liability limits, and these new limits took effect Jan. 1.
What is the minimum car insurance coverage in California 2025?
Required Car Insurance in California
California's new insurance law went into effect on January 1, 2025, and will require drivers to carry auto insurance with the minimum limits of 30/60/15, or: $30,000 for bodily injury or death per person.
What is the new law for car insurance in California?
Understanding California's New Auto Insurance Requirements
Under the new law, the minimum liability limits will rise to 30/60/15. These numbers represent: $30,000 for bodily injury liability per person. $60,000 for bodily injury liability per accident.
What is the protect California drivers act?
California's 2025 auto insurance laws raise minimum liability coverage for drivers under the Protect California Drivers Act. The new minimums include $30,000 for bodily injury or death of one person, $60,000 for all persons, and $15,000 for property damage.
Understanding California's New Auto Insurance Laws for 2025 | The Shirvanian Law Firm
What is the CA good driver discount?
Good Driver Discount Policy
Because of Prop 103, California law requires insurance companies to offer a 20% discount to good drivers. You qualify for this Good Driver Discount policy in California if: You have been licensed to drive for the past 3 years.
What is the California Protection Rights Act?
The CPRA is a new consumer privacy law that protects individuals' data privacy rights. It was adopted via referendum by the state of California, meaning that it was voted into effect by the residents of California after being added to the ballot by a citizen-initiated measure. It went into effect on Jan 1, 2023.
What is the new insurance law 2025?
This law was enacted to increase the minimum liability requirement to ensure that drivers in financial hardships are protected and properly cared for in the event of a car accident. The new minimum liability requirements will be adjusted to the following: $30,000 for bodily injury or death per person.
What is the new car rule in California?
California's rules require 35% of vehicles in the 2026 model year to be a zero-emission model, rising to 68% by 2030. The state says the rule is crucial to meeting greenhouse gas emission reduction targets and cutting smog-forming pollutants.
How long can you drive without insurance after buying a car California?
You must have proof of insurance when driving your vehicle in the Golden State. But you have 30 days from the purchase of the vehicle to obtain a new insurance policy for a new (or new-to-you) car. A major caveat for this grace period is that you must already have automobile coverage for your previous vehicle.
Does car insurance go down after 65?
According to Progressive data analysis of customer policies, car insurance rates drop in your 50s and 60s before increasing at about age 75. For example, premiums for policyholders ages 55 through 64 dropped 10% but increased 4% for those over 75.
What is the cheapest car insurance in California?
At a glance: The cheapest car insurance in California
Geico offers the cheapest minimum coverage in California, with an average rate of $243 per year according to NerdWallet's January 2025 analysis.
What is the minimum full coverage auto insurance in California?
Here are the minimum liability insurance requirements (per California Insurance Code §11580.1b): $30,000 for injury/death to one person. $60,000 for injury/death to more than one person. $15,000 for damage to property.
What insurance company is leaving California?
From summer 2023 to early 2024, five other companies — AmGUARD, Falls Lake, The Hartford, Tokio Marine Insurance Co, and American National — stopped writing new home insurance policies in California, putting immense strain on the home insurance market. California homeowners have found themselves scrambling for coverage ...
What time of year is car insurance most expensive?
Buying car insurance on the day it's due is the costliest option. Car insurance renewals peak twice a year - March and September - as new car registrations are released.
Is auto insurance going up due to inflation?
Inflation cooled for much of the year before picking up this fall, with insurance prices for autos, homes and medical care contributing to a 15 percent of the increase in overall consumer prices, economists say. A double-digit spike in auto-insurance prices drove the vast majority of that rise.
What is the new law passed in California in 2025?
New 2025 California laws: Artificial intelligence, octopuses, cannabis cafes and more. New California laws in 2025 allow new entertainment zones, cannabis cafes and offer more protection against deepfakes and artificial intelligence. SACRAMENTO, Calif.
What is the 238 car rule?
The 20/3/8 car buying rule says you should put 20% down, pay off your car loan in three years (36 months), and spend no more than 8% of your pretax income on car payments.
What is the 25 year car law in California?
It stipulates that a vehicle must be at least 25 years old before it becomes eligible for import and deemed street-legal for use on American roads. And so, cars built under 25 years old can not legally be brought into the US.
Is car insurance going up in 2025?
Rising car insurance rates affected many Americans in 2024 and will likely continue to do so in 2025. These price increases are driven by factors such as increased claims, frequent natural disasters and changing insurance regulations.
What is the minimum car insurance in California 2025?
Effective January 1, 2025, the minimum required limits will be raised to $30K/$60k/$15K. You must buy liability coverage. Driving without insurance is illegal.
What is future in insurance?
Insurers are attempting to be tech-enabled, mastering data and its many sources in order to quickly assess and price risk, as well as serve customers when they need, learn about and purchase insurance. As they've seen in other industries, this is possible with a flexible technological base and strategic IT function.
What is the California consumer protection law?
The California Consumers Legal Remedies Act protects consumers from false advertising, fraud, and other unfair business practices. This law allows consumers to bring individual or class action lawsuits to recover damages and stop unlawful practices.
What is the LPS Act in California?
The LPS Act was enacted in 1967 and sought to “end the inappropriate, indefinite, and involuntary commitment of persons with mental health disorders”. The LPS Act resulted in many individuals being released from state hospitals to live in the community.
What is the California Guarantee Act?
In the event that a member insurer is found to be insolvent and is ordered to be liquidated by a court, the Guarantee Association Act enables the guarantee association to provide protection (up to the limits spelled out in the Act) to California residents who are holders of life and health insurance policies, and ...