A new law in California, Senate Bill 1107, mandates an increase in the minimum limits of motor vehicle liability insurance coverage. This change affects private passenger autos, commercial businesses, and recreational vehicles. The law will be implemented starting January 1, 2025.

The updated legislation raises the minimum liability limits to 30,000/60,000/15,000. This adjustment means $30,000 is the maximum coverage for bodily injury liability per person in one accident; $60,000 is the maximum for all persons injured in one accident; and $15,000 is the maximum for property damage liability in a single accident.

Existing policies with lower limits will automatically renew at these new minimums on or after January 1, 2025. There may be an impact on premiums due to this change. However, no action is required from policyholders as their policies will adjust automatically.

The law was initially set into motion in 2022 after its passage and addresses a gap of over 56 years since the last adjustment of these limits. The revision aims to offer better protection for drivers given that associated costs like medical expenses and repairs have significantly increased over time.

State Farm advises that while no immediate action is necessary from customers, it might be beneficial to contact their agents to review current coverages and explore potential discounts.

The changes will take effect at the next policy renewal after January 1, 2025.