What are California's required minimum auto insurance limits in 2026?

California requires drivers to carry at least $30,000 in bodily injury liability per person, $60,000 per accident, and $15,000 in property damage liability. These limits replaced the prior $15,000/$30,000/$5,000 structure in place since 1967. The California Department of Insurance confirmed the new statutory floor, effective January 1, 2025, under Senate Bill 1107.

Why did California raise its minimum auto insurance coverage requirements?

The California legislature increased minimum liability limits to reflect decades of medical cost and property repair inflation. A bodily injury judgment above the old $15,000 per-person limit left the at-fault driver personally liable for the remainder. The Insurance Information Institute has documented the long-term rise in average claim severity as a key driver of coverage limit reform across multiple states.

Can insurers raise my rate because of the new minimums?

Only if the CDI approves the change. Under Proposition 103, any carrier rate adjustment must be filed with the CDI and justified on actuarial grounds before it takes effect. Consumers can request a public hearing to challenge a proposed rate during the 60-day review window. The commissioner retains authority to reduce or reject filings the department finds excessive.

Does my credit score affect my California auto insurance premium?

No. California's Proposition 103 prohibits personal auto insurers from using credit history or credit scores as a rating factor. Your premium is based on driving-related criteria, including your driving record, annual miles driven, and years of driving experience. This prohibition applies to all personal auto policies issued in California, regardless of carrier.

California 2026 Auto Coverage Law Raises Premiums for State Farm, GEICO

California drivers purchasing or renewing auto insurance in 2026 are absorbing the full-year cost impact of the state's updated minimum liability coverage requirements, which took effect January 1, 2025. The California Department of Insurance confirmed the new mandatory floor: $30,000 in bodily injury coverage per person, $60,000 per accident, and $15,000 for property damage, doubling the limits drivers had carried for nearly six decades under the old 15/30/5 structure.

The change, the first revision to California's minimum auto liability limits since 1967, compelled insurers to recalculate base policy costs and file updated rates with the CDI under the Proposition 103 prior-approval process. Major carriers, including State Farm and GEICO, have submitted updated filings reflecting the new statutory minimum, as required by California Insurance Code Section 11580.1b. The Insurance Information Institute notes that higher mandated limits increase insurer exposure per claim, which actuarial models translate directly into higher base premiums across the market.

How Are California's New Minimum Coverage Rules Changing What Drivers Pay?

Drivers who held the old 15/30/5 minimum policy and have renewed since January 2025 are now paying for a 30/60/15 policy, a change that alters the risk pool each insurer must price. The Insurance Information Institute has documented how mandatory coverage floor increases affect base premium calculations across state markets. Carriers cannot simply absorb the additional liability exposure; the actuarial basis of each policy must reflect the statutory minimums to remain legally compliant and financially solvent.

Progressive, Allstate, and Mercury have each filed rate adjustments with the CDI following SB 1107's effective date. Under Proposition 103, every rate filing undergoes CDI review. The department has 60 days to act on a filing, and consumers or intervenors may request a public hearing to contest rates the department has not yet accepted or denied. Wawanesa, CSAA, and Auto Club of Southern California have also updated their base policy pricing to reflect the 30/60/15 floor.

What Role Does Proposition 103 Play in Keeping Rate Increases in Check?

Under Proposition 103, which California voters approved in 1988, all personal auto insurance rate changes require prior CDI approval before they take effect. The Insurance Commissioner holds authority to approve, reduce, or reject any proposed rate change. If a rate is deemed excessive, the commissioner may order a rollback and direct the carrier to issue refunds to policyholders.

Proposition 103 also prohibits California auto insurers from using a driver's credit history as a rating factor. Carriers must base personal auto rates on driving-related criteria: miles driven, driving record, and years of experience. This consumer protection distinguishes California's rate environment from most other states, where credit scoring plays a routine role in pricing.

What Should California Drivers Do Before Their Next Renewal?

Drivers renewing policies in 2026 should examine their current declarations page to confirm they carry the updated 30/60/15 minimums. A policy issued before January 2025 and not yet renewed may still reflect the old 15/30/5 limits if the renewal cycle has not triggered a new declarations page. The CDI advises drivers to contact their insurer directly to confirm their current coverage levels.

Comparing renewal quotes across multiple carriers is the most reliable path to managing costs when mandated limits change. The CDI publishes an auto insurance comparison guide listing major carriers alongside their complaint ratios, which helps drivers evaluate service quality together with price. Los Angeles, San Diego, and San Francisco drivers may find meaningful variation in carrier pricing for the 30/60/15 minimum tier.