California Raises Auto Liability Minimums Under AB 1107 in 2026

California drivers renewing auto insurance policies through 2026 are the first cohort to complete a full policy cycle under the state's doubled minimum liability limits, enacted under Assembly Bill 1107 with the first phase taking effect January 1, 2025, according to the California Department of Insurance. The property damage floor tripled at the same time, rising from $5,000 to $15,000, ending a threshold the state had maintained since 1967.

The law, signed by Governor Gavin Newsom in 2022, phases in two increases. The first took effect January 1, 2025; a second step to $50,000 per person, $100,000 per accident, and $25,000 in property damage is scheduled for January 1, 2035. Drivers who previously held a 15/30/5 minimum policy converted to the new 30/60/15 floor at their next renewal date, per CDI guidance.

Why did California keep the same minimum limits for nearly six decades?

California's 15/30/5 minimum had been in place since 1967, a period that saw vehicle repair costs, medical inflation, and jury awards grow substantially. The Insurance Information Institute has noted that California's pre-AB 1107 minimums ranked among the lowest in the nation. A collision in a California city that causes moderate vehicle damage or a minor injury can generate repair and treatment bills that exceed the former $5,000 property damage floor, leaving the at-fault driver personally liable for any amount above the policy limit.

Supporters of the legislation cited research from the Insurance Research Council showing that inadequate liability coverage leaves both the at-fault driver and injured parties financially exposed when claim costs exceed the policy floor. By 2022, the $5,000 property damage floor was widely regarded by consumer advocates and industry groups as insufficient for the California market, where vehicle repair costs in metropolitan areas routinely exceed that figure for moderate collision damage.

What does the 30/60/15 floor mean for a California driver renewing in 2026?

Any auto insurance policy issued or renewed in California after January 1, 2025, must carry at least $30,000 in bodily injury liability per person, $60,000 per accident, and $15,000 in property damage liability. Drivers who previously purchased state-minimum coverage will see a higher base premium at renewal because the underlying coverage obligation has doubled for bodily injury and tripled for property damage.

The California Department of Insurance has stated that insurers are required to issue or renew policies that meet or exceed the new floor. Consumers who held the old 15/30/5 minimum and did not select higher limits should verify that their renewal documents show the 30/60/15 structure. Policies written at exactly the former 15/30/5 level could not be renewed on those terms after December 31, 2024.

Which carriers write minimum-limits auto policies in California?

California's admitted auto insurance market includes carriers across the pricing spectrum for drivers seeking state-minimum or near-minimum coverage. CSAA Insurance Group, Mercury Insurance, Progressive, and Alliance United are among the carriers operating in California's standard and nonstandard personal auto segments, offering policies priced to the new 30/60/15 floor. The CDI's Rate Comparison Tool, updated for the new minimums, lets California consumers compare benchmark premiums from admitted carriers side by side.

Under Proposition 103, insurers must file and receive CDI approval before implementing rate changes. The AB 1107 limit increase led carriers to submit rate adjustment filings reflecting higher minimum exposure, a process overseen by the CDI. The Insurance Information Institute has noted that higher mandatory minimums increase expected per-policy claim exposure, a factor that flows through filed rates.

Frequently asked questions

How do California's new minimum limits compare to other states?

The 30/60/15 floor California adopted in 2025 brings the state into alignment with the middle tier of state minimum requirements nationwide, according to the Insurance Information Institute. Several states require bodily injury limits at or above $25,000 per person, while others still fall below California's new floor. The III notes that even at the 30/60/15 level, drivers involved in a serious metropolitan collision may find the minimum limits insufficient to cover total costs, making higher voluntary limits worth considering.

Will the higher minimums raise my auto insurance premium?

A policy written to the 30/60/15 minimum carries a higher premium than the same policy written to the former 15/30/5 minimum, because the insurer's maximum exposure per claim has increased. The CDI reviews rate filings to ensure increases are actuarially justified under Proposition 103. Drivers who already carried voluntary limits above the new floor, such as 100/300/100, are not directly affected by the minimum change, as their policies already exceeded the AB 1107 requirement.

What happens on January 1, 2035?

Assembly Bill 1107 includes a second phase effective January 1, 2035. On that date, California's minimum bodily injury liability increases to $50,000 per person and $100,000 per accident, while the property damage minimum rises to $25,000. The California Department of Insurance will oversee the transition, and insurers are expected to submit rate filings reflecting the higher floor ahead of that date.

Can I be penalized for carrying the old 15/30/5 limits after January 1, 2025?

A policy renewed after January 1, 2025, that does not meet the 30/60/15 floor is not compliant with California's financial responsibility law, according to the CDI. Insurers were required to update policies at renewal. Drivers who let a policy lapse and then purchased a new policy are also subject to the new minimums. Operating a vehicle without compliant coverage can result in fines and license suspension under California Vehicle Code.