Effective January 1st, a new California law (SB1107) increased the minimum liability coverage for car insurance, impacting many of our clients. The law doubles the previous limits:
Bodily Injury Liability: From $15,000 per person and $30,000 per accident to $30,000 per person and $60,000 per accident..
Property Damage Liability: From $5,000 to $15,000.
The downside of this change is that it also means higher premiums for those who had minimum liability limits. We're seeing average increases of 10-15%, which can be difficult for customers who have already experienced more than 50% average increase in their insurance costs over the last two years.
However, these changes were needed. The previous minimums were updated in 1967 and no longer reflect today's medical and vehicle repair costs. In fact, California was one of the last states to update their liability limits. And there are benefits for all of us. For example, if you cause an accident, you'll have significantly more coverage to help pay for the resulting damages, avoiding out-of-pocket expenses or lawsuits. Or if you are hit by someone else, you are likely to have more coverage available to pay for your own costs.
We encourage any customer that may be struggling with their monthly payments to reach out to us so we can review your options. We would be glad to make sure all discounts are being applied and even quote you with other companies or coverage options.
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