California is increasing its minimum auto insurance requirements for the first time in over 50 years. The changes, which went into effect on January 1, 2023, are aimed at providing greater financial protection for drivers involved in accidents.
For the first time in over five decades California is increasing its minimum auto insurance requirements this year, but the change isn't expected to burn a hole in every driver's wallet. In 2022, Gov. Gavin Newsom signed Senate Bill 1107, also known as the Protect California Drivers Act, into law which increases the minimum auto liability limits. However, implementation of the law didn't go into effect until the start of this month.
California law requires drivers to have minimum liability insurance that helps pay for injuries or damage that you cause to others. Before Protect California Drivers Act went into effect, the following minimum liability requirements were: $15,000 for injuries or death to one person.$30,000 for injuries or death to multiple people in one accident. $5,000 for property damage.After the law went into effect Jan. 1, the minimum requirements increased too: $30,000 for injuries or death to one person. $60,000 for injuries or death to multiple people in one accident.$15,000 for property damage.Insurance Commissioner Ricardo Lara previously said people expect 'to be made whole by their insurance after a traffic accident, but I believe the current minimum coverage levels often left California's drivers at risk of being one accident away from financial ruin, especially those from our most vulnerable communities.' Experts argued that the previous requirements for minimum liability limits were not enough to cover most claims. That's because the cost of repairs and medical expenses after an accident have increased over time and exponentially so after the pandemic, said Rex Frazier, president of the Personal Insurance Federation of California. It's also wasn't keeping up with rising costs because the minimum limits were set in 1967, according to the American Agents Allianc
Auto Insurance California Minimum Liability Protect California Drivers Act Financial Protection
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Missouri companies sue to stop a law that raises minimum wage and requires paid sick leaveMissouri business groups have filed a lawsuit to try to stop a voter-approved law that will raise the state’s minimum wage and require employers to give workers paid sick leave.
Read more »
Los Angeles City Council Raises Minimum Wage for Hotel and Airport Workers to $30 an HourThe Los Angeles City Council voted to increase the minimum wage for hotel and airport workers to $30 an hour by 2028. While supporters argue this will raise living standards, critics warn it will lead to job losses and economic hardship.
Read more »
Turkey Raises Minimum Wage by 30% for 2025Turkish President Erdogan announced a significant 30% increase in the net monthly minimum wage for 2025. The hike, affecting 9 million workers, is expected to fuel inflation despite a recent decline in the annual inflation rate.
Read more »
Alaska Minimum Wage Increase to Boost Economy, but Raises Concerns for BusinessesAlaska's new minimum wage law will increase pay for many workers, but it also raises concerns about higher costs for businesses and potential impacts on employee hours and prices for consumers.
Read more »
Seattle Raises Minimum Wage to $20.76 per Hour, Ends Tip Credit for Small BusinessesSeattle takes steps to address wage fairness by increasing minimum wage and eliminating a temporary tip credit for small businesses.
Read more »
Washington State Raises Minimum Wage and Enacts New Worker ProtectionsThe minimum wage in Washington state has increased to $16.66, while new laws provide enhanced protections for gig workers and expand sick leave benefits.
Read more »