New Year Means New Changes for Insurance, Make Sure You are Protected
As we start the new year, it’s the perfect time to plan and review your insurance needs. Your coverage from last year might not fully align with where you are today. The California Department of Insurance has resources for all lines of insurance, including auto, earthquake, flood, pet, renter, to help you properly prepare.
Changes to CA Auto Insurance Requirements are Here:
Understanding the basics of auto insurance—what coverage you have, what it protects against, and how much you need—is essential for making informed decisions. This is especially important with new changes to California’s mandatory liability coverage limits taking effect in 2025.
What’s Changing?
Beginning January 1,2025, as auto insurance policies come up for renewal throughout the year, all standard auto insurance policies in California will have higher minimum liability limits:
- $30,000 for bodily injury or death per person (up from $15,000)
- $60,000 for bodily injury or death per accident (up from $30,000)
- $15,000 for property damage per accident (up from $5,000)
These changes are designed to provide better financial protection in the event of an accident, and if you don’t currently have this coverage, this may result in higher costs when your policy comes up for renewal.
Don’t Drive Without Insurance, the CLCA Program is an Affordable Alternative:
The California Low Cost Auto (CLCA) Insurance Program offers lower-cost coverage designed for income-eligible drivers. CLCA’s limits will remain unchanged, making it an attractive option for those affected by rising premiums.
CLCA Coverage Limits
The CLCA program was designed to provide basic liability coverage to meet legal requirements:
- Up to $10,000 per person for bodily injury or death
- Up to $20,000 per accident for bodily injury or death
- Up to $3,000 for property damage
Who Can Qualify for CLCA?
To be eligible, you must:
- Have a valid California driver’s license
- Meet income eligibility guidelines
- Own a vehicle valued at $25,000 or less
- Be at least 16 years old (Applicants under 18 must be legally emancipated)
- Have a good driving record or be a new driver
The Importance of Staying Informed
Knowing your insurance basics—coverage limits, deductibles, and eligibility requirements—can help you make the best financial and legal decisions. Programs like CLCA may be critical for maintaining affordable and adequate coverage as costs rise.
Take Action Now
Start the year off right by reviewing your auto insurance policy and exploring your options. If higher premiums on standard policies are a concern, the CLCA program can provide an affordable alternative. Learn more about the California Low Cost Auto Insurance Program by visiting www.mylowcostauto.com or calling 866-602-8861.
The California Department of Insurance can help keep you informed to ensure that you’re properly protected against life’s uncertainties.
Stay informed, stay insured, and stay protected.
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
