Sacramento, CA – Governor Gavin Newsom added his signature to the Protect California Drivers Act (SB 1107, Dodd) on Wednesday evening. SB 1107, which updates state law that established mandatory minimums for auto insurance policies in 1967, ensures California drivers are not forced to shoulder massive debt when they are the victims in a vehicle crash.
“SB 1107 goes a long way towards protecting California drivers – particularly low-income and fixed-income drivers with no financial safety net – from being crushed by debt when they are the victims of a vehicle crash,” said Craig M. Peters, President of CAOC. “CAOC is grateful to Senator Dodd for carrying this important legislation, to the legislature for its overwhelming support, and to Governor Newsom for correcting a decades-long injustice by signing this bill into law.”
The last time the legislature set liability minimums, over half a century ago, it determined they would be $15,000 for single injury or death; $30,000 for the injury or death of more than one person, and $5,000 for property damage.
Under the new law, auto insurers would be required to offer modernized, mandatory minimums of $30,000 / $60,000 / and $15,000 respectively. Once these new limits take effect in 2025, ten years later the limits will increase to $50,000 / $100,000 / $25,000 in 2035.
