If you recently renewed your auto policy and found a bigger bill, you may wonder did car insurance rates go up in California? The answer is yes. Several factors drive this increase, but a recent change in state law plays a central role. On January 1, 2025, California’s Senate Bill 1107 took effect and raised the minimum required liability limits for auto insurance.
That shift forces insurers to carry more risk in every policy, which in turn pushes many premiums upward. At the same time, inflation, repair cost escalation, and rising medical expenses add fuel to the fire. Deldar Legal breaks down why rates have climbed, how much they may rise, and what you can do to protect yourself.
Why Senate Bill 1107 Matters
Senate Bill 1107, also called the, Protect California Drivers Act, raises California’s minimum auto liability limits for the first time in decades. Under the old rules, drivers needed minimum liability coverage of $15,000 for injury to one person, $30,000 for injury to more than one person, and $5,000 for property damage (commonly known as 15/30/5).
SB 1107 increases those minimums to $30,000 per injured person, $60,000 per accident, and $15,000 for property damage. Because insurers now must write policies that cover higher limits even for bodily injury claims formerly under the old minimums, they face greater exposure. The insurance companies made the decision to pass that cost onto policyholders. The California Department of Insurance expects those increases to show up in your premiums.
Other Factors Driving Premium Increases
State laws are only part of the equation. For example, when roadways have a larger number of uninsured drivers, insurance companies suffer losses on those claims. The Insurance Research Council (IRC) reports 15% of motorists in the U.S. are uninsured. While SB 1107 plays a key role, other pressures push rates upward as well:
- Inflation and Medical Costs – Hospital bills, therapy, diagnostics and pharmaceuticals have all surged in price.
- Rising Auto Repair Prices – Modern vehicles include complex electronics, sensors, and safety features, which raise repair costs.
- Prevalence of Car Accidents – More accidents, more serious injuries, and more property damage all raise the overall cost burden for insurers.
- Uninsured and Underinsured Drivers – When at-fault drivers lack sufficient insurance, insurers must absorb more losses, which impacts premiums across the board.
- Supply Chain and Parts – Delays or shortages in vehicle parts inflate repair times and prices.
Together these elements amplify the impact of the new liability baseline, making rate increases more pronounced. This ripple effect creates insurance rate increases for everyone. Did car insurance rates go up in California? Yes, and a lot of people across the state have noticed.
How Much Can Your Premium Rise?
Because insurers must cover higher minimum liability exposure, many policyholders will see meaningful increases. In some California markets, increases fluctuate between 10% and 30%. Again, this is simply a projection because, as we all know, auto insurance rates depend on several personal driving factors such as:
- At-Fault Accidents – Causing one or more accidents is one of the most direct reasons your insurance rate can increase. Insurers view you as a higher-risk driver after any at-fault claim.
- Traffic Violations – Speeding tickets, running red lights, or other moving violations signal unsafe driving habits, which can lead to higher premiums.
- DUI Convictions – Some insurers will drop your policy entirely after a DUI. If they don’t your premiums will surely rise.
- Adding a Teenage Driver – Young or newly licensed drivers represents higher risk because of limited driving experience, which can raise family policy costs.
- Lapses in Coverage – Letting your policy expire or canceling it for even a short time can result in higher rates when you restart coverage, as insurers view lapses as signs of financial or driving instability.
- Vehicle Type & Usage – Driving a high-performance vehicle or using your car for rideshare services like Uber or Lyft can lead to higher premiums due to elevated accident risk.
- Driving Location – Moving to an area with heavier traffic, higher theft rates, or more reported collisions can raise your insurance even if your record is clean.
While statewide legislation such as Senate Bill 1107 affects everyone, personal driving behavior remains a major influence on what you pay. Insurance companies weigh both statewide requirements and your individual risk profile when determining rates. By maintaining a clean record, keeping continuous coverage, and driving responsibly, you can offset some of the increases linked to California’s new insurance laws.
What This Means for Injury Claims
When many drivers ask did car insurance rates go up in California, the answer is clear: yes. Now, what does that mean for those injured in accidents? Higher liability minimums will benefit those who suffer losses in accidents. With more required coverage, victims now have a higher floor of protection to recover damages without exhausting insurance too soon. That said, many serious injury or property damage cases exceed those amounts. Fortunately, your lawyer can seek compensation above these limits.
Call Us Today
At Deldar Legal, we’re more than just attorneys, we’re your partners in recovery. If you’ve suffered an injury due to someone else’s negligence, you deserve a top-rated personal injury attorney in California who will fight for your rights and help you rebuild your life. From the moment you contact us, we handle everything, from medical appointments and transportation to insurance negotiations and legal paperwork, so you can focus on healing.
Our experienced team represents clients across a wide range of personal injury cases, including:
- Car, truck, and motorcycle accidents
- Uber and Lyft rideshare accidents
- Pedestrian and bicycle accidents
- Slip-and-fall and premises liability claims
- Dog bites and animal attacks
- Traumatic brain injuries, spinal cord damage, and other catastrophic injuries
- Wrongful death of a loved one
Deldar Legal is here to help. We offer free consultations and work on a no win, no fee basis, so there’s no risk in reaching out.
Call us today at (844) 335-3271 or contact us to speak with an experienced California injury lawyer. Let Deldar Legal fight for the justice and compensation you deserve.