The Impact of California’s 2025 Auto Insurance Limit Changes: What Modesto Drivers Need to Know
Starting January 1, 2025, major changes to California’s auto insurance laws will go into effect—and they could significantly impact how much compensation car accident victims are entitled to receive. If you've been involved in a crash, these updates may drastically shift how your case is handled. At Bojat Law Group, our experienced car accident lawyer Modesto is already preparing for these changes to help protect our clients' rights under the new rules.
What Changed Under SB 1107?
California Senate Bill 1107 (SB 1107), signed into law in 2022, increases the minimum auto insurance liability limits for the first time in over 50 years. The updated coverage minimums are:
● Bodily Injury (BI) Liability:
○ Old limit: $15,000 per person / $30,000 per accident
○ New limit (2025): $30,000 per person / $60,000 per accident
● Property Damage (PD) Liability:
○ Old limit: $5,000
○ New limit (2025): $15,000
These updated limits aim to reflect modern medical costs, vehicle repair expenses, and general inflation.
Why This Matters for Modesto Drivers
Many accident victims in Modesto are shocked to find that the at-fault driver's insurance coverage doesn’t come close to covering the actual costs of their injuries and losses. Under the old limits, a serious injury could result in hundreds of thousands in bills, with only $15,000 of coverage available per injured party.
With SB 1107, Modesto drivers may now be entitled to more meaningful compensation—but only if the at-fault party is properly insured. These higher limits could be critical in:
● Covering ER visits, surgeries, and long-term treatment
● Replacing lost wages for injured workers
● Paying for property damage to multiple vehicles
● Compensating for pain, suffering, and emotional distress
Practical Examples of the Impact
Let’s look at two hypothetical car crashes in Modesto, one under the old law and one under the new:
Scenario 1 (2024 Limits)
A pedestrian is hit by a driver and suffers a broken leg requiring surgery. Medical bills total $50,000. The driver’s policy only covers $15,000. The victim must pursue the rest through their own insurance or out-of-pocket.
Scenario 2 (2025 Limits)
Same accident, but the new minimum policy now covers $30,000. This gives the victim double the available compensation without having to fight their own insurer or sue the at-fault party personally.
Are These New Limits Automatically Applied?
Yes. As of January 1, 2025, all newly issued or renewed auto insurance policies in California must include these new minimum limits. However, anyone involved in a crash before that date is still subject to the old, lower caps.
So if you’re injured in a Modesto car accident in December 2024, you may still only be entitled to $15,000 per person.
What If the At-Fault Driver Has No Insurance?
California’s new limits do not apply if the other driver is uninsured or underinsured. That’s why it’s more important than ever to review your Uninsured/Underinsured Motorist Coverage (UM/UIM). At Bojat Law Group, we advise Modesto residents to carry sufficient UM/UIM coverage to protect themselves from underinsured drivers who may not yet be compliant in early 2025.
How Will Insurance Companies Respond?
Insurance carriers may:
● Raise premiums slightly to adjust for increased risk
● Attempt to settle claims quickly before 2025 policies are in place
● Deny, delay, or undervalue new claims to protect profits
Don’t face these tactics alone. An experienced car accident lawyer in Modesto can hold insurers accountable and ensure that you aren’t pressured into accepting less than you deserve.
How Bojat Law Group Can Help
At Bojat Law Group, we’ve helped hundreds of clients navigate car accident claims throughout Modesto and across Stanislaus County. With the 2025 reforms looming, we are:
● Reviewing current and pending claims for strategic timing
● Analyzing settlement offers under both old and new policies
● Aggressively pursuing the maximum compensation available
We understand how these legal shifts affect your bottom line—and we fight to make sure the law works in your favor, not the insurance company’s.
Call Car Accident Lawyer Modesto at Bojat Law Group
If you've been injured in a car accident, or simply want to understand how California’s 2025 insurance changes affect your current policy, don’t wait. The clock is ticking, and the difference between a 2024 and 2025 claim could mean tens of thousands of dollars.
Call Bojat Law Group today at (818) 877-4878 for a free case evaluation. Our dedicated car accident lawyer Modesto is here to guide you through the legal landscape and fight for every dollar you deserve.
