The 2025 update to California’s car accident laws centers on higher insurance liability minimums under Senate Bill 1107. While comparative negligence, reporting rules, and claim procedures remain unchanged, the new limits reflect the rising costs of modern collisions and the state’s goal of ensuring fairer compensation.
The 2025 Insurance Law Update
The most notable change to California’s car accident laws is the increase in the state’s minimum required liability insurance coverage for all drivers. The new minimums, effective January 1, 2025, are:
$30,000 for bodily injury or death per person
$60,000 for bodily injury or death per accident
$15,000 for property damage per accident
Before this change, California required only 15/30/5 coverage. Those older limits often failed to cover the actual costs of medical treatment and vehicle repairs after serious accidents. The new 30/60/15 limits provide stronger protection for both accident victims and policyholders, reducing the financial risk that follows a severe crash.
California is a Fault-Based State
California law requires all drivers to operate their vehicles safely and maintain financial responsibility in case of an accident. When collisions happen, fault determines who pays for injuries and property damage. Because California is a fault state, the driver who causes the accident is financially responsible for resulting losses.
California’s Pure Comparative Negligence Law
California continues to apply pure comparative negligence. This rule allows an injured person to recover damages even if they share some blame. The recovery is reduced in proportion to their percentage of fault. For instance, if a driver is 20 percent responsible, they can still recover 80 percent of their damages.
Reporting and Claims Procedures
Drivers involved in any collision resulting in injury, death, or significant property damage must:
Report the accident to law enforcement within 24 hours.
File a report with the Department of Motor Vehicles within 10 days if injuries or major property damage occurred.
Notify their insurance provider as soon as possible.
Failing to follow these requirements can result in penalties and delays in processing a claim.
California’s Time Limit on Car Accident Claims
Victims generally have two years from the date of the accident to file a personal injury lawsuit. Failing to act within that time can result in losing the right to recover compensation.
FAQs On California Car Accident Laws (2025)
Q: Do I need to update my car insurance liability coverage?
A: Most insurers will automatically adjust your policy to meet the new limits at renewal, but you should still confirm that your coverage complies to avoid penalties or uncovered liability.
Q: What should I do immediately after a car accident?
A: Call 911 if anyone is injured, move vehicles to safety if possible, exchange insurance information, and document the scene with photos. Report the crash to law enforcement and your insurer promptly.
Q: How do I know who is at fault?
A: Fault depends on evidence such as police reports, witness statements, and accident scene details. California law uses comparative negligence, meaning multiple parties can share responsibility.
Q: What if the other driver leaves the scene?
A: Leaving the scene of an accident is a hit-and-run, a criminal offense in California. Report the incident to law enforcement immediately and notify your insurer. Uninsured motorist coverage may apply.
Contact a California Car Accident Lawyer
If you’ve been hurt in a crash or have questions about the 2025 car accident law changes, an experienced attorney can help. A lawyer can explain your rights, deal with the insurance company, and make sure you get the compensation you deserve. Contact a California car accident lawyer today for a free consultation at (559) 447-9000.
