California Minimum Auto Insurance Levels Have Increased

If you have been injured in a car accident that was someone else’s fault, you may be entitled to significant financial compensation. The Riverside car accident lawyers at Heiting & Irwin can represent you in the legal process with the aim of securing top dollar for your car accident case.

California has (thankfully and finally) recently raised its minimum levels of car insurance coverage that motorists must carry. It could mean that you may be able to receive more compensation for your injuries.

Call the Riverside car accident attorneys at Heiting & Irwin to schedule a free initial consultation. We will learn more about your case and help you plot a legal path forward.

Car Insurance Minimum Coverage Has Gone Up for the First Time in Five Decades

Inflation has had many impacts on drivers throughout California. Not only are they paying more for their car insurance policies, but they may also need to spend more money on medical care when they have been injured in a car accident. Further, since wages are higher, injured drivers may miss out on more money from work. With that in mind, A new California law finally increased the minimum level of car insurance coverage that a driver needs to purchase to get behind the wheel.

The prior limits date all the way back to 1974. There has been substantial inflation since then, including the spike in recent years. $1 from back then is worth nearly $6.50 today. Therefore, it was imperative for the state to do something to better protect drivers from bearing the costs of someone else’s decision to pay for the least amount of car insurance possible. Even so,

How the Law Affects Car Insurance Coverage

The old minimum limits for California auto insurance policies were as follows:

• $15,000 per person for bodily injury or death to a total of
• $30,000 per accident for bodily injury or death (all parties)
• $5,000 for property damage

Everyone knows that these minimum levels of coverage do very little to pay injured drivers and their passengers when the other motorist was at fault and there are serious injuries. Even a seemingly simple and quick visit to the emergency room could almost exhaust the minimum coverage levels without having money to pay for anything else.

Accordingly, the new levels of minimum coverage have been raised. They are:

• $30,000 per person for bodily injury or death to a total of
• $60,000 per accident for bodily injury or death (all parties)
• $15,000 for property damage

Insurance Premiums Will Increase Going Forward

Knowing insurance companies, California drivers need to be prepared to pay higher premiums for their coverage. Motorists also need to be prepared for the possibility that they could be in an accident with an uninsured driver. Typically, hikes in minimum coverage levels mean that more drivers may break the law and not purchase insurance because of the increased cost. As a result, drivers should always increase the amount of underinsured and uninsured motorist coverage that they have to maximum levels in case there is a serious car accident injury. The same reason why California increased the insurance requirements also means that your accident damages would be higher than they were in the past. 

Even though auto insurance minimum coverage levels have increased, even the new levels are not a tremendous amount of money. You may be in an accident with a driver who tried to economize on their car insurance. Premiums for auto insurance policies have skyrocketed in recent years, and more drivers are likely to spend as little as possible on their coverage, especially given the new minimum levels. Uninsured and underinsured coverages are especially important, and their cost is usually very reasonable.

You may have car accident damages that may not be fully covered by the other party’s insurance policy. In that event, you would file a claim against your underinsured motorist coverage. We would still need to prove fault for the accident, as well as prove the claim and damages.

Contact a Riverside Car Accident Law Firm Today

If you have been involved in a motor vehicle crash, reach out to the experienced Riverside car accident lawyers at Heiting & Irwin. You can schedule a free initial consultation with one of our attorneys by visiting our website or by calling us today at (951) 682-6400. We have recovered over $500 million for our clients, and we can fight for you.