The Impact of New Auto Insurance Liability Minimums: State-by-State Analysis for 2025

In 2025, several states have significantly increased their minimum auto insurance liability requirements, affecting millions of drivers and causing noticeable premium increases, especially for those who previously carried only the minimum coverage.

• The numbers represent coverage limits in thousands of dollars:

  •  Max per person for bodily injury or death

  •  Max per accident for bodily injury or death of multiple people

  •  Max for property damage per accident

For example, California’s new minimum of 30/60/15 means a driver must have at least $30,000 per person bodily injury coverage, $60,000 total per accident, and $15,000 for property damage.

• 
  Drivers who previously purchased only state minimum coverage will likely see significant premium increases due to higher liability limits. Those with policies above the old minimums may see smaller or no changes.

• 
  Insurers will automatically adjust policies to comply with new state minimums at renewal. Drivers do not need to take action but should expect higher premiums.

• Uninsured/Underinsured Motorist (UM/UIM) Coverage:
  In many states, UM/UIM coverage minimums are required to match the increased bodily injury liability limits, adding to the cost.

• 
  The increases aim to better protect accident victims from medical and property costs, reflecting inflation and rising claim expenses since many states last updated minimums decades ago.

• 
  California’s law includes a scheduled increase in 2035, signaling ongoing upward pressure on minimum coverage requirements.

•  Check if your current coverage meets the new minimums.

•  Budget for increased insurance costs if you carry minimum coverage.

•  Compare quotes from multiple insurers to find the best rates under new requirements.

•  Minimum coverage may still be insufficient for full protection; consider purchasing higher limits or umbrella policies.

•  Bundling, safe driving, and usage-based programs may help offset cost increases.

 the 2025 increases in auto insurance liability minimums in California, North Carolina, Utah, and Virginia mark a significant shift toward stronger financial protection for drivers and accident victims. While these changes will raise premiums for many, especially those with minimum coverage, they reflect the need to keep pace with rising medical and repair costs. Drivers should proactively review and adjust their policies to ensure compliance and adequate protection.