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California’s new auto insurance laws are finally here. California SB 117, commonly known as the Protect California Drivers Act, is a much-needed update to the minimum insurance coverage that drivers can pursue should they get into an accident.
This new law is a big win for all of us, and especially for folks who are injured in car crashes. Still, the law still deserves a closer look to break down how these new measures affect the cost of premiums and play into the insurance market as a whole, especially when it comes to homeowners’, renters’, and umbrella policies.
What Does The “Protect California Drivers Act” Say?
The Protect California Drivers Act mandates that car insurance providers must raise their minimum coverage for all policyholders in the state. This is the first time these minimums have been raised since 1967. Previously, drivers in California were only entitled to a minimum of $15,000 for injury or death to a single driver or passenger, $30,000 to multiple people, and $5,000 for damage to the vehicle or property. Under the new protections, drivers are now entitled to a minimum of:
- $30,000 for the injury or death of one driver or passenger
- $60,000 for two or more people
- $15,000 for property damage
The new law also anticipates a higher cost of living in the future. By 2035, these minimums will be raised again to:
- $50,000 for one person
- $100,000 for multiple people
- $25,000 for property damage
What Effect Will This Have on Accident Victims?
For victims of accidents in California, the benefits are clear. With higher mandatory minimums, there’s now a much better chance that your settlement will actually cover your medical bills and damage to your vehicle. However, while the coverage is a step in the right direction, it doesn’t mean that there won’t be gaps in coverage, especially in cases of serious accidents.
What Is a Declarations Page for Auto Insurance?
An auto insurance declarations page is essentially the cheat sheet for your policy. It typically details your coverage in plain language, including liability limits, comprehensive and collision coverage, uninsured motorist coverage, and more. However, your declarations page may have changed since CA SB 117 went into effect. Drivers should revisit their policy to determine any updates that may apply to their car insurance coverage, including higher premiums.
What Effects Will This New Law Have on Drivers?
The Protect California Drivers Act is a huge win for victims of car accidents, but it also benefits all drivers in the state, including those who may be responsible for an accident or accused of such. One of the most obvious improvements is the increase in liability coverage. While premiums may have gone up with the new laws, the increase in coverage means that you are less likely to be sued for damages that insurance doesn’t cover. This protects the average driver’s personal assets or wage garnishment, and provides more financial stability overall. Keep in mind that because of the 10-year minimum increase in 2035, this coverage is only set to increase as time goes on.
Your Uninsured/Underinsured Motorist (UM/UIM) Coverage Went Up, Too
Another benefit for drivers and passengers is that the updated minimums should also affect your Uninsured/Underinsured Motorist (UM/UIM) coverage. That is because insurers are required by California law to offer UM/UIM in the same amount as your liability coverage. As a driver, you have the right to waive that coverage – but you have to put it in writing, or else it remains.
If you’re hit by an uninsured (or underinsured) driver in California, you have a much better chance at getting the coverage you need under the new laws. And if you hit someone and you only have the minimum coverage, your UIM should kick in to cover any additional costs. Once again, this can keep you from being sued personally.
Of course, it’s always a good idea to review your policy to determine whether or not you’re still getting the best deal.
Additional Insurance Information for California Policyholders
While auto insurance is generally trending in the right direction, these new laws have impacted the California insurance market as a whole, and not always in a positive way. This is also due to the increase in California wildfires and other natural disasters, which in turn, have caused a spike in premium costs and unreliable policy terms. With the new update, you may find that you are unable to bundle your policies or that your umbrella policy no longer covers liability in car accidents. Now, more than ever, is a good time to review your insurance portfolio as a whole and possibly look into how to switch car insurance if you find your coverage is lacking.
Can You Have Two Auto Insurance Policies?
Technically, yes, you can have two car insurance policies on the same car, but it’s generally not a good idea. In most cases, you won’t get paid twice if you’re involved in a car accident, and processing both policies costs more money, time, and confusion. In most cases, drivers are better off purchasing additional insurance or simply upgrading their coverage amounts if they want to be extra careful.
Does Health Insurance Cover Auto Accidents?
It does, and in many cases, you may be better off using your health insurance if you are injured in a crash. That is because most folks’ health insurance gets a better “deal,” so the costs of treatment are generally lower for health insurance policyholders than auto policy holders.
One thing you can do if you are injured is use your MedPay coverage (if you have it) for expenses like co-pays, ER visits, and more. Because MedPay is a no-fault coverage, anyone can use it – but with caveats that are worth discussing with us. We encourage our clients to bring a copy of their auto insurance and their health insurance policies with them when they meet with us so we can review them together and talk through what is available.
Injured in a Crash Near Los Angeles? Our Lawyers Want to Help
The Protect California Drivers Act is a largely beneficial resource to California drivers. But even though coverage is now much more reliable, there are still circumstances where these protections fall short. If you’ve been injured in a car accident in California and need help filing a personal injury claim, contact MKP Law Group, LLP. We can help you review your legal options and advocate for your right to a fair settlement.
