Legislature Approves Sen. Dodd’s Auto Liability Insurance Reform Bill

SACRAMENTO – The California Legislature today approved a bill from Sen. Bill Dodd, D-Napa, to improve liability coverage for California motorists, protecting people injured in crashes as well those who might be exposed to paying higher medical and vehicle repair bills.

“Today we took a big step toward ensuring crash victims get the financial support they need while covering those who might be liable for soaring medical and property damage costs,” Sen. Dodd said. “Because California drivers have been underinsured for too long and it is costing them dearly. This bill modernizes our insurance laws, bringing our state in line with what the rest of the country deems the right amount of coverage.”

Fifty-five years ago, California set the current mandatory insurance minimums, requiring drivers to carry $15,000 in coverage for a single injury or death, up to $30,000 per accident and only $5,000 for property damage. Only four states have the same or lower limits. Many drivers are under the false impression that carrying the current minimum would protect them from financial liability and make victims whole after a crash. The standard is especially hard on low-income or fixed-income residents who lack a safety net to cover damages.

Sen. Dodd’s legislation, Senate Bill 1107, would update the minimum to $30,000/$60,000/$15,000, bringing it in line with increased costs over the past half-century on everything including vehicle repairs, medical care and emergency services.

The bill is supported by groups representing California consumers and seniors. It passed the full Senate today after previously clearing the Assembly, and heads to Gov. Gavin Newsom for a signature.

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Senator Bill Dodd represents the 3rd Senate District, which includes all or portions of Napa, Solano, Yolo, Sonoma, Contra Costa, and Sacramento counties. You can learn more about the district and Senator Dodd at www.sen.ca.gov/dodd.