02/17/2022
The last time the State of California took action to protect drivers from serious financial harm by setting mandatory auto insurance liability minimums was 55 years ago – putting California in the bottom three states in the nation. Those minimums do very little to protect today's victims of motor vehicle accidents. Today, Sen. Bill Dodd (D-Napa) introduced Senate Bill 1107, co-sponsored by CAOC, that would make two significant changes to California law:
· In 1967, the legislature set liability minimums at $15,000 for single injury or death, $30,000 for the injury or death of more than one person, and $5,000 for property damage. Under SB 1107, auto insurers would be required to offer modernized, mandatory minimums of $30,000, $60,000 and $25,000, respectively.
· Under current law, auto insurers are not required to reimburse policyholders with underinsured motorist coverage (UIM) for the cost of damages beyond the amount of liability coverage carried by the negligent driver. SB 1107 would ensure drivers with UIM are fully protected. As usual, the negligent driver’s insurer would provide coverage up to the driver’s liability limit, and the victim’s insurer would now be required to pay out the difference up to the UIM limit.
“Over the last half-century, the cost of medical care and vehicular repairs has skyrocketed – leaving too many motorists underinsured and unprepared to cover the cost of being a victim of a negligent driver,” said CAOC President Craig M. Peters. “Auto insurers cannot continue to offer products that cover this century’s drivers based on last century’s standards. CAOC is proud to support SB 1107 to modernize mandatory liability minimums, and ensure drivers are fully protected by underinsured motorist coverage.”
