California's new auto insurance law (Senate Bill 1107), effective January 1, 2025, significantly increases minimum liability coverage requirements for drivers. Here's what you need to know about the changes and how to manage potential cost increases.

New Minimum Liability Requirements:

• Bodily Injury Per Person: $30,000 (up from $15,000)
• Bodily Injury Per Accident: $60,000 (up from $30,000)
• Property Damage Per Accident: $15,000 (up from $5,000)

Why The Change? The increase reflects rising medical costs and vehicle repair expenses. These new minimums ensure better protection for drivers involved in accidents, as previous coverage limits often fell short of actual expenses.

Impact on Insurance Premiums Expect higher monthly premiums, especially if you currently carry minimum coverage. The exact increase will vary based on:

• Vehicle type
• Insurance provider
• Driving history
• Coverage level

Managing Increased Costs with MBI Mechanical Breakdown Insurance (MBI) can help offset rising costs by protecting against non-accident-related repairs. Unlike extended warranties (unavailable in California), MBI is insurance-regulated and provides:

• Coverage for mechanical failures
• Protection beyond manufacturer warranty
• Complementary coverage to liability insurance

Available MBI Coverage Levels:

• Standard: Basic component coverage
• Premium: Enhanced protection
• Elite Plus: Comprehensive coverage

Additional MBI Benefits:

• Towing reimbursement
• Rental car coverage
• Trip interruption protection
• Optional coverage for modifications

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