Starting January 1, 2026, California drivers will see many changes to uninsured motorist (UM) and underinsured motorist (UIM) insurance coverage due to Senate Bill 371 (SB 371). Understanding how these new limits work can help California motorists make informed decisions about their insurance coverage and better prepare for the financial consequences of a serious collision.
What Is UM/UIM Coverage?
Uninsured motorist (UM) coverage helps protect you if you are injured in an accident caused by a driver who has no liability insurance.
Underinsured motorist (UIM) coverage applies when the at-fault driver has insurance, but their policy limits are insufficient to cover the full amount of your damages.
What Changes Under SB 371?
Prior to 2025, California required drivers to carry minimum liability insurance limits of:
- $15,000 for bodily injury to one person
- $30,000 for bodily injury per accident
- $5,000 for property damage
SB 1107 first increased those limits in 2025. Beginning January 1, 2026, the minimum required liability coverage becomes:
- $30,000 for bodily injury to one person
- $60,000 for bodily injury per accident
- $15,000 for property damage
Why the New Limits Matter
Medical treatment following a serious collision can become expensive very quickly. Emergency transportation, hospitalization, surgeries, diagnostic imaging, rehabilitation, and follow-up care may collectively exceed tens of thousands of dollars.
Although increasing liability limits from $30,000 to $60,000 per accident represents meaningful progress, many serious injury claims can still involve damages that exceed those amounts.
As a result, consumers may still encounter situations where:
- Medical expenses exceed available insurance limits.
- Lost income continues long after policy limits have been exhausted.
- Long-term rehabilitation creates additional financial challenges.
- Multiple injured occupants must share the available bodily injury coverage.
How the 2026 Changes Affect UM/UIM Claims
The increased liability limits may reduce some situations in which an injured person must immediately rely on UM/UIM coverage. However, UM/UIM insurance continues to play an important role because many drivers carry only the minimum required coverage.
For example, if several people are injured in the same collision, the available bodily injury limits may be divided among all claimants. Depending on the severity of the injuries, the available insurance may not fully cover each person's losses. If an injured individual carries UIM coverage with higher limits than the at-fault driver's policy, that coverage may provide additional protection. Each claim depends on the specific policy language, available coverage, and applicable California insurance laws.
Why Consumers Should Review Their Insurance Policies
Many California drivers purchase minimum coverage, usually because it satisfies state legal requirements. However, minimum coverage may not always provide sufficient financial protection following a serious accident. Consumers may wish to periodically review the following.
- UM/UIM policy limits
- Bodily injury liability limits
- Medical payments coverage (MedPay), if available
- Collision and comprehensive coverage
- Deductible amounts
- Household drivers listed on the policy
Reviewing insurance policies after legislative changes such as SB 371 may help ensure that coverage continues to match an individual's needs and financial circumstances.
The Continuing Challenge of Uninsured Drivers
Although California requires all motorists to maintain liability insurance, uninsured driving remains an issue throughout the state. When an uninsured driver causes a collision, injured individuals may face additional challenges in recovering compensation for medical expenses, lost income, and other damages. The 2026 increase in minimum liability limits does not eliminate the possibility of accidents involving uninsured motorists, making UM coverage a consideration for many California drivers.
Legal Guidance Following an Accident
Every motor vehicle accident presents unique facts and legal issues. Questions regarding insurance coverage, policy limits, comparative negligence, available damages, and applicable deadlines often require careful evaluation. After an accident, individuals may consider the following.
- Reporting the collision as soon as possible
- Seeking appropriate medical evaluation
- Preserving photographs, witness information, and other evidence
- Reviewing applicable insurance policies
- Keeping records of medical treatment and expenses
- Consulting with an attorney to better understand their legal rights and available options under California law
How KAASS LAW Can Help
Motor vehicle accident claims involving uninsured or underinsured motorists often require careful review of insurance policies, available coverage, and California insurance laws. Questions may arise regarding liability limits, UM/UIM benefits, multiple insurance policies, and claim procedures.
KAASS LAW assists clients by evaluating the facts of their accident, reviewing available insurance coverage, communicating with insurance carriers when appropriate, and explaining the legal options available based on the circumstances of each case.
Every accident is different, and the outcome of any claim depends on its unique facts, the available evidence, applicable insurance policies, and California law. Contact KAASS LAW today for a confidential consultation.