Vehicles: insurance.

Existing law requires an owner or operator of a motor vehicle, or an owner of a vehicle used to transport passengers for hire not regulated by the Public Utilities Commission, to maintain liability insurance coverage for the named insured and any other person using the vehicle with permission in the amount of $15,000 for the bodily injury or death of any one person, $30,000 for the bodily injury or death of all persons, and $5,000 for damage to the property of others resulting from any one accident. Existing law defines "proof of financial responsibility" for purposes of the provisions requiring an owner or operator of a motor vehicle to maintain proof of financial responsibility in these amounts, as specified, or to deposit $35,000 with the Department of Motor Vehicles. Under existing law, a violation of the Vehicle Code is a crime. This bill would, commencing on January 1, 2025, increase the amount of liability insurance coverage an owner or operator of a motor vehicle, and an owner of a vehicle used to transport passengers for hire not regulated by the Public Utilities Commission, is required to maintain to $30,000 for bodily injury or death of one person, $60,000 for bodily injury or death of all persons, and $15,000 for damage to the property of others as a result of any one accident. The bill would also increase the deposit to $75,000. The bill would, by February 1, 2023, require the Insurance Commissioner to distribute a bulletin to solicit rate applications. The bill would require the rate applications due by July 1, 2023, and a rate change would be effective on or after January 1, 2025. The bill, on January 1, 2035, would increase the minimum amounts of required liability insurance coverage by $20,000 and $40,000 for bodily injury or death of one person and all persons, respectively, and by $10,000 for property damage, and increase the minimum cash deposit by $50,000. The bill would, by July 1, 2033, require the commissioner to distribute a bulletin to solicit rate applications to effectuate the January 1, 2035 increases. Because the bill would expand the application of an existing crime, it would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. This bill would become operative only if SB 1155 of the 2021–22 Regular Session is enacted and takes effect on or before January 1, 2023.