Minimum insurance limits change - Contractor Insurance

Effective January 1, 2025

There are some new changes coming in 2025 that may affect your contractor business. Read about these changes below and contact us for any further questions or concerns or how to find out how this will influence your contractor’s business.

California will raise the minimum insurance limits for Bodily Injury and Property Damage on Personal and Commercial Auto policies. These changes, aimed at better financial protection, will impact all new and renewing Mercury policies.

Key Changes

Bodily Injury: New minimums are $30,000 per person / $60,000 per accident.

Property Damage: Minimum raised to $15,000 per accident.

Uninsured/Underinsured Motorists Bodily Injury: Increased to $30,000 per person / $60,000 per accident.

Uninsured Motorist Property Damage: No change

The new minimum limits will be accessible in the Agent Center. Any previously completed quotes that are modified to an effective date on or after January 1, 2025, agents will need to revise the coverage selections to align with the new minimum limits.

**Given the state mandate, lower limits will not be available, so all clients must comply with the new minimums upon renewal.

Mercury will automatically adjust any policies below these limits at renewal. Agents should prepare clients for notifications and update quotes for new business effective January 1, 2025.

This in effect will influence your insurance policy and we’re here to help you navigate these changes so that your business will be prepared and covered!