California Auto Insurance - What You Now Need and Savings Coming Up
As with most states, {California state car insurance} law requires all motorists to carry three fundamental liability components.
Bodily Injury Liability (BIL) of $ 15,000 per person injured
Total Bodily Injury Liability of $ 30,000 per accident
Property Damage Liability (PDL) of $ 15,000 per accident
The insurance industry refers to this as 15/30/15.
But please understand that to rely on this coverage alone, would be asking for trouble. Multiple car accidents and ambulance chasers (i.e. lawyers) can drive the cost of a car accident to six figures and well beyond. If you’re to blame and you’ve opted for the minimums, you personally, are now liable for the shortfall. So, you’ll have to sell your property, deplete your bank balance and maybe even more…how do you feel about that?
Based on experience, I recommend a bare minimum of 100/300/100 and more if you’re on the road often…particularly in the numerous elite communities of Southern California. A few extra dollars spent here is money well spent.
So far, only liability coverage has been discussed…and that does not apply to damages to your vehicle or injuries to you. What we will discuss from here on is not mandated by law in California.
First, let’s take care of you. Personal Injury Protection (PIP) provides injury, death and disability coverage for you & your passengers. I suggest PIP coverage of no less than $ 100,000.
Next, your vehicle. To most of us, full coverage means having both collision and comprehensive.
There are 2 reasons for collision insurance; to cover the cost of repairs to your damaged auto or, if the vehicle is “totaled”, to compensate you in cash. You are liable for a predetermined “deductible” amount and the insurer pays the balance.
Comprehensive protects your auto for theft and vandalism and damages caused by Mother Nature, animal impact and fire.
Another vital coverage is protection against uninsured drivers. The accident is not your fault, but the guilty party can’t pay. Your uninsured driver coverage kicks in here.
{Auto insurance in Southern California} proposes “Pay-Per-Mile”.
California’s Insurance Commission has tabled a proposal allowing insurance companies to charge consumers based on actual miles driven. Just like buying prepaid minutes for your cell phone…you would pay in advance for a specified number of miles to be traveled in a fixed period of time. A mileage monitor will be installed in the vehicle, and insurance companies will charge on the basis of miles driven.
Consumer protection groups are pushing for the proposal because paying for driven miles, as opposed to the insurance company’s projection, should allow cost savings for low mileage motorists.
And some say more importantly, it will incenticize drivers to stay off our roads. Environmentalists say this type of {auto insurance La Mesa} will encourage motorists to drive less…meaning lower fuel usage, reduced pollution & less congestion on the road.
The plan looks like an all-out winner to me.
