California Auto Insurance – What You Now Need and Savings Coming Up
As with most states, California state auto insurance law requires all drivers to carry three fundamental liability components.
Bodily Injury Liability (i.e. BIL) of $ 15,000 per person
Total Bodily Injury Liability of $ 30,000 / accident
Property Damage Liability (PDL) of $ 15,000 per accident
The insurance industry refers to this as 15/30/15.
But to rely on this coverage alone, would be sheer foolishness. Multi-car accidents and ambulance chasing lawyers commonly drive the cost of an auto accident to several hundred thousand dollars. If you’re at fault and you’ve gone with the minimums, you personally, are now on the hook for the shortfall. So, you must sell your house, empty your bank account and probably alot more…how does that sound?
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. Spending a few extra dollars here is money well spent.
Thus far, we have discussed only liability insurance which doesn’t cover your injuries and damages to your car. The rest of what we will talk about is not required by California statute.
First, let’s look after you. Personal Injury Protection (PIP) pays for injury to you and your passengers no matter who was at fault. I suggest PIP coverage of no less than $ 100,000.
Next, your vehicle. To most people, having both collision and comprehensive insurance is known as full coverage.
The purpose of collision insurance is two-fold; to cover the cost of the repair to your damaged vehicle or if “totaled” to make a cash settlement. You will pay for a pre-specified deductible amount and your insurer will pay for the balance.
Comprehensive protects your auto for theft and vandalism and damages caused by Mother Nature, animal impact and fire.
Another valuable coverage — protection from uninsured drivers. The accident is not your fault, but the guilty party can’t pay. Your uninsured driver coverage kicks in here.
Auto insurance Southern California may allow “pay by the mile” plan.
California’s Insurance Board has put forth a proposal to allow insurers to charge consumers based on miles traveled. Similar to purchasing prepaid cellular phone minutes…consumers would pay in advance for a number of miles to be driven during a specified time period. A mileage monitor will be installed in the vehicle, and insurance companies will charge on the basis of miles driven.
Consumer advocate groups are backing the plan because paying for miles traveled, instead of an insurer’s estimate, will provide savings for low mileage drivers.
And more importantly to some, the program will provide an incentive for motorists to stay away from the road. Environmentalists say this type of car insurance in La Mesa will encourage motorists to drive less…meaning lower fuel consumption, reduced pollution & less congestion on the road.
The plan looks like an all-out winner to me.
Category: General
