California Auto Insurance – What You Now Need and Savings Coming Up
As with most states, California state car insurance law requires all drivers to carry 3 fundamental liability components.
Bodily Injury Liability (BIL) of $ 15,000 / person
Total Bodily Injury Liability of $ 30,000 per accident
Property Damage Liability (i.e. PDL) of $ 15,000 / accident
The insurance industry refers to this as 15/30/15.
However, to rely solely on this amount of coverage, would be foolish. 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 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 more dollars here is value for money.
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 take care of 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 folks, full coverage means the combination of collision and comprehensive.
There are two purposes of collision insurance; to cover the cost of damages to your vehicle or, if your car is a total write-off, to provide a cash settlement. You are liable for a nominated “deductible” amount…and the insurance company pays the remainder.
Comprehensive covers your ride for vandalism, theft and damages due to fire, animals and acts of God.
Another essential coverage is protection from uninsured drivers. It’s not your fault, but he can’t pay…your uninsured driver coverage kicks in.
Auto insurance in 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 minutes for a mobile phone…the consumer would pay up-front for a fixed number of miles to be driven in a limited period of time. A monitor fixed to the vehicle will allow insurers to observe car usage & charge accordingly.
Consumer advocates are in favor of the proposal because charging for miles driven (as opposed to an insurance company’s projection) should mean savings to low mileage motorists.
And more importantly to some, the program will provide an incentive for motorists to stay away from the road. Environmentalists predict this type of auto insurance La Mesa will encourage consumers to drive less…leading to lower fuel usage, reduced pollution & less road congestion.
The plan looks like an all-out winner to me.
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