Auto Insurance in Southern California – What You Need Now & Savings Coming Up
As with most states, California auto insurance law requires all motorists to carry three fundamental liability components.
Bodily Injury Liability (i.e. BIL) of $ 15,000 per person
Total Bodily Injury Liability of $ 30,000 per accident
Property Damage Liability (i.e. PDL) of $ 15,000 / accident
Your insurance agent calls this 15k/30k/15k.
To limit your coverage to these minimums, would be looking for trouble. 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?
On the basis of experience, I recommend a minimum of 100k/300k/100k…more if you’re on the road often, particularly in the up-market communities of 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 think about 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 folks, full coverage means the combination of collision and comprehensive.
Collision insurance has a two-fold purpose; to cover the repair cost of your damaged vehicle or, if “totaled”, to make a monetary 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 valuable coverage — protection from uninsured drivers. You are not at fault, but he can’t or won’t pay. Your uninsured motorist coverage steps in.
Southern California auto insurance proposes “Pay-Per-Mile”.
The California Insurance Commission has proposed that insurance companies be allowed to charge policy holders on the basis of 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 monitor fixed to the vehicle will allow insurers to observe car usage & charge accordingly.
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 possibly more important, it will serve as an incentive for drivers to stay off the road. Environmentalists say this type of car insurance in La Mesa will encourage consumers to drive less…leading to lower fuel consumption, reduced pollution and less congestion on the road.
The program looks like a winner to me.
Tags: Auto insurance in Southern California, Auto insurance Southern California, California auto insurance, California state auto insurance, Car insurance in California, Southern California auto insurance
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