California Auto Insurance – What You Now Need and Savings Coming Up
As with most states, California state auto insurance law requires all motorists to carry three fundamental liability components.
Bodily Injury Liability or BIL of $ 15,000 per person
Total Bodily Injury Liability of $ 30,000 per accident
Property Damage Liability (PDL) of $ 15,000 per accident
In insurance industry jargon, this is known as 15/30/15.
But to rely on this coverage alone, would be sheer foolishness. 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 must sell your house, empty your bank account and probably alot more…how does that sound?
Based on experience, I strongly suggest a bare minimum of 100/300/100 and more if you’re often on the road…particularly in the many elite communities of the Golden State. 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. 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.
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 will pay for a pre-specified deductible amount and your insurer will pay for the balance.
Comprehensive insurance protects your vehicle against theft & vandalism and damages from fire & smoke, animal impact and Mother Nature.
Another important coverage is protection against uninsured or underinsured 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.
CA’s Insurance Commissioners have tabled a plan allowing insurance companies to charge based on actual miles driven. Similar to buying prepaid cell phone minutes…consumers would pay upfront for a specified number of miles to be driven over a limited period of time. A mileage monitor will be installed in the vehicle, and insurance companies will charge on the basis of miles driven.
Consumer advocacy groups are supporting the proposal because paying for miles actually driven (instead of an insurance company’s estimate) should provide savings to low mileage drivers.
And some say more importantly, it will incenticize drivers to stay off our roads. Environmentalists predict this type of auto insurance in La Mesa and other California cities will encourage consumers to drive less…meaning lower fuel usage, reduced pollution & less congestion on the road.
The plan looks like an all-out winner to me.
