Southern California Auto Insurance – What You Need Now and Savings on the Horizon
As with most states, California state car insurance law requires all motorists to carry 3 fundamental liability components.
Bodily Injury Liability (BIL) of $ 15,000 / person
Total Bodily Injury Liability (Total BIL) of $ 30,000 per accident
Property Damage Liability or PDL of $ 15,000 per accident
Your insurance agent calls this 15k/30k/15k.
But please understand that to rely on this coverage alone, would be asking for trouble. Multiple pile-ups and ambitious lawyers often drive the cost of a vehicular accident to well beyond six figures. 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 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. Spending a few more dollars here is value for money.
Until now, we’ve talked about liability coverage only. That doesn’t cover injuries to you and/or damages to or loss of your automobile. What we will discuss from here on is not mandated by law in California.
First, let’s think about you. Personal Injury Protection (PIP) pays for injury to you and your passengers no matter who was at fault. I recommend PIP coverage of no less than $ 100,000.
Next, your vehicle. To most people, full coverage means 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 must pay for a predetermined deductible, & the insurer pays for the rest.
Comprehensive covers your ride for vandalism, theft and damages due to fire, animals and acts of God.
Another valuable coverage — 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 proposes “Pay-Per-Mile”.
California’s Insurance Board has put forth a proposal to allow insurers to charge consumers based on miles traveled. 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 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 some say more importantly, it will incenticize drivers to stay off our roads. Environmentalists predict this type of car insurance in La Mesa will encourage motorists to drive less…leading to lower fuel usage, reduced pollution & less road congestion.
The plan looks like an all around winner to me.
