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 (Total BIL) of $ 30,000 for each accident
Property Damage Liability or PDL of $ 15,000 per accident
In insurance industry jargon, this is known as 15/30/15.
But please understand that to rely on this coverage alone, would be asking for trouble. 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 are at fault and you have gone with the minimums, you personally, must cover 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 extra dollars here is money well spent.
So far, we’ve discussed only liability coverage and that doesn’t apply to injuries to you and damages or loss of your vehicle. The rest of what we will discuss is not required by CA law.
First, let’s look after you. Personal Injury Protection (PIP) covers injury to you and/or your passengers. I recommend PIP coverage of no less than $ 100,000.
Next, your vehicle. To most folks, full coverage means the combination of collision and comprehensive.
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 are liable for a predetermined “deductible” amount and the insurer pays 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. It’s not your fault, but he can’t pay…your uninsured driver coverage kicks in.
{Southern California auto insurance} proposes “Pay-Per-Mile”.
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 monitoring device installed in the car will allow insurance companies to observe a driver’s car usage and charge accordingly.
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 possibly more important, it will serve as an incentive for drivers to stay off the road. Environmentalists say this type of {auto insurance in La Mesa and other California cities} will encourage motorists to drive less…leading to lower fuel consumption, reduced pollution and less congestion on the road.
The plan looks good 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