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 / 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. Multi-car collisions & legal fees commonly boost the cost of an automobile accident into the hundreds of thousands of dollars. If you’re at fault & you’ve stuck to the minimums, you and your estate, 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?
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. Spending a few extra bucks here is money well spent.
Thus far, we have discussed only liability insurance which doesn’t cover your injuries and damages to your car. What we will discuss from here on is not mandated by law in California.
First, let’s think about you. Personal Injury Protection (PIP) covers you and your passengers for injury and/or accidental death. 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 will pay for a pre-specified deductible amount and your insurer will pay for the balance.
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} introduces “pay-by-mile” program.
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 mileage monitor will be installed in the vehicle, and insurance companies will charge on the basis of miles driven.
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 maybe more importantly, the plan will act as an incentive for drivers to stay off the pavement. Environmentalists predict this type of {car insurance in La Mesa} will encourage motorists to drive less…meaning lower fuel usage, reduced pollution & less road congestion.
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