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 (BIL) of $ 15,000 per person injured

Total Bodily Injury Liability of $ 30,000 per accident

Property Damage Liability or 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 pile-ups and ambitious lawyers often drive the cost of a vehicular accident to well beyond six figures. If you’re at fault & you’ve stuck to the minimums, you and your estate, are now liable for the shortfall. As a result, you’ll need to sell your home, empty your savings account and possibly more. How does that sound to you?

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 bucks 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 discuss is not required by CA law.

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 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 insurance protects your vehicle against theft & vandalism and damages from fire & smoke, animal impact and Mother Nature.

Another essential coverage is protection from uninsured drivers. It’s not your fault, but he won’t pay. Here’s where your uninsured/underinsured driver coverage comes to the rescue.

Auto insurance Southern California introduces “pay-by-mile” program.

California’s Insurance Commission has tabled a proposal allowing insurance companies to charge consumers 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 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 possibly more important, it will serve as an incentive for drivers to stay off the road. Environmentalists predict this type of auto insurance in La Mesa and other California cities will encourage consumers to drive less…leading to lower fuel consumption, reduced pollution and less road congestion.

The plan looks like an all-out winner to me.