Southern California Car Insurance - What You Now Need and Savings Proposed
As with most states, California state auto insurance law requires all motorists to carry 3 fundamental liability components.
Bodily Injury Liability (BIL) of $ 15,000 per person injured
Total Bodily Injury Liability of $ 30,000 / accident
Property Damage Liability or PDL of $ 15,000 / accident
The insurance business knows this as 15k/30k/15k.
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. Now you must re-mortgage your house, forfeit your savings & probably even more…sound good?
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.
So far, only liability coverage has been discussed…and that does not apply to damages to your vehicle or injuries to you. What we will discuss from here on is not mandated by law in California.
First, let’s think about you. Personal Injury Protection (PIP) provides injury, death and disability coverage for you & 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.
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 protects your auto for theft and vandalism and damages caused by Mother Nature, animal impact and fire.
Another essential coverage is protection from uninsured drivers. You are not at fault, but he can’t or won’t pay. Your uninsured motorist coverage steps in.
Southern California auto insurance introduces “pay-by-mile” program.
California’s Insurance Commission has tabled a proposal allowing insurance companies to charge consumers based on 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 monitor fixed to the vehicle will allow insurers to observe car usage & charge accordingly.
Consumer protection groups are pushing for the proposal because paying for driven miles, as opposed to the insurance company’s projection, should allow cost savings for low mileage motorists.
And maybe more importantly, the plan will act as an incentive for drivers to stay off the pavement. Environmentalists say this type of auto insurance in La Mesa and other California cities will encourage motorists to drive less…meaning lower fuel usage, reduced pollution and less road congestion.
The plan looks like an all around winner to me.
