California State Auto Insurance – What You Need Now & Savings on the Horizon
As with most states, {California state auto insurance} law requires all motorists to carry 3 fundamental liability components.
Bodily Injury Liability (i.e. BIL) of $ 15,000 per person
Total Bodily Injury Liability (Total BIL) of $ 30,000 per accident
Property Damage Liability or PDL of $ 15,000 per 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 to blame and you’ve opted for the minimums, you personally, are now liable for the shortfall. So, you must sell your house, empty your bank account and probably alot more…how does that sound?
From experience, I recommend no less than 100k/300k/100k and more, if you are on the road frequently…particularly in the abundant elite communities of Californ-i-a. Spending a few extra dollars here is money well spent.
Thus far, we have discussed only liability insurance which doesn’t cover your injuries and damages to your car. The remainder of what we will discuss is not mandatory under California law.
First, let’s look after you. Personal Injury Protection (PIP) covers injury to you and/or your passengers. I suggest PIP coverage of no less than $ 100,000.
Next, your vehicle. To most of us, full coverage means having both 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 predetermined “deductible” amount and the insurer pays the balance.
Comprehensive covers your ride for vandalism, theft and damages due to fire, animals and acts of God.
Another vital coverage is protection against uninsured drivers. You are not at fault, but he can’t or won’t pay. Your uninsured motorist coverage steps in.
{Auto insurance 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. 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 advocacy groups are supporting the proposal because paying for miles actually driven (instead of an insurance company’s estimate) should provide savings to low mileage drivers.
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 consumers to drive less…leading to lower fuel consumption, reduced pollution & less congestion on the road.
The plan looks like an all-out winner to me.
