California State Auto Insurance – What You Need Now & Savings on the Horizon
As with most states, California state car 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 / accident
The insurance business knows this as 15k/30k/15k.
However, to rely solely on this amount of coverage, would be foolish. 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?
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 talk about is not required by California statute.
First, let’s take care of 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 of us, full coverage means having both 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 insurance protects your vehicle against theft & vandalism and damages from fire & smoke, animal impact and Mother Nature.
Another vital coverage is protection against 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 in Southern California introduces “pay-by-mile” program.
California’s Insurance Board has put forth a proposal to allow insurers to charge consumers based on miles traveled. 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 device installed in the automobile will allow the insurance company to monitor a car’s mileage and charge appropriately.
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 some say more importantly, it will incenticize drivers to stay off our roads. Environmentalists predict this type of auto insurance 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.
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