Auto Insurance in California – What You Need Now & Savings on the Way
Written by bmlengel on February 4th, 2010
As with most states, California state car insurance law requires all motorists to carry 3 fundamental liability components.
Bodily Injury Liability (BIL) of $ 15,000 / person
Total Bodily Injury Liability (Total BIL) of $ 30,000 for each accident
Property Damage Liability (PDL) of $ 15,000 per accident
Your insurance agent calls this 15k/30k/15k.
However, to rely solely on this amount of coverage, would be foolish. 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 more dollars here is value for money.
Until now, we’ve talked about liability coverage only. That doesn’t cover injuries to you and/or damages to or loss of your automobile. What we will discuss from here on is not mandated by law in California.
First, let’s take care of 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 people, having both collision and comprehensive insurance is known as full coverage.
There are 2 reasons for collision insurance; to cover the cost of repairs to your damaged auto or, if the vehicle is “totaled”, to compensate you in cash. You are liable for a nominated “deductible” amount…and the insurance company pays the remainder.
Comprehensive protects your auto for theft and vandalism and damages caused by Mother Nature, animal impact and fire.
Another important coverage is protection against uninsured or underinsured drivers. You are not at fault, but he can’t or won’t pay. Your uninsured motorist coverage steps in.
Southern California auto insurance proposes “Pay-Per-Mile”.
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 monitoring device installed in the car will allow insurance companies to observe a driver’s car usage and 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 predict this type of car insurance in La Mesa will encourage motorists to drive less…leading to lower fuel consumption, reduced pollution and less road congestion.
The program looks like a 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
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