Auto Insurance in Southern California – What You Need Now & Savings Coming Up
As with most states, California auto insurance law requires all drivers to carry 3 fundamental liability components.
Bodily Injury Liability (i.e. BIL) of $ 15,000 per person
Total Bodily Injury Liability of $ 30,000 per accident
Property Damage Liability (PDL) of $ 15,000 per accident
The insurance industry refers to this as 15/30/15.
But please understand that to rely on this coverage alone, would be asking for trouble. Multi-car accidents and ambulance chasing lawyers commonly drive the cost of an auto accident to several hundred thousand dollars. If you’re at fault and you’ve gone with the minimums, you personally, are now on the hook 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?
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 more dollars here is value for money.
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) 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 people, having both collision and comprehensive insurance is known as full coverage.
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 will pay for a pre-specified deductible amount and your insurer will pay for the balance.
Comprehensive covers your car for theft and vandalism and damages caused by fire, animal impact and acts of God.
Another valuable coverage — protection from uninsured drivers. It’s not your fault, but he can’t pay…your uninsured driver coverage kicks in.
Southern California auto insurance may allow “pay by the mile” plan.
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 monitor fixed to the vehicle will allow insurers to observe car usage & charge accordingly.
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 more importantly to some, the program will provide an incentive for motorists to stay away from the road. Environmentalists predict this type of car insurance in La Mesa will encourage consumers to drive less…leading to lower fuel usage, reduced pollution & less road congestion.
The plan looks like an all-out winner to me.
