As with most states, {California auto insurance} law requires all motorists to carry three fundamental liability components.
Bodily Injury Liability (BIL) of $ 15,000 / person
Total Bodily Injury Liability of $ 30,000 / accident
Property Damage Liability (i.e. PDL) of $ 15,000 / accident
Your insurance agent calls this 15k/30k/15k.
To limit your coverage to these minimums, would be looking for trouble. Multi-car collisions & legal fees commonly boost the cost of an automobile accident into the hundreds of thousands of dollars. If you are at fault and you have gone with the minimums, you personally, must cover the shortfall. Now you must re-mortgage your house, forfeit your savings & probably even more…sound good?
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. A few extra dollars spent 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 discuss is not required by CA law.
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 recommend PIP coverage of no less than $ 100,000.
Next, your vehicle. To most people, full coverage means 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 will pay for a pre-specified deductible amount and your insurer will pay for the balance.
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. It’s not your fault, but he can’t pay…your uninsured driver coverage kicks in.
{Auto insurance Southern California} 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 monitor fixed to the vehicle will allow insurers to observe car usage & charge accordingly.
Consumer advocate groups are backing the plan because paying for miles traveled, instead of an insurer’s estimate, will provide savings for 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 and less road congestion.
The plan looks like an all-out winner to me.
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