California State Auto Insurance - What You Need Now & Savings on the Horizon
As with most states, California state auto insurance law requires all drivers to carry 3 fundamental liability components.
Bodily Injury Liability (BIL) of $ 15,000 per person injured
Total Bodily Injury Liability 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 to rely on this coverage alone, would be sheer foolishness. 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 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. 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 folks, full coverage means the combination of collision and comprehensive.
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 must pay for a predetermined deductible, & the insurer pays for the rest.
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. 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 Board has put forth a proposal to allow insurers to charge consumers based on miles traveled. Just like buying prepaid minutes for your cell phone…you would pay in advance for a specified number of miles to be traveled in a fixed 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…meaning lower fuel usage, reduced pollution and less congestion on the road.
The plan looks like an all around winner to me.
February 8, 2010 1:09 pm | 
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