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TwitterAs with most states, California state auto 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 of $ 30,000 / accident
Property Damage Liability or PDL of $ 15,000 / accident
The insurance business knows this as 15k/30k/15k.
But to rely on this coverage alone, would be sheer foolishness. Multi-car accidents and ambulance chasing lawyers commonly drive the cost of an auto accident to several hundred thousand 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. What we will discuss from here on is not mandated by law in California.
First, let’s think about you. Personal Injury Protection (PIP) covers injury to you and/or your passengers. I suggest 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 ride for vandalism, theft and damages due to fire, animals and acts of God.
Another essential coverage is protection from uninsured drivers. You are not at fault, but he can’t or won’t pay. Your uninsured motorist coverage steps in.
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 monitoring device installed in the car will allow insurance companies to observe a driver’s car usage and charge accordingly.
Consumer advocates are in favor of the proposal because charging for miles driven (as opposed to an insurance company’s projection) should mean savings to low mileage motorists.
And maybe more importantly, the plan will act as an incentive for drivers to stay off the pavement. Environmentalists say this type of car insurance in La Mesa will encourage motorists to drive less…leading to lower fuel consumption, reduced pollution & less road congestion.
The plan looks good to me.
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