Southern California Car Insurance - What You Now Need and Savings Proposed

As with most states, California state auto insurance law requires all drivers 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 (PDL) of $ 15,000 per accident

In insurance industry jargon, this is known as 15/30/15.

But please understand that to rely on this coverage alone, would be asking for trouble. 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’ll have to sell your property, deplete your bank balance and maybe even more…how do you feel about that?

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 extra bucks 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 remainder of what we will discuss is not mandatory under California law.

First, let’s look after 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 of us, full coverage means having both 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 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.

Auto insurance in Southern California may allow “pay by the mile” plan.

CA’s Insurance Commissioners have tabled a plan allowing insurance companies to charge 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 some say more importantly, it will incenticize drivers to stay off our roads. Environmentalists say this type of car insurance in La Mesa will encourage consumers to drive less…meaning lower fuel usage, reduced pollution and less road congestion.

The plan looks good to me.

Southern California Car Insurance - What You Now Need and Savings Proposed

As with most states, California state car insurance law requires all drivers to carry three 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 (i.e. PDL) of $ 15,000 / accident

The insurance business knows this as 15k/30k/15k.

But please understand that to rely on this coverage alone, would be asking for trouble. Multi-car collisions & legal fees commonly boost the cost of an automobile accident into the hundreds of thousands of dollars. If you’re at fault and you’ve gone with the minimums, you personally, are now on the hook for the shortfall. So, you must sell your house, empty your bank account and probably alot more…how does that sound?

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. The rest of what we will talk about is not required by California statute.

First, let’s think about you. Personal Injury Protection (PIP) provides injury, death and disability coverage for you & your passengers. 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.

Collision insurance has a two-fold purpose; to cover the repair cost of your damaged vehicle or, if “totaled”, to make a monetary settlement. You will pay for a pre-specified deductible amount and your insurer will pay for the balance.

Comprehensive insurance protects your vehicle against theft & vandalism and damages from fire & smoke, animal impact and Mother Nature.

Another important coverage is protection against uninsured or underinsured drivers. It’s not your fault, but he won’t pay. Here’s where your uninsured/underinsured driver coverage comes to the rescue.

Auto insurance in Southern California introduces “pay-by-mile” program.

CA’s Insurance Commissioners have tabled a plan allowing insurance companies to charge based on actual miles driven. 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 mileage monitor will be installed in the vehicle, and insurance companies will charge on the basis of miles driven.

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 say this type of auto insurance in La Mesa and other California cities will encourage motorists to drive less…leading to lower fuel consumption, reduced pollution and less road congestion.

The plan looks good to me.