As with most states, California state auto insurance law requires all motorists to carry three fundamental liability components.
Bodily Injury Liability (BIL) of $ 15,000 per person injured
Total Bodily Injury Liability (Total BIL) of $ 30,000 for each accident
Property Damage Liability or 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. Multiple pile-ups and ambitious lawyers often drive the cost of a vehicular accident to well beyond six figures. 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?
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. A few extra dollars spent here is money well spent.
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 remainder of what we will discuss is not mandatory under California 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 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.
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 insurance protects your vehicle against theft & vandalism and damages from fire & smoke, animal impact and Mother Nature.
Another essential coverage is protection from uninsured drivers. The accident is not your fault, but the guilty party can’t pay. Your uninsured driver coverage kicks in here.
Auto insurance Southern California may offer “Pay-per-mile”.
California’s Insurance Commission has tabled a proposal allowing insurance companies to charge consumers based on actual miles driven. Similar to purchasing prepaid minutes for a mobile phone…the consumer would pay up-front for a fixed number of miles to be driven in 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 maybe more importantly, the plan will act as an incentive for drivers to stay off the pavement. Environmentalists say this type of auto insurance La Mesa will encourage consumers to drive less…meaning lower fuel consumption, reduced pollution & less road congestion.
The plan looks like an all-out winner to me.
Fast,
Professional Service
Save up to $400 per year. Click Here for Free Quotes Now... Are you spending too much for auto insurance? Renew your auto insurance with new lower rates and save money now. Use QuoteWizard to get multiple quotes from top insurance companies and local agents in your area. It is that easy!/P> Compare rates and save up to 40%. Get your free quote today! |
 |
