California State Auto Insurance – What You Need Now & Savings on the Horizon
As with most states, {California state auto insurance} law requires all motorists to carry three fundamental liability components.
Bodily Injury Liability or BIL of $ 15,000 per person
Total Bodily Injury Liability (Total BIL) of $ 30,000 for each 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. 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.
So far, we’ve discussed only liability coverage and that doesn’t apply to injuries to you and damages or loss of your vehicle. The remainder of what we will discuss is not mandatory under California law.
First, let's think about you. Personal Injury Protection (PIP) covers you and your passengers for injury and/or accidental death. 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.
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 covers your car for theft and vandalism and damages caused by fire, animal impact and acts of God.
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} introduces “pay-by-mile” program.
The California Insurance Commission has proposed that insurance companies be allowed to charge policy holders on the basis of 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 device installed in the automobile will allow the insurance company to monitor a car's mileage and charge appropriately.
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 more importantly to some, the program will provide an incentive for motorists to stay away from the road. Environmentalists say this type of {car insurance in La Mesa} will encourage motorists to drive less…leading to lower fuel consumption, reduced pollution & less congestion on the road.
The plan looks good to me.
Tags: Auto insurance in Southern California, Auto insurance Southern California, California auto insurance, California state auto insurance, Car insurance in California, Southern California auto insurance