California Auto Insurance – What You Now Need and Savings Coming Up
As with most states, {California 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 of $ 30,000 per accident
Property Damage Liability or PDL of $ 15,000 per accident
In insurance industry jargon, this is known as 15/30/15.
To limit your coverage to these minimums, would be looking 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 must sell your house, empty your bank account and probably alot more…how does that sound?
On the basis of experience, I recommend a minimum of 100k/300k/100k…more if you’re on the road often, particularly in the up-market communities of California. A few extra dollars spent here is money well spent.
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 rest of what we will talk about is not required by California statute.
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 people, full coverage means 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 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 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} may allow “pay by the mile” plan.
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 advocacy groups are supporting the proposal because paying for miles actually driven (instead of an insurance company’s estimate) should provide savings to low mileage drivers.
And maybe more importantly, the plan will act as an incentive for drivers to stay off the pavement. Environmentalists predict this type of {car insurance in La Mesa} will encourage motorists to drive less…leading to lower fuel consumption, reduced pollution and less road congestion.
The program looks like a winner 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