As with most states, California state car 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 (Total BIL) of $ 30,000 per accident
Property Damage Liability (i.e. PDL) of $ 15,000 / accident
The insurance industry refers to this as 15/30/15.
However, to rely solely on this amount of coverage, would be foolish. 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’ll have to sell your property, deplete your bank balance and maybe even more…how do you feel about that?
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 extra dollars 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 take care of you. Personal Injury Protection (PIP) covers you and your passengers for injury and/or accidental death. I recommend 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 must pay for a predetermined deductible, & the insurer pays for the rest.
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. You are not at fault, but he can’t or won’t pay. Your uninsured motorist coverage steps in.
Auto insurance 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 purchasing prepaid cellular phone minutes…consumers would pay in advance for a number of miles to be driven during a specified time period. A monitoring device installed in the car will allow insurance companies to observe a driver’s car usage and charge accordingly.
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 some say more importantly, it will incenticize drivers to stay off our roads. Environmentalists say this type of auto insurance in La Mesa and other California cities will encourage motorists to drive less…leading to lower fuel usage, reduced pollution & less road congestion.
The plan looks like an all-out winner to me.
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