As with most states, {California auto insurance} law requires all drivers 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 per accident

Property Damage Liability (i.e. PDL) of $ 15,000 / accident

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

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’re at fault and you’ve gone with the minimums, you personally, are now on the hook 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?

Based on experience, I recommend a bare minimum of 100/300/100 and more if you’re on the road often…particularly in the numerous elite communities of Southern California. Spending a few more dollars here is value for money.

Thus far, we have discussed only liability insurance which doesn’t cover your injuries and damages to your car. The rest of what we will discuss is not required by CA law.

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, full coverage means collision and comprehensive.

There are two purposes of collision insurance; to cover the cost of damages to your vehicle or, if your car is a total write-off, to provide a cash settlement. You are liable for a nominated “deductible” amount…and the insurance company pays the remainder.

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. It’s not your fault, but he can’t pay…your uninsured driver coverage kicks in.

{Southern California auto insurance} introduces “pay-by-mile” program.

California’s Insurance Commission has tabled a proposal allowing insurance companies to charge consumers 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 device installed in the automobile will allow the insurance company to monitor a car’s mileage and charge appropriately.

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 possibly more important, it will serve as an incentive for drivers to stay off the road. Environmentalists say this type of {auto insurance La Mesa} will encourage consumers to drive less…meaning lower fuel consumption, reduced pollution and 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

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