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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 (Total BIL) of $ 30,000 for each accident
Property Damage Liability or PDL of $ 15,000 per accident
Your insurance agent calls this 15k/30k/15k.
But to rely on this coverage alone, would be sheer foolishness. 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. As a result, you’ll need to sell your home, empty your savings account and possibly more. How does that sound to you?
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 bucks 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 rest of what we will talk about is not required by California statute.
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 recommend 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 are liable for a predetermined “deductible” amount and the insurer pays 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. The accident is not your fault, but the guilty party can’t pay. Your uninsured driver coverage kicks in here.
{Auto insurance in Southern California} introduces “pay-by-mile” program.
California’s Insurance Commission has tabled a proposal allowing insurance companies to charge consumers based on actual miles driven. Just like buying prepaid minutes for your cell phone…you would pay in advance for a specified number of miles to be traveled in a fixed period of time. A mileage monitor will be installed in the vehicle, and insurance companies will charge on the basis of miles driven.
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 some say more importantly, it will incenticize drivers to stay off our roads. Environmentalists predict this type of {auto insurance in La Mesa and other California cities} will encourage motorists to drive less…meaning lower fuel consumption, reduced pollution & less road congestion.
The plan looks good to me.
