As with most states, California auto insurance law requires all drivers to carry 3 fundamental liability components.
Bodily Injury Liability (BIL) of $ 15,000 / person
Total Bodily Injury Liability (Total BIL) 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. Multiple car accidents and ambulance chasers (i.e. lawyers) can drive the cost of a car accident to six figures and well beyond. 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. A few extra dollars spent 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. What we will discuss from here on is not mandated by law in California.
First, let’s take care of you. Personal Injury Protection (PIP) covers injury to you and/or your passengers. I recommend PIP coverage of no less than $ 100,000.
Next, your vehicle. To most folks, full coverage means the combination of collision and comprehensive.
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 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. The accident is not your fault, but the guilty party can’t pay. Your uninsured driver coverage kicks in here.
Southern California auto insurance proposes “Pay-Per-Mile”.
The California Insurance Commission has proposed that insurance companies be allowed to charge policy holders on the basis of 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 monitoring device installed in the car will allow insurance companies to observe a driver’s car usage and charge accordingly.
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 some say more importantly, it will incenticize drivers to stay off our roads. Environmentalists predict this type of car insurance in La Mesa will encourage consumers to drive less…meaning lower fuel consumption, reduced pollution & less road congestion.
The plan looks like an all around winner to me.
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