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Auto Insurance in Southern California – What You Need Now & Savings Coming Up

As with most states, {California auto insurance} law requires all motorists to carry 3 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 (PDL) of $ 15,000 per accident

Your insurance agent calls this 15k/30k/15k.

However, to rely solely on this amount of coverage, would be foolish. Multiple pile-ups and ambitious lawyers often drive the cost of a vehicular accident to well beyond six figures. If you’re to blame and you’ve opted for the minimums, you personally, are now liable for the shortfall. Now you must re-mortgage your house, forfeit your savings & probably even more…sound good?

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 rest of what we will talk about is not required by California statute.

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 folks, full coverage means the combination of 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 must pay for a predetermined deductible, & the insurer pays for the rest.

Comprehensive protects your auto for theft and vandalism and damages caused by Mother Nature, animal impact and fire.

Another vital coverage is protection against uninsured 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 offer “Pay-per-mile”.

California’s Insurance Board has put forth a proposal to allow insurers to charge consumers based on miles traveled. Similar to purchasing prepaid minutes for a mobile phone…the consumer would pay up-front for a fixed number of miles to be driven in a limited period of time. A mileage monitor will be installed in the vehicle, and insurance companies will charge on the basis of miles driven.

Consumer advocate groups are backing the plan because paying for miles traveled, instead of an insurer’s estimate, will provide savings for low mileage drivers.

And more importantly to some, the program will provide an incentive for motorists to stay away from the road. Environmentalists say this type of {auto insurance in La Mesa and other California cities} will encourage motorists to drive less…meaning lower fuel consumption, reduced pollution and less congestion on the road.

The plan looks like an all-out winner to me.

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