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Southern California Auto Insurance – What You Need Now and Savings on the Horizon
By LaMesaDuiLawyer | February 20, 2010
As with most states, California state auto insurance law requires all drivers 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 for each accident
Property Damage Liability or PDL of $ 15,000 / accident
The insurance business knows this as 15k/30k/15k.
But please understand that to rely on this coverage alone, would be asking 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’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?
On the basis of experience, I recommend a minimum of 100k/300k/100k…more if you’re on the road often, particularly in the up-market communities of California. 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 look after you. Personal Injury Protection (PIP) provides injury, death and disability coverage for you & your passengers. I recommend PIP coverage of no less than $ 100,000.
Next, your vehicle. To most of us, full coverage means having both 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 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 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.
Southern California auto insurance proposes “Pay-Per-Mile”.
California’s Insurance Board has put forth a proposal to allow insurers to charge consumers based on miles traveled. 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 auto insurance La Mesa will encourage consumers to drive less…leading to lower fuel consumption, reduced pollution & less road congestion.
The plan looks like an all-out winner to me.
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