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 per accident
Property Damage Liability or PDL of $ 15,000 / accident
The insurance industry refers to this as 15/30/15.
But please understand that to rely on this coverage alone, would be asking for trouble. Multiple pile-ups and ambitious lawyers often drive the cost of a vehicular accident to well beyond six figures. If you’re at fault and you’ve gone with the minimums, you personally, are now on the hook 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 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. A few extra dollars spent here is money well spent.
Until now, we’ve talked about liability coverage only. That doesn’t cover injuries to you and/or damages to or loss of your automobile. The rest of what we will discuss is not required by CA law.
First, let’s look after you. Personal Injury Protection (PIP) covers you and your passengers for injury and/or accidental death. I recommend PIP coverage of no less than $ 100,000.
Next, your vehicle. To most people, having both collision and comprehensive insurance is known as full coverage.
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 will pay for a pre-specified deductible amount and your insurer will pay for the balance.
Comprehensive covers your ride for vandalism, theft and damages due to fire, animals and acts of God.
Another valuable coverage — protection from uninsured drivers. It’s not your fault, but he won’t pay. Here’s where your uninsured/underinsured driver coverage comes to the rescue.
Southern California auto insurance may offer “Pay-per-mile”.
CA’s Insurance Commissioners have tabled a plan allowing insurance companies to charge 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 mileage monitor will be installed in the vehicle, and insurance companies will charge on the basis of miles driven.
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 say this type of car insurance in La Mesa will encourage consumers to drive less…meaning lower fuel consumption, reduced pollution & less congestion on the road.
The plan looks like an all-out winner to me.
