January 2nd, 2010 | 
Author: As with most states, {California state auto insurance} law requires all motorists to carry three fundamental liability components.
Bodily Injury Liability or BIL of $ 15,000 per person
Total Bodily Injury Liability of $ 30,000 per accident
Property Damage Liability (i.e. PDL) of $ 15,000 / accident
The insurance industry refers to this as 15/30/15.
But to rely on this coverage alone, would be sheer foolishness. 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 & you’ve stuck to the minimums, you and your estate, are now liable for the shortfall. Now you must re-mortgage your house, forfeit your savings & probably even more…sound good?
From experience, I recommend no less than 100k/300k/100k and more, if you are on the road frequently…particularly in the abundant elite communities of Californ-i-a. Spending a few more dollars here is value for money.
Thus far, we have discussed only Liability Insurance which doesn’t cover your injuries and damages to your car. The remainder of what we will discuss is not mandatory under California law.
First, let’s take care of 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 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 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 valuable coverage — protection from uninsured drivers. It’s not your fault, but he can’t pay…your uninsured driver coverage kicks in.
{Southern California auto insurance} 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 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 device installed in the automobile will allow the Insurance company to monitor a car’s mileage and charge appropriately.
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…leading to lower fuel usage, reduced pollution & less road congestion.
The plan looks good to me.
Posted in 
Tags: