Hond Financial

As with most states, {California state car insurance} law requires all drivers to carry 3 fundamental liability components.

Bodily Injury Liability or BIL of $ 15,000 per person

Total Bodily Injury Liability of $ 30,000 / accident

Property Damage Liability or PDL of $ 15,000 / accident

The insurance business knows this as 15k/30k/15k.

To limit your coverage to these minimums, would be looking for trouble. Multi-car collisions & legal fees commonly boost the cost of an automobile accident into the hundreds of thousands of dollars. If you’re to blame and you’ve opted for the minimums, you personally, are now liable 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, we’ve discussed only liability coverage and that doesn’t apply to injuries to you and damages or loss of your vehicle. What we will discuss from here on is not mandated by law in California.

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 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 will pay for a pre-specified deductible amount and your insurer will pay for the balance.

Comprehensive covers your car for theft and vandalism and damages caused by fire, animal impact and acts of God.

Another essential coverage is protection from uninsured drivers. The accident is not your fault, but the guilty party can’t pay. Your uninsured driver coverage kicks in here.

{Auto insurance in Southern California} may allow “pay by the mile” plan.

California’s Insurance Commission has tabled a proposal allowing insurance companies to charge consumers 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 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 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 La Mesa} will encourage consumers to drive less…leading to lower fuel usage, reduced pollution and less road congestion.

The plan looks like an all around winner to me.

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