Southern California Auto Insurance
Requirements and the Future of Southern California Auto Insurance
Auto insurance is required by law in California and uninsured drivers face stiff penalties. Namely, suspension of license, fines and vehicle impoundment. Aside from these penalties, it is extremely unwise to drive uninsured as you are putting everything you own at risk. In other words, don’t even think about it.
The Southern California auto insurance requirement is 15/30/15. Here are the basic components.
- Bodily Injury Liability or BIL (per person coverage) $15,000
- Total Bodily Injury Liability (per accident coverage) $30,000
- Property Damage Liability or PDL (damage toward vehicles, non-medical expenses, telephone poles and road sign damage) $15,000
But don’t be fooled into thinking these minimums are adequate.
Vehicles valued at $50,000 or more are common these days…especially in California. The reimbursement cost of a broken arm can go upwards of $25,000 when hospitalization, surgery and rehab are considered. So, it’s plain to see that a serious accident involving several vehicles will easily exceed the CA minimums.
I recommend no less than 100/300/100 and significantly more if you can afford it. It won’t increase your premiums substantially and could save you from financial ruin.
And, of course, this only liability coverage. It covers only damages to other people and their property if you are at fault. You must also consider insuring yourself and your vehicle, as well as coverage such as uninsured motorist and loss of use protection.
Statistics on Southern California Auto Insurance
Southern California Auto Insurance offers “Pay-as-you-drive”
California’s Insurance Commissioner Poizner has proposed a plan allowing insurance companies to offer coverage that is paid based on miles driven.
This is something like buying prepaid cellular phone minutes… consumers would pay in advance for a certain number of miles driven over a particular time span.
Insurance companies will be able to precisely observe a driver’s car usage allowing them to correctly charge them. Those that choose to buy this mileage verification policy should experience considerable savings.
How is all this tracking going to take place? Several options include odometer readings by:
- Self-reporting
- Insurer’s agent/broker
- Automobile repair centers
- Smog check stations
There is a device as well, that can be installed in the customer’s vehicle to track miles driven. The proposed regulations specify that these devices can not be used to determine the vehicle whereabouts!
Consumer advocates are supporting the plan because paying for miles actually driven (instead of the insurance company’s estimate) should provide a savings to drivers able to minimize commuting.
Environmentalists, of course, are in support of this type of Southern California auto insurance because it will encourage consumers to drive less…leading to lower fuel consumption, reduced pollution and less road congestion. Californians will then breathe easier and experience fewer road rage attacks.
