As every driver knows, we are required to maintain a certain level of auto insurance coverage. This coverage is designed to protect us if we or our vehicle are damaged in an accident and cover other parties if we cause an injury. Unfortunately, minimum insurance coverage often does not provide enough money to cover the costs associated with an accident entirely.
To remedy this, Assembly Bill 3311 has been proposed. AB 3311 aims to increase California’s minimum auto insurance coverage and increase financial protections for people who are injured by other drivers.
Currently, California law requires drivers to carry minimum coverage of 15/30/5, which breaks down into:
· $15,000 for a single injury or death
· $30,000 for injury or death to more than one person
· $5,000 for property damage
If made into law, AB 3311 would change the minimum coverage amounts to 30/60/25, which breaks down into:
· $30,000 for a single injury or death
· $60,000 for injury or death to more than one person
· $25,000 for property damage
Current minimum coverage limits were set in 1967, and many lawmakers believe the amounts need to be updated. The cost of automobiles is undoubtedly higher now than in 1967, as is the cost of healthcare. With that in mind, it makes sense that coverage limits would be updated to reflect current prices.
In fact, since 2007, many states have updated their required minimum coverage limits. Believing the minimum coverage to be inadequate, states increased the minimum coverage requirement.
Some drivers may be afraid of initial premium increases, but it is too soon to tell how AB 3311 could impact insurance rates. Most states that have increased their minimum coverage limits have consequently seen a decrease in premiums and a decrease in uninsured motorist claims.
Why AB 3311 Could Benefit Drivers
If you are involved in an auto accident caused by someone, you may feel at the mercy of their insurance company. Current minimum insurance requirements are not sufficient to cover serious injuries or property damages in today’s economy.
$15,000 is hardly enough to cover an ambulance ride to the hospital if needed, much less surgery, hospitalization, or rehabilitation. Furthermore, depending on the value of your car, $5,000 is most likely not enough to cover property damage.