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As with most states, California state auto insurance law requires all motorists to carry 3 fundamental liability components.

Bodily Injury Liability (BIL) of $ 15,000 per person injured

Total Bodily Injury Liability (Total BIL) of $ 30,000 for each accident

Property Damage Liability (PDL) of $ 15,000 per accident

In insurance industry jargon, this is known as 15/30/15.

However, to rely solely on this amount of coverage, would be foolish. Multiple pile-ups and ambitious lawyers often drive the cost of a vehicular accident to well beyond six figures. If you are at fault and you have gone with the minimums, you personally, must cover 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. The rest of what we will discuss is not required by CA law.

First, let’s think about 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 2 reasons for collision insurance; to cover the cost of repairs to your damaged auto or, if the vehicle is “totaled”, to compensate you in cash. You must pay for a predetermined deductible, & the insurer pays for the rest.

Comprehensive insurance protects your vehicle against theft & vandalism and damages from fire & smoke, animal impact and Mother Nature.

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”.

California’s Insurance Board has put forth a proposal to allow insurers to charge consumers based on miles traveled. Just like buying prepaid minutes for your cell phone…you would pay in advance for a specified number of miles to be traveled in a fixed period of time. A monitor fixed to the vehicle will allow insurers to observe car usage & charge accordingly.

Consumer protection groups are pushing for the proposal because paying for driven miles, as opposed to the insurance company’s projection, should allow cost savings for low mileage motorists.

And some say more importantly, it will incenticize drivers to stay off our roads. Environmentalists say this type of auto insurance La Mesa will encourage motorists to drive less…meaning lower fuel usage, reduced pollution & less congestion on the road.

The program looks like a winner to me.

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