As with most states, California state auto 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 per accident

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

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

But please understand that to rely on this coverage alone, would be asking for trouble. 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. A few extra dollars spent here is money well spent.

Until now, we’ve talked about liability coverage only. That doesn’t cover injuries to you and/or damages to or loss of your automobile. 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 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 protects your auto for theft and vandalism and damages caused by Mother Nature, animal impact and fire.

Another important coverage is protection against uninsured or underinsured drivers. You are not at fault, but he can’t or won’t pay. Your uninsured motorist coverage steps in.

Auto insurance in Southern California introduces “pay-by-mile” program.

CA’s Insurance Commissioners have tabled a plan allowing insurance companies to charge 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 mileage monitor will be installed in the vehicle, and insurance companies will charge on the basis of miles driven.

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 maybe more importantly, the plan will act as an incentive for drivers to stay off the pavement. Environmentalists predict this type of car insurance in La Mesa will encourage consumers to drive less…meaning lower fuel consumption, reduced pollution & less road congestion.

The plan looks like an all-out winner to me.