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

Bodily Injury Liability (i.e. BIL) of $ 15,000 per person

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

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

Your insurance agent calls this 15k/30k/15k.

But to rely on this coverage alone, would be sheer foolishness. Multiple pile-ups and ambitious lawyers often drive the cost of a vehicular accident to well beyond six figures. If you’re to blame and you’ve opted for the minimums, you personally, are now liable for the shortfall. Now you must re-mortgage your house, forfeit your savings & probably even more…sound good?

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 more dollars here is value for money.

Thus far, we have discussed only liability insurance which doesn’t cover your injuries and damages to your car. The rest of what we will talk about is not required by California statute.

First, let’s take care of you. Personal Injury Protection (PIP) covers injury to you and/or your passengers. I recommend PIP coverage of no less than $ 100,000.

Next, your vehicle. To most people, full coverage means 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 are liable for a nominated “deductible” amount…and the insurance company pays the remainder.

Comprehensive protects your auto for theft and vandalism and damages caused by Mother Nature, animal impact and fire.

Another valuable coverage — 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 Southern California introduces “pay-by-mile” program.

California’s Insurance Board has put forth a proposal to allow insurers to charge consumers based on miles traveled. 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 monitor fixed to the vehicle will allow insurers to observe car usage & charge accordingly.

Consumer advocacy groups are supporting the proposal because paying for miles actually driven (instead of an insurance company’s estimate) should provide savings to low mileage drivers.

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

The plan looks good to me.