As with most states, {California auto insurance} law requires all motorists 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 for each accident

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

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

But to rely on this coverage alone, would be sheer foolishness. Multiple car accidents and ambulance chasers (i.e. lawyers) can drive the cost of a car accident to six figures and well beyond. If you’re at fault & you’ve stuck to the minimums, you and your estate, are now liable for the shortfall. So, you’ll have to sell your property, deplete your bank balance and maybe even more…how do you feel about that?

From experience, I recommend no less than 100k/300k/100k and more, if you are on the road frequently…particularly in the abundant elite communities of Californ-i-a. 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. The rest of what we will discuss is not required by CA law.

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

Next, your vehicle. To most people, full coverage means collision and comprehensive.

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 are liable for a nominated “deductible” amount…and the insurance company pays the remainder.

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 can’t pay…your uninsured driver coverage kicks in.

{Auto insurance in Southern California} proposes “Pay-Per-Mile”.

California’s Insurance Commission has tabled a proposal allowing insurance companies to charge consumers based on actual miles driven. Similar to purchasing prepaid cellular phone minutes…consumers would pay in advance for a number of miles to be driven during a specified time period. 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 some say more importantly, it will incenticize drivers to stay off our roads. Environmentalists say this type of {auto insurance La Mesa} will encourage consumers to drive less…leading to lower fuel consumption, reduced pollution and less road congestion.

The plan looks good to me.

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