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

Bodily Injury Liability or 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 / accident

The insurance industry refers to this as 15/30/15.

However, to rely solely on this amount of coverage, would be foolish. Multi-car accidents and ambulance chasing lawyers commonly drive the cost of an auto accident to several hundred thousand dollars. If you’re at fault and you’ve gone with the minimums, you personally, are now on the hook 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?

Based on experience, I strongly suggest a bare minimum of 100/300/100 and more if you’re often on the road…particularly in the many elite communities of the Golden State. Spending a few extra bucks here is money well spent.

So far, only liability coverage has been discussed…and that does not apply to damages to your vehicle or injuries to you. What we will discuss from here on is not mandated by law in California.

First, let’s think about 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 folks, full coverage means the combination of 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 must pay for a predetermined deductible, & the insurer pays for the rest.

Comprehensive covers your car for theft and vandalism and damages caused by fire, animal impact and acts of God.

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

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

The California Insurance Commission has proposed that insurance companies be allowed to charge policy holders on the basis of 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 monitoring device installed in the car will allow insurance companies to observe a driver’s car usage and 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 more importantly to some, the program will provide an incentive for motorists to stay away from the road. Environmentalists say this type of auto insurance in La Mesa and other California cities will encourage motorists to drive less…leading to lower fuel usage, reduced pollution & less road congestion.

The program looks like a winner to me.