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

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

Total Bodily Injury Liability of $ 30,000 / accident

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

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

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. 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 extra dollars 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 injury to you and/or 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 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 essential coverage is protection from uninsured drivers. It’s not your fault, but he can’t pay…your uninsured driver coverage kicks in.

Auto insurance Southern California may offer “Pay-per-mile”.

California’s Insurance Board has put forth a proposal to allow insurers to charge consumers based on miles traveled. Similar to purchasing prepaid minutes for a mobile phone…the consumer would pay up-front for a fixed number of miles to be driven in 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 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 maybe more importantly, the plan will act as an incentive for drivers to stay off the pavement. Environmentalists say this type of auto insurance in La Mesa and other California cities will encourage consumers to drive less…leading to lower fuel usage, reduced pollution and less congestion on the road.

The plan looks good to me.

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

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

Total Bodily Injury Liability of $ 30,000 per accident

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

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

To limit your coverage to these minimums, would be looking for trouble. 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?

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.

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 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 recommend 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 will pay for a pre-specified deductible amount and your insurer will pay for the balance.

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

Another essential coverage is 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.

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

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 monitor fixed to the vehicle will allow insurers to observe car usage & charge accordingly.

Consumer advocate groups are backing the plan because paying for miles traveled, instead of an insurer’s estimate, will provide savings for low mileage drivers.

And maybe more importantly, the plan will act as an incentive for drivers to stay off the pavement. Environmentalists say this type of auto insurance in La Mesa and other California cities will encourage motorists to drive less…meaning lower fuel consumption, reduced pollution and less road congestion.

The program looks like a winner to me.

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

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

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

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

Your insurance agent calls this 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’re to blame and you’ve opted for the minimums, you personally, 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?

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 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. 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 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.

There are two purposes of collision insurance; to cover the cost of damages to your vehicle or, if your car is a total write-off, to provide a cash settlement. 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 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. 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 mileage monitor will be installed in the vehicle, and insurance companies will charge on the basis of miles driven.

Consumer advocate groups are backing the plan because paying for miles traveled, instead of an insurer’s estimate, will provide savings for low mileage drivers.

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

The plan looks good to me.