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

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

Total Bodily Injury Liability of $ 30,000 / accident

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

In insurance industry jargon, this is known as 15/30/15.

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 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?

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.

So far, only liability coverage has been discussed…and that does not apply to damages to your vehicle or injuries to you. The rest of what we will talk about is not required by California statute.

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.

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 predetermined “deductible” amount and the insurer pays the balance.

Comprehensive covers your ride for vandalism, theft and damages due to fire, animals and acts of God.

Another valuable coverage — 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.

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

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 some say more importantly, it will incenticize drivers to stay off our roads. Environmentalists predict 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 & less congestion on the road.

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