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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 of $ 30,000 per accident

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

Based on experience, I recommend a bare minimum of 100/300/100 and more if you’re on the road often…particularly in the numerous elite communities of Southern California. Spending a few extra bucks 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 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, 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 important coverage is protection against uninsured or underinsured drivers. It’s not your fault, but he can’t pay…your uninsured driver coverage kicks in.

{Southern California auto insurance} 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 monitoring device installed in the car will allow insurance companies to observe a driver’s car usage and charge accordingly.

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 possibly more important, it will serve as an incentive for drivers to stay off the road. 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 plan looks like an all around winner to me.

Tags: Auto insurance in Southern California, Auto insurance Southern California, California auto insurance, California state auto insurance, Car insurance in California, Southern California auto insurance