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

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

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 and you’ve gone with the minimums, you personally, are now on the hook for the shortfall. As a result, you’ll need to sell your home, empty your savings account and possibly more. How does that sound to you?

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 bucks 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 remainder of what we will discuss is not mandatory under California law.

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

Next, your vehicle. To most of us, full coverage means having both 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 must pay for a predetermined deductible, & the insurer pays for the rest.

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.

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

California’s Insurance Commission has tabled a proposal allowing insurance companies to charge consumers 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 device installed in the automobile will allow the insurance company to monitor a car’s mileage and charge appropriately.

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 predict this type of {auto insurance La Mesa} will encourage consumers to drive less…meaning lower fuel consumption, reduced pollution and less congestion on the road.

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