Driving is a privilege, and part of that deal is for a motorist to purchase car insurance coverage in case of an accident. However, picking out the right car insurance can be daunting, especially if you are unfamiliar with the coverages they offer.
To help you assist with this process, below are the type of automobile insurance coverage available to California drivers, as well as the requirements set by California:
Personal Liability Coverage
Personal liability is the coverage that pays for claims of bodily injury and property damage sustained by others in a car accident that you have caused. However, it is essential to note that this coverage does not apply to any bodily injury or property damage from a car accident that you had caused. Instead, this coverage protects you against claims of others from a car accident in which you are at fault.
In California, the law requires that each motorist carries a minimum personal liability coverage:
- $15,000 in bodily injury coverage per person
- $30,000 in bodily injury coverage per accident
- $5,000 in property damage liability coverage
Comprehensive Coverage
This coverage applies to any damage to your vehicle, as long as a collision does not cause the damage. This coverage typically applies to fire, theft, vandalism, flood, falling objects, and other similar incidents that cause damage to your car. This coverage does not apply to mechanical breakdown or normal wear and tear.
Collision Coverage
This coverage applies to any damage to your vehicle caused by a collision. A collision would be any physical contact with another car, or objection, or person to the accident.
Similar to comprehensive coverage, this compensation is based on the market value of your vehicle. Thus, it is usually beneficial to obtain collision coverage for a high-valued vehicle.
Underinsured and Uninsured Coverage
This coverage applies when you get into a car accident with a driver who is either uninsured or does not have any personal liability coverage.
The types of coverage may include the following:
- Uninsured Motorist Bodily Injury - This covers any injuries you and your passengers sustained in a car accident with an at-fault driver who does not have insurance coverage.
- Underinsured Motorist - This covers limited costs for bodily injury if you get into a car accident with an at-fault driver who does not have enough insurance to pay for the damages you had sustained.
- Uninsured Motorist Property Damage - This covers the damage to your car from an accident with an uninsured at-fault driver. This coverage is limited to $3,500 and only applies if the uninsured driver is identified. This means that “hit and run” car accidents would not be under this coverage if the at-fault driver is unknown. Moreover, this coverage may not be necessary if you have collision coverage.
Medical Payment Coverage, also known as Med Pay
This coverage pays for medical expenses if you or your passengers have been injured in a car accident. This coverage applies without regard to who is at fault.
Gap Coverage
This coverage pays for the difference between the fair market value of the new car that will replace your old damaged car and the balance on what was owed to the loan or lease of your previous vehicle.
Generally, insurance companies are not eager to pay out insurance claims. As such, insurance claims are often complicated, and a legal representation of an experienced attorney can be valuable in ensuring that your rightful insurance claims are granted.
The information provided in this article is meant for reference only and not to be constituted as legal or insurance advice. If you or a loved one has been involved in a vehicular accident, contact us at Injury Compensation Law PC. Our experienced personal injury attorneys can help you assess your claims and legal options regarding your accident.
