Automobile Insurance

The State of California requries all persons who own a vehicle registered in the State to carry at LEAST 15/30/5 Coverage. What this breaks down to is as a driver you must have insurance that has Bodily Injury Limits of at least $15,000 per person and $30,000 per accident as well as Property Damage Limit of at least $5,000. However, for most people this is not enough coverage! If you cause an accident you are liable for all damages, but the insurance will only pay up to the limit on the policy, and any difference would be up to you to come up with. Read below for some more information about the type of coverage available for Auto Insurance.

Bodily Injury Coverage

All Auto policies have a Bodily Injury Limit. Most often it is split into Per Person and Per Accident limits. This means the insurance company will pay out the listed amount for any single person involved in the accident, up to the maximum Per Accident limit. The other coverage option is called Combined Single Limit, which has one limit for all payments (See below for more info). This coverage is only for injuries done to persons.

Property Damage Coverage

This coverage is normally listed as a seperate limit on the policy, and is used to pay for repairs for any damage you cause. It could be to another person\'s vehicle, home or other property. This is sometimes combined into the Combined Single Limit with the Bodily Injury coverage.

Combined Single Limit

A Combined Single Limit (CSL) can be used instead of having seperate Per Person and Per Accident limits for Bodily Injury and Property Damage coverage. When CSL is used on a policy, it indicates the maximum a company will pay for any bodily injury or property damage for one accident without limits of each person.

Comprehensive Coverage

Also called Other Than Collision (OTC) Coverage, this optional coverage provides fund for repairs when your vehicle is damaged by something other than a collision. This could be a tree falling, vandalism, theft, glass breakage, or a number of other things. Comprehensive claims do not cause your rates to go up, so there is no reason to not make a comprehensive claim. It is a good idea to have a lower Comp Deductible for this reason.

Collision Coverage

As the name implies, this covarage is used to repair your vehicle in the event of a collision. This coverage is optional as it will only cover your vehicle, not anything you hit (that would fall under Property Damage Coverage). This coverage will also pay when you are hit by an uninsured or underinsured motorist. Claims made under Collision Coverage can make your rates go up if you are found to be 50% or more at fault.

Uninsured Motorist Bodily Injury Coverage

This Coverage, also called UMBI, will pay for your bodily injury if the at fault party either has no insurance or not enough insurance. This is to safeguard you from having to try to seek out financial restituion on your own in the event the other party does not have any or enough insurance to cover the damages. This coverage will NOT pay out for a hit-and-run incident however, unless you can successfully identify the other party to prove they lack insurance.

Uninsured Motorist Property Damage Coverage

Similar to UMBI, UMPD will repair your property if it is damage by an uninsured or underinsured motorist. If you carry Collision Coverage, UMPD is replaced with the Uninsured Motorist Collision Deductible Waiver, which will waive the deductible for your collision coverage to repair your vehicle. The maximum UMPD Coverage you can get is $3,500.