Auto Insurance… Am I covered? What does my coverage really cover?
If I were to ask you right now. What does your auto insurance cover? Would you know exactly that? Unfortunately most people don’t. This could be for a number of reasons. One of those reason may be simply not knowing. The majority of the clients ask for just the minimum insurance requirement for the state of California. The State of California requires that a person driving a vehicle must have coverage of at least $15000 per person bodily injury to others, $30000 per accident bodily injury and $5000 per accident property damage. If you are looking just to cover the absolute minimum this is exactly what you will be getting. Here are a few things that I can recommend. One is increasing the property damage portion of your coverage to at least 10000. I have seen that this will only change your monthly premium $1-$5 per month. Well worth the investment. Another smart move is to add uninsured motorist to your auto insurance coverage. What this will do for you is cover you when you have been involved in an accident with an uninsured driver. Believe it or not this happens more than you think. Be sure to understand this coverage as well, as it regularly gets explained incorrectly. Uninsured motorist will cover your bodily injury and/or property damage caused by an uninsured driver. What I have seen with some companies is that you will still need to collect information from the at fault party in order for it to cover. This may not be true for all carriers. This is important because it means that uninsured motorist does not cover hit and run accidents as there has not been any information collect from the at-fault party. None the less Uninsured motorist still is a great coverage to have especially because it usually only cost about $5-$10 more per month.
Now to move on to the more detailed coverages. I will explain these in order to help you understand. All policies will have the Liability Insurance portion. This is what I first explained in the paragraph above. These limits can be modified and increased based on the insureds budget. Next will be Medical Payments. Medical payments covers the insured for injuries suffered as a result of an at-fault accident. This will cover the insured and/or passengers. Uninsured Motorist, covers damages caused by an uninsured driver to the insured. This is broken down the same way as the liability except there is usually a maximum property damage limit of $3500. Comprehensive and Collision together is usually referred to as “Full Coverage.” Comprehensive covers other than collision damages to your vehicle such as a theft or vandalism. Collision is any type of collision caused to your vehicle. These two coverages are combined to fully cover your vehicle. Depending on your carrier there are many other miscellaneous coverages you can purchase as well. Towing, Rental, Roadside and Loan Balance Coverage are some just to name a few. I hope this helped out a bit. If you ever have any question please feel free to leave us a message and we will be happy to help you with all your insurance needs. If you would like to check out some affordable auto insurance coverages yourself feel free to use our free comparison tool at 2autoinsurance.com. Thank you!