Understanding Car Insurance Coverage
Car insurance is a must for anyone who drives in California. Not only is it required by law but also very expensive. Finding low-cost car insurance in California means researching the various companies available. This can be done easily through an online insurance quote tool. In this article I will discuss some of the most popular types of car insurance coverage and why they are required.
Liability Insurance – The most common type of car insurance coverage is liability insurance, which protects you if you hit another person or damage something with your vehicle. The minimum amount of liability coverage that every state requires you to have varies. Most people know that they need to purchase liability coverage, which limits their liability if they hit somebody, because they do not drive fast enough to get into accidents. However, there are states that require just the bare minimum amount of liability coverage to be legally able to drive.
Collision Insurance – This covers you and your car in the event that you cause an accident, regardless of who caused the accident. The minimum amount of auto liability insurance coverage limits that you must purchase per accident is the cost of repairs to your car and the medical bills of all parties involved in the accident. This limits only apply to liabilities, which includes bodily injury liability, if you hit someone or damage something with your car. This is the most popular form of car insurance coverage.
Bodily Injury Protection – This coverage pays for medical expenses and other costs for people who are injured in an accident with you. If you are at fault, the law requires that you pay for these medical and other expenses up to a certain amount for each person. The amount varies from state to state. If you have uninsured motorist coverage, the underinsured motorist provisions kick in, which kicks in if your car is damaged by an uninsured driver. Uninsured motorist coverage does not pay for your car. It only covers the other driver.
Comprehensive Coverage – Most auto insurance coverage limits include some type of comprehensive coverage. Some examples are collision, major medical, comprehensive and loss of control. Generally speaking most auto insurance companies offer some type of comprehensive coverage for a minimal fee.
Underinsured Motorist Coverage – This type of coverage pays the medical bills of the driver and anyone else involved in the accident caused by you. This is required by law in every state but the minimum amounts may vary. This can save you hundreds of dollars when you have an accident caused by a driver with little to no insurance.
Collision/itaire Coverage – This is the standard insurance coverage limit. It pays to repair or replace your vehicle if it is damaged or stolen. The limit is usually set at the lowest amount. Some companies offer replacement value to increase this maximum amount. The deductible may be higher with these plans. There are no-fault limits, which allows you to have medical bills paid for up to a certain amount from your pocket.
There are other individual factors that can affect your premiums. These factors, such as age, driving history, claim history, credit history, discounts, where you live, and where you work, can affect your rate. If you have a driving history that has been made public and you have multiple accidents or tickets, you can expect to pay more in insurance premiums.
Collision/itaire is usually the least expensive type of insurance, but it is not the cheapest. Collision/itaire coverage pays for the repairs or replacement of your vehicle in the event of an accident. You will only be paid the value of the car itself, and you will not be paid anything for damage to the other vehicles involved in the accident. The deductible may be high on this plan, and the insurance company will only pay out the difference between what you paid for the car and what the accident cost. Most people opt for collision insurance because it covers the least amount of damage.
Comprehensive coverage is also sometimes referred to as full coverage. This plan pays the full cost of repairs or replacements that are needed for a car. Usually the deductible is the maximum amount for this type of plan, and the rates are usually higher for women than for men. However, most insurers offer a discount for having a mechanical breakdown insurance policy. This type of policy covers the repairs or replacement costs for a vehicle if it breaks down for a period of more than a few hours.
When you are involved in an accident, you should make sure that you contact your car insurance company right away. If you do not make your claim in a reasonable amount of time, your provider will raise your rates, and you may be required to pay a large deductible to entice them to pay out on your behalf. For this reason, it is important that you are able to document all incidents that happen so that your claims can be processed as quickly as possible. You will also want to keep records of any medical bills that are incurred as a result of being injured in an accident.