Liability coverage's are among the most important
in relation to your financial security. In the face of ever
increasing medical costs, the possibility of a multiple car
accident, or damage to expensive property, the minimum coverage
limits required by law may not be enough. Choosing low
liability limits could be an unwise way to save on insurance.
Bodily Injury Liability
Bodily injury liability coverage applies when,
through the use of an insured auto, you (or another insured
person) injure other people, such as pedestrians, passengers in
your car, or people in other vehicles. If injury claims or
lawsuits are brought against you, bodily injury liability coverage
provides for your legal defense. Also, if you are found
legally liable by an investigation, or by a judge, this coverage
pays the damages assessed against you up to the dollar limits of
your property.
Property Damage Liability
If you caused an accident and damaged someone
else's car, how would you pay for the damages? Suppose you
caused damage to a telephone pole, light post or a building?
Property damage liability coverage applies in these
situations. Property damage coverage does not pay for the
damage to your property, but pays up to your policy limits for the
damaged property of others if the claims or lawsuits are brought
against you.
Liability Coverage's
California's Financial Responsibility Law requires
minimum auto liability coverage limits of $15,000 per
person. $30,000 per accident for bodily injury and $5,000
for property damage. Many companies also offer higher
coverage limits if you'd like more coverage than what your auto
insurance policy offers; an "umbrella" type policy may
fit your needs.
SR-22
Every Day Insurance Services, Inc. can issue an immediate
SR-22 filing for someone who has had their license
suspended. the SR-22 filing is proof of insurance that is
filed with the Department of Motor Vehicles to re-instate a
driver's license that has been suspended. An example of this
would be someone who had a DUI or was involved in an accident and
did not have insurance at the time.
Medical Payments
Medical payments coverage pays for medical
expenses no matter who's at fault, if you and/or the occupants in
your car are injured. It also protects you and relatives
living in your household if injured in someone else's car, of if
they are injured by a car as pedestrians. All
reasonable and necessary medical expenses are covered up to the
amounts and within the time specified by your policy.
This coverage is valuable if you do not have
health insurance because payment will be made while liability is
being determined.
According to the California Insurance Code
Uninsured Motorist: Must be offered in every insurance
policy issued or determined in this state. You must sign a
special wavier to eliminate them from your policy.
Uninsured Motorist Coverage
Suppose you are injured in an accident caused by
an uninsured motorist? Or what if you're injured by a
hit-and-run driver?
In both cases, uninsured motorist coverage will
pay for the bodily injury damages that you would normal recover
from an insured driver. In addition to your medical expenses
and loss of earnings, this can also include damages for pain and
suffering.
This means your insurance company will pay up to
your policy limits; you, relatives who live with you and the
occupants of your insured car for bodily injuries caused by an
uninsured driver or by a hit-and-run accident.
Uninsured motorist coverage also covers bodily
injury costs for you and relatives who live with you, if injured
by an uninsured motorist as pedestrians or while riding in someone
else's car.
A hit-and-run driver is included in the definition
of a uninsured motorist.
Comprehensive
If your car is damaged by fire, theft, vandalism,
glass breakage, windstorm damage or even contact with an animal,
comprehensive coverage will pay the repair costs up to your policy
limits and less your deductible.
Comprehensive coverage does not include wear and
tear on your car, engine failure or other mechanical
difficulties.
When you are financing your car, comprehensive
coverage may be required by the lien-holder or lender.
Car Rental Expense
What would you do if your car was damaged in an
accident and you had no other means of transportation? Car
rental expense coverage will reimburse you for the cost of renting
a car.
Companies providing this coverage usually offer it
as an option.
Collision
The cost to fix or replace your car if it is
overturned or damaged in a collision with another car or object,
is paid by your collision coverage. Your insurance company
pays for damages up to your policy limits, regardless of who is at
fault.
Collision coverage is available only with a
deductible although there may be times when your deductible is
waived. For example when damage to your car is caused by an
uninsured driver and an uninsured deductible waiver (UDW) has been
purchased, your deductible may be waived providing certain
conditions are met.
As with comprehensive coverage, if you are
financing your car, the lien-holder may require collision
coverage.
Uninsured Collision (UC)
Suppose your insured car is not covered for
collision and you are hit by an uninsured motorist. If
you have uninsured collision coverage, your insurance company will
pay for the damage to your car or the actual cash value of the car
(whichever is less) up to $3,500.
This coverage applies only if you are legally
entitled to recover damages from another party and certain other
conditions are met.
Safely Insured.com