Car Insurance

What is Car Insurance ?

Car insurance also known as Auto insurance helps you cover the cost in the event than an accident happen. That is why most states require you to get a car insurance. In California when it comes to car accidents they follow a “fault” system. Which means the drivers are responsible to finance the effects of any accidents they cause. Thus having car insurance would be a need. Since it provides liability coverage which helps finance any bodily injury or property damage you might have caused. Your car insurance also offers medical expenses coverage for you and you passengers medical needs. Uninsured motorist coverage in the event that you’re hit by an uninsured individual. Collision coverage covers the damage caused if you accidentally collide w/ another car or a property. And lastly Comprehensive coverage which covers damage caused other than collision such as fire, theft, vandalism, etc.

Car Insurance
Car Insurance

Understanding Vehicle Insurance Coverage

Liability Coverage

As we all know this type of coverage offers protection against lawsuits in the event that your at fault. Car insurance Liability coverage offers two types, Bodily Injury liability and property damage liability. Bodily injury liability will help cover the cost for medical expenses for the person involved. Property damage liability helps cover the expenses for the damages on the properties involved. In California the minimum coverage required for liability is $15,000/30,000. $15000 is for each person injured, $30,000 for all the persons injured, $5,000 for the property damage.

Medical Expense Coverage & PIP

This will cover you and you passengers from medical bills due to an accident regardless of who’s at fault. Medical Expense Coverage is also known as “med pay”. Med pay typically covers Doctor or Hospital visits. It also include Surgery, X-rays or prostheses, Ambulance and emergency medical technician fees, professional nursing services and other medical bills. Take note this coverage only covers the injuries sustained during an accident whether your in a car or walking at a pedestrian. If you have a health insurance med pay can help pay you co-pays. Similar with med-pay ,PIP or Personal Injury Protection is an optional coverage which help pay your lost wages due to a car accident.

Uninsured & Underinsured Motorist Coverage

According to a research from Insurance Research Council in 2011, 1 out of 7 in U.S. do not have car insurance. Uninsured Motorist coverage will help you for the cause of the damages by a driver who doesn’t have car insurance. On the other hand for Underinsured motorist. This coverage helps pay damages caused if the driver at fault’s insurance is not enough to cover the expense.

Collision Coverage

If your shopping for a car insurance you might consider collision coverage. This type of coverage helps finance the cost to repair or even replace your vehicle. Collision can also cover the damage with an accident to an object such as, fence, a tree, or even a privately owned property. But before the insurance pay for the repairs you need to pay a deductible first. This coverage is usually optional but if you have a car loan it’s typically required to have this coverage.

Comprehensive Coverage

This is a coverage that finances the cost to repair or replace your car. Comprehensive Coverage usually provides protection from theft and damage from vandalism, falling objects, fire, hail, flood or animals. If you lease or finance your vehicle its required by the lender to have this coverage until your loan has been paid off. If you own your vehicle comprehensive is optional in your car insurance policy.