Automobile insurance is technical due to the fact that this is a legally binding document and every aspect of your car insurance policy has already been thoroughly challenged in the court system. By understanding car insurance terminology and concepts, you can buy California car insurance with full confidence and even save some money along the way.
California Vehicle Insurance Policy Terminology tips
Liability Limits – This is the part of the policy that shows how much protection your have in the case of either a bodily injury or property damage accident.
Within California, the state requires a minimum of $15, 500 for injury or loss of life to one person, $30, 000 for injury or death to more than one person, and $5, 000 for damage to property. Your car insurance coverage policy may state 15/30/5 limits or if you have greater limits, they may read 100/300/100 or 250/500/100 or many other variations.
If you do not carry liability insurance coverage, your drivers license may be suspended, your vehicle registration may be suspended, you might be ticketed, your vehicle may be impounded and in the case of your accident, you will be personally liable to compensate for any damages you triggered.
Uninsured/Underinsured Motorists Coverage (UM/UIM) – This auto insurance coverage is commonly misunderstood by consumers and is an important part of your California car insurance plan. If another driver will cause a car accident that you are injured in, and they have low liability limits or worse, no insurance at all, your UM/UIM coverage will kick in to pay for your medical bills.
This is coverage for YOU, not the other driver.
Medical Repayment or Personal Injury Protection Coverage – This coverage is considered “no-fault” coverage and pays for medical costs of you or your passengers in your car. What most consumers don’t know, is that this coverage may apply if you are injured as a pedestrian or while entering or exiting a vehicle.
Comprehensive or Other-than-Collision Coverage – This coverage protects your vehicle for damage from anything besides collision with another vehicle or object. The exclusion is a collision with a bird or animal, which falls under comprehensive coverage. Examples of protected claims are hail, open fire or flood.
Collision Coverage – This coverage will pay for harm to your vehicle when it hits, or is hit by, another vehicle or object. In case you are involved in a car accident, your collision coverage is the protection that will pay to repair your motor vehicle.
Roadside Assistance or Towing Coverage – Insurance policy companies use different descriptions for this coverage, and benefits may differ between carriers. This coverage provides reimbursement if your vehicle needs towed or other roadside assistance such as a flat tire.
Local rental Reimbursement – In case your vehicle is damaged and is also required to be in the repair shop, this coverage will pay for a rental vehicle that you should drive. Limits are usually explained on a daily foundation and a total restrict, such as 30/600, which may provide coverage at $30 per day up to a limit of $600.
Deductible – This can be the amount that you choose to pay before the insurance coverage company will pay any amount for comprehensive or crash claim
s. Deductibles allow you to lessen your California car insurance premiums by choosing a higher deductible.
These are the most typical conditions found on your Car insurance in californiacalifornia car insurance tips policy. Each and every car insurance company has their own added features and benefits that are unique to their policy, so it will be important to read your policy and understand what coverages you truly have.
By understanding the basics of how your Ca car insurance policy works and the coverages provided, you can buy California car insurance with full confidence and ensure you get the coverage you need at the price you can afford.
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