Coverage Basics: Available on Most California Automobile Policies
Types of Coverage
Liability, Bodily Injury, & Property Damage
Your responsibility to pay for medical, death and hospital expenses including cost of repairs to other party's vehicle or property.
Covers: The insured's legal liability for bodily injury and property damage arising from ownership or use of the insured vehicle.
Required: Yes, by California Department of Motor Vehicle Code
Uninsured/Underinsured Motorist Bodily Injury
Provides coverage for a policyholder involved in a collision with a driver who does not have liability insurance or who does not have sufficient liability limits to pay for damages.
Covers: The other party's legal liability to you for bodily injury arising from the negligent operation of their uninsured vehicle.
Required: No, but every automobile insurance company must offer uninsured motorist coverage, and they are required to have a signed waiver on file if the coverage is rejected
Uninsured Motorist Property Damage
Pays for cost of repairs to your vehicle not covered by collision insurance, subject to a limit of $3,500. UMPD coverage pays for the property damage to your car when there is a collision with an identified uninsured driver.
Covers: The other party's legal liability for property damage arising from the negligent operation of their uninsured vehicle.
Required: No, but every automobile insurance company must offer uninsured motorist coverage, and they are required to have a signed waiver on file if the coverage is rejected.
Medical Payments
Pays for medical expense incurred without question of legal liability
Covers: All the occupants of your vehicle
Required: No.
Comprehensive Physical Damage other than Collision
Pays for cost of repairs or the fair market value of the vehicle.
Covers: The insured vehicle subject to the deductible
Required: Yes, by lenders and leasing companies.
Collision
Pays for cost of repairs or the fair market value of the vehicle
Covers: The insured vehicle subject to the deductible.
Required: Yes, by lenders and leasing companies.
Endorsements/Riders
Special equipment (i.e. after-market additions such as premium stereos, tires, and other misc. equipment), towing, and rental reimbursement.
Rental Reimbursement Daily limit and number of days subject to policy terms
Pays for cost of a rental car while your vehicle is being repaired under coverage afforded by the policy.
Covers: Named Insured
Required: No.
Towing
Pays for reasonable and necessary towing and labor cost subject to policy terms.
Covers: Named Insured
Required: No.
Before You Sign on the Dotted Line...
Tips to keep in mind when you are ready to buy insurance:
- Provide the drivers license numbers for all drivers in the household.
- Have vehicle registration numbers available for all vehicles in the household.
- Furnish updated driver safety records for all drivers in the household, including past accident and claim information.
- Put together insurance information in order to compare coverages, provide names of insurance companies, and give policy numbers. Ask if a broker's fee is included or if one will be charged.
- Be prepared to pay the premium in full, make a down payment, or arrange premium financing.
- Do not sign blank documents or documents you do not understand.
- Keep notes of the conversation for your records. Mark down who you talked to and what was said.
- Provide complete, accurate information.
- Find out the complete name of the underwriting insurance company in which your coverage is to be placed.
- Ask for copies of all documents for your records before you leave the office.
It is very important to be familiar with your automobile insurance policy before you need it. Read the policy thoroughly so you know what is covered and what is excluded. Call your company or agent/broker if you don't understand any item in your policy.
BACK TO TOP
|
