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Understanding Car Insurance Coverage

Things You Must Know About Car Insurance Coverage

Understanding car insurance coverage is crucial to getting the type and amount of coverage you need at a price that’s fair. However, all of the legal jargon contained in insurance documents can make them seem more intimidating than they really are. We’ve put together this guide that demystifies the complicated terminology and provides a point by point description of each of the various types of car insurance coverage, so you can make an informed decision.

Liability Insurance

If you cause an accident, liability insurance covers any property damage as well as medical expenses sustained by the other party or parties. You could go with liability insurance that just meets California’s requirements – $15/30k for injuries, $5,000 for property damage – but it is highly advised that you get better insurance for extra protection. You wouldn’t want to run the risk of having to pay a large amount of money out of your own pocket because your policy limit has been exceeded.

Collision Coverage

This type of coverage pays for your car repairs after a covered accident. If your car is totaled, this will cover the total blue book value of your car. Generally, you should get this type of coverage if you own a more expensive vehicle or one that is relatively new. It may not be worth it if you have an older, less valuable car.

Comprehensive Coverage

For typical traffic accident scenarios, there’s liability insurance and collision coverage. For everything else – hail breaks your windshield, you hit a deer, someone steals your car – there’s comprehensive coverage. Like collision coverage, this is excellent to have if you have an expensive or relatively new vehicle, and if it fits in your budget. Note: If you have a lienholder, this coverage is required.

Personal Injury Protection (PIP)

While California does not require PIP coverage, it is highly recommended that you purchase it. It covers your medical expenses along with those of your passengers, no matter who is at fault.

Uninsured/Underinsured Motorist Protection (UM/UIM)

This covers you if you are in an accident with a driver who does not have any liability insurance, or is underinsured. It also covers you in case of a hit-and-run accident. Since UM/UIM is relatively cheap to add to your policy, you should definitely consider it.

If you need an experienced car accident lawyer after an accident, contact Wilshire Law Firm for immediate assistance. We can provide you with a comprehensive case evaluation at ZERO COST to you. Our number is (800) 522-7274. Don’t delay – call us today!

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