COMMON COVERAGES AVAILABLE IN CALIFORNIA
The most common type of auto policy that covers the insured for personal liability, physical damage, medical expenses, uninsured motorist protection in case of an accident.You should determine the type and amount of insurance you need. The following is the most common coverage available in California.
When shopping for a policy, beware of terms such as “full coverage” and “what’s required.” What one considers “full coverage” or “what’s required” may differ from one person to the next. You should determine the type and amount of insurance you need. The following is the most common coverage available in California.
Bodily Injury Liability (BI) Coverage: pays for death or serious and permanent injury to others when you are legally liable for those damages. If an insured is sued, the insurer will provide legal representation.
Property Damage Liability (PD) Coverage: pays for damages that an insured is legally liable for resulting in the physical damage to, or destruction of, tangible property of another, including loss of use. If an insured is sued, the insurer will provide legal representation. California law requires a minimum of $10,000 in this coverage.
Uninsured/Underinsured Motorist (UM) Coverage: pays for an accidental bodily injury, sickness, or disease, including death, when such an injury is the result of an automobile accident and the at-fault party does not have Bodily Injury (BI) Coverage or has liability limits lower than what is needed.
Medical Payments (Med Pay) Coverage: pays reasonable expenses for necessary medical due to a bodily injury or death sustained in an automobile accident, regardless of fault.
Comprehensive or Other than Collision Coverage: pays for damage to a vehicle from incidents other than a collision including: fire, theft, windstorm, vandalism or flood. It also covers damages caused by falling objects or from hitting an animal.
Collision Coverage: pays for repair or the actual cash value of the insured’s vehicle if it collides with another vehicle, flips over, or crashes into an object (except animals), regardless of who causes the accident.
Towing & Labor Coverage: provides coverage for emergency road service (at the scene) and towing up to the limits shown on the policy.
Rental Reimbursement: provides reimbursement for automobile rental up to a specified limit shown on the policy. It applies if the insured gets into an accident with their own automobile and can no longer drive it, and usually if the auto is stolen. Some insurance companies will have the insured rent/lease the replacement vehicle and then submit receipts for reimbursement.