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Auto Insurance Coverage: What Kind of Coverage Do I Need?

Auto Insurance Coverage:

Why Are Medical Insurance coverage, Uninsured and Underinsured Motorist Coverage Essential?

In California it is the law that all motorists must have a minimum amount of liability insurance.  But is that minimum coverage going to be enough to protect you?

The minimum amount of liability coverage that California law requires is $15,000 per injured person but a maximum of $30,000 for all the persons injured in your vehicle.

Suppose you carry a minimum liability policy and you are injured by another driver in accident.  If that driver is not insured as required by law, you are not sufficiently covered for any resulting medical costs.  Even if the other driver has the minimum 15/30 policy and your (or your passengers) medical bills, wage loss, pain and suffering exceed that amount, you will be stuck without compensation for the difference.  The injured person bears the loss.

To protect you from these situations, it is important to have adequate car insurance including Uninsured and Underinsured Motorist Coverage (UM/UIM) as well as Medical Insurance Coverage. These policies are essential  to protect your self from liability if you cause an automobile accident, and to help get treatment for any injuries that may be sustained as the result of an accident.

Medical insurance coverage will cover medical bills regardless of  who caused the accident.  This means you will receive relief and compensation from you insurance company to cover your medical even before the liability issues are determined.

This is a general guide to help you know the importance of coverage for yourself and others.  It is important to know the your State Law and options available in buying an insurance policy.

A glossary of terms:

  • Liability:         Money compensation for bodily injuries and property damages you cause another driver.
  • Collision:        Pays for damage to your vehicle as a result of a collision.
  • Comprehensive:        Damages to your vehicle not as a result of a collision.
  • Medical Coverage:  Pays your medical expense regardless of who cause the accident.
  • Rental Reimbursement:  If your car is damaged, you can insure yourself usually for a daily allowance for a rental car.