A few words need to be understood before you can appreciate your car insurance purchase.
Liability insurance
The minimum liability coverage required by the law is $25,000 for bodily injury to other people and property damage caused by your negligence or the carelessness of someone driving your car with your permission. A minimum of $25,000 per person for bodily injuries and $50,000 per accident for property damage are mandated by law; however, drivers are strongly encouraged to seek higher limits.
Uninsured/underinsured motorist coverage
If you are injured in an accident caused by an uninsured motorist, a motorist who has bodily injury liability limits that are less than your uninsured/underinsured motorist limits, or a hit-and-run driver, your policy will pay up to $100,000 in medical expenses for you and any family members who live with you. The basic coverage is the same as your bodily injury liability coverage; however, you can purchase more coverage up to double the value of your bodily injury liability. There is no legal minimum amount required; instead, California law specifies that it should be $25,000 per person (or $50,000 per accident).
Underinsured motorist conversion coverage
This coverage covers you if you are injured in an accident caused by an underinsured motorist. If your losses exceed the at-fault driver’s insurance or other payments, your underinsured motorist conversion coverage will cover them. This optional coverage is not impacted by any other source’s payments, including the at-fault driver’s liability insurance.
For example, If you have $300,000 in uninsured/underinsured coverage and are involved in an accident with an at-fault driver who has $200,000 in bodily injury liability, without underinsured conversion coverage you would only be able to receive the other driver’s insurance of $200,000 plus your own underinsured coverage of $100,000 ($300,000 limit minus the $200,000 received from the other driver’s insurance). You could collect the full amount of $200,000 from your own underinsured coverage.
Basic reparations or medical payments coverage
If you or a family member who lives with you are hurt or killed in an accident, this optional coverage replaces previously required coverage and provides for medical payments, as well as lost wages and funeral expenses in certain situations.
Collision coverage
Replacement of your vehicle’s windshield due to an accident is covered under comprehensive coverage. Collisions with other cars or objects, as well as your car flipping over, can all result in damage to the glass on your automobile. There is usually a deductible that you must pay if you repair or replace the car.
Comprehensive coverage
Collision coverage protects you against events other than collisions, such as theft, vandalism, impact with animals or birds, explosion, flood, falling objects, windstorms, and glass breakage. There is frequently a deductible associated with collision coverage.
Full glass coverage
Towing and Roadside Assistance: This plan pays for towing and roadside assistance regardless of where you park your car. For an extra premium, it covers the expense of windshield replacement if your vehicle’s glass is broken by accident with no deductible. If you have collision or comprehensive insurance and your automobile is disabled, renting reimbursement reimburses part or all of the cost of renting a car.