Auto Insurance 101 California

Auto insurance 101 gives protection against any form of financial loss when you are involved in an accident. This is a binding agreement between the California auto insurance company, and you. You are required to pay a premium, or insurance cost, in a business exchange for the California auto insurance company’s agreement to cover for losses as stated in the policy.

Auto insurance 101 offers liability, property, and medical coverage:
Liability coverage covers legal charges to others for property damage or bodily injury.
Property coverage covers charges for the insured’s car replacement or repairs.
Medical coverage covers the cost of injury treatments, and rehabilitation.
Several California auto insurance company offers an agreement that last for between six months to one year.

Auto insurance consist of six various types of coverage. Some are state-mandated, and the others optional.

- Bodily Injury Liability;
This coverage covers the injury of others. Drivers that are enlisted on the coverage are also covered when they drive another person’s car with the owner’s consent. In California, the minimum state requirement is 15/30/5.
- Medical Payments or Personal Injury Protection (PIP)
This covers for the driver’s treatment and for passengers in the driver’s car. Funeral cost may also be covered.
- Property Damage Liability;
This covers for the cost of damage that you done to someone’s property. These properties includes others’ cars, lamp posts, fences, telephone poles, buildings, and others.
- Collision
This covers for costs of repair of your car, caused by accidents or potholes. This coverage is often sold with a deductible of $250 to $1,000.
- Comprehensive;
This covers for loss from theft or damage as a result of causes different from collision, such as fire, falling objects, explosion, missiles, earthquake, flood, etc. This coverage also takes care of cracked or broken windshields. This coverage is often sold with a $100 to $300 deductible.
- Uninsured and Underinsured Motorist Coverage
This covers for charges of damage and losses caused by uninsured motorist. This also covers for your protection if a pedestrian is hit. Underinsured motorist coverage is valid when the driver who is at-fault does not have sufficient coverage for you.