Best Auto Insurance Coverage For Peace Of Mind In California

Auto insurance is a legal requirement in California, and it's important to understand the different types of coverage available to you. The minimum coverage required by law in California is liability insurance, which includes bodily injury liability coverage and property damage liability coverage. This type of insurance protects you financially if you are found to be at fault for an accident, as it helps pay for the medical bills and property damage repairs of the people involved.

However, it's worth considering additional types of coverage to protect yourself and your vehicle in case of an accident. Collision coverage, for example, pays for damages to your vehicle if you are involved in an accident with another car or object, regardless of who is at fault. Comprehensive coverage pays for damage to your vehicle that is not caused by a collision, such as fire, theft or vandalism. Medical payments coverage pays for your medical bills and those of your passengers, regardless of who is at fault in the accident.

When deciding on the level of coverage, it's generally recommended that you get as much as you can afford. This will give you peace of mind and protect your savings and assets in the event of a serious accident.

Liability coverage

The minimum liability coverage required by law in California is 15/30/5, meaning the insurance will pay up to $15,000 for the death or bodily injury of any one person, $30,000 total for the death or bodily injury of all other people in the accident, and $5,000 for property damage. This basic coverage is often not enough to fully protect you or your assets if you are found to be at fault in an accident. For example, if you cause a wreck that results in injuries and car damage to another driver, you will likely be responsible for their medical bills and car repair costs. If their medical bills amount to $20,000 and their car repairs cost $10,000, the minimum liability insurance will only cover the first $15,000 in medical bills and $5,000 for repairs, leaving you to pay the remaining $5,000 in medical bills and repairs out-of-pocket.

It is recommended that drivers purchase as much liability insurance as they can afford, especially if they have significant assets like a home. If you have few assets, it is recommended to raise your liability coverage to $50,000 per person and $100,000 per accident. If you have more assets, such as a house, expensive car, or large savings, experts suggest increasing your coverage to at least $100,000 per person and $300,000 per accident.

Collision coverage

In California, if you carry collision coverage on your car, you may be eligible for the California Deductible Waiver. This means that if an uninsured driver causes an accident, your insurance company will pay the collision deductible on your car.

Comprehensive coverage

The deductible is the amount you must pay before your insurance company covers the rest. A higher deductible results in a lower premium, but you will have to pay more out of pocket if an accident occurs. For example, if you have a $500 deductible and your car sustains $1,500 of damage, you will pay $500, and your insurance will cover the remaining $1,000.

In California, the average cost of full-coverage auto insurance is about $2,475 per year, or $206.25 per month. However, rates vary depending on factors such as age, location, driving record, and gender. California law prohibits the use of gender and credit score to determine insurance rates.

Medical payments coverage

Med Pay is particularly good if you have no health insurance, or if your insurance has high deductibles or co-pays. Even if you have good health insurance, Med Pay also covers passengers in your vehicle, whether or not they have health insurance. Unlike many health plans, it has no limit on the types of services or providers you can use. Med Pay coverage is "per incident", so there are no yearly caps as found in many health insurance policies.

Med Pay policies start at $1,000 per person injured and are typically sold in coverage amounts of $1,000, $2,000, $5,000, $10,000, or $25,000. Some large insurers offer Med Pay coverage of up to $100,000.

In California, an insurer cannot raise rates when you make a claim and were not at fault. If you were at fault, it is up to the insurer whether to raise your rates.

Uninsured motorist coverage

If you are injured by an uninsured or underinsured driver, having UMC allows you to still collect damages for medical costs, lost wages, car repair bills, pain and suffering, and other losses. It is first-party insurance that allows you to recover from your own insurance company for all your compensatory damages after an accident that is not your fault (up to your policy limit). This includes services that regular health insurance plans do not cover, such as chiropractic care and acupuncture.

Even if you have a good health insurance plan, it is still recommended that you carry UMC. UMC can also cover you and any family members living in your household. It can also cover your friends and non-household family members if the collision occurs while they are driving your car with permission, are passengers in your car, or are exiting your car.

Frequently asked questions