I have been in the business a long time and I know from experience that clients can misunderstand coverages. This article is to help break down and explain what your insurance really covers. Let’s start with the basics. First off there is liability. Liability covers the third party. If you damage someone’s vehicle or property you are liable to repair or replace their property. Liability is required by law in California. The next coverage I would like to explain is Uninsured Motorist. Uninsured Motorist consist of two parts, bodily Injury and property damage. This coverage is one that I always recommend to my clients because of the affordability and extent of coverage. This coverage protects the Insured (you) from uninsured drivers. If someone is driving without insurance and you only have liability. There is a possibility that you will be left without any indemnification if the other party is at fault and driving without insurance. This can be devastating if you don’t have the finances to get you back on the feet. Uninsured Motorist will cover your bodily injury if you are injured and your property damage as well. Limits can vary by carrier. Property damage for uninsured motorist is $3,500.00 max for California. Bodily Injury limits are usually equal to your amount of liability requested. Next, there is Medical Payments. This coverage will cover your medical payments whether you are the at fault party or not. This coverage is pretty basic and will usually range from $1000 – $15000 depending on the carrier. Not that significant but would definitely help you pay your health insurance deductible. Now to the vehicle coverage. Comprehensive and Collision these two coverages together are often pair up and referred to as Full Coverage. Comprehensive covers for theft, vandalism and many other perils. Collision is going to cover any damage to your vehicle as a result from a traffic collision. If you are financing a vehicle you are usually required to obtain both these coverages. The last thing you would want is to be paying a monthly car payment for a vehicle you no longer have. These are all the basic coverages. There are many other options that are available depending on if your insurance company offers them. Here are a few more. Rental Car is a convenient coverage that can be added with little effect on premium. This will come in handy if your car is being repaired and you don’t have a spare vehicle available. Rental cars can be expensive. Towing and Roadside Assistance is another one to think about adding. I do want to explain the difference between the two. Towing will only cover towing cost incurred as result of an accident. Roadside Assistance will cover you anytime and will have a set amount of times you can use this coverage per term of the policy. All these coverages are to help with the additional cost incurred by an accident and can come in handy when the unexpected happens. Talk to your agent. Explore your options. Pick a policy that is going to work best for you and fits your budget. To help compare your insurance today check out our free search tool or call an agent today.
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