What All should your Auto Insurance Cover
Buying a car is an exciting occasion. You choose one after going through numerous websites, auto magazines, and recommendations from your friends, and test drives. While you concentrate on the actual transaction, don’t ignore that little voice at the back of your head saying, ‘What about insurance?’ A few tips on what your auto insurance in Garden Grove or anywhere in California should cover will get you started.
If you are at the wrong end in an accident, this coverage deals with the costs for the car you hit. People traveling in that car will be compensated, not the ones traveling in yours. There are two kinds of liability insurance – bodily injury liability and property damage liability. Some insurers provide both in an umbrella policy.
Body injury liability
When you are at fault, this insurance pays the medical bills of the people you injured. Most policies will indicate the maximum amount they will pay per injured person as well as the maximum total amount for all injured together. The minimum required amount for these in California is $15,000 and $30,000 respectively.
Property damage liability
This is to cover the costs involved when you are responsible for the damage done to the other car due to your negligence or fault. The maximum amount covered is indicated in the policy. The minimum required amount in California is $5,000. Keep these figures in mind while purchasing an auto insurance in Garden Grove or anywhere else.
Personal injury protection
This covers the medical bills and costs involved of the passengers of the car engaged in an accident. Moreover, this also pays up for the losses if you are not able to go to work due to injuries. Usually, you just need to buy the required minimum amount as your employer-provided health, and disability insurance will cover you.
Uninsured or Underinsured Coverage
At times, the person hitting you may not have insurance or may have minimal coverage. In such cases, this policy will pay for your bodily injury or death damages. This is a relatively inexpensive coverage in most states and worth having as it pays for what your medical insurance does not.
Regardless of who is at fault, collision insurance covers the cost involved in carrying out the repairs of the car involved in an accident.
This is usually referred to as a policy that covers the insurer for all the damages other than accidental damages. This may include the car being stolen or completely damaged. It includes damage due to contact with an animal, hail or vandalism. Make sure glass is included in this policy as a chipped windscreen is quite common and its glass is not cheap.
Such a policy will pay no matter which driver was at fault in an accident. It limits your ability to sue other drivers and collect from them. This insurance is expensive and also obligatory in some states.
Sum up the value of your house, car, savings, and investments and make sure you have that much coverage. Keep your deductible (what you pay up front before the insurer pays anything) as high as possible. This will keep your premium payments low. Pay for routine repairs yourself. Keep in mind your state’s minimum insurance requirements. Now, shop around, and buy the best insurance policy for your car.