 |
Auto
Coverage Types
Coverages are various financial protections for you, your car, and others in the
event of an accident or loss where you could be considered responsible. Even though
it may not be your fault, the fact that you own the car may make you responsible.
Of course, the more protection you buy means that the price will be higher. Conversely,
the less protection you buy means that the price will be lower. The amount of insurance
protection you buy is up to you. You should consider what you have to lose if you
don't have enough insurance protection when someone points the finger of responsibility
at you. The following are brief explanations of the most common auto insurance coverages:
BODILY INJURY LIABILITY (BI)
This coverage protects you if you are involved in an accident and you caused
bodily injury to others. It also provides you with a legal defense in case someone
sues you because of the accident. If your car is leased, your lease company may
require you to buy higher limits of this coverage. THIS COVERAGE IS REQUIRED TO
DRIVE LEGALLY IN CALIFORNIA.
PROPERTY DAMAGE LIABILITY (PD)
This coverage protects you if you are involved in an accident and you cause damage
to someone else's property. If your car is leased, your lease company may require
you to buy higher limits of this coverage. THIS COVERAGE IS REQUIRED TO DRIVE LEGALLY
IN CALIFORNIA.
UNINSURED MOTORISTS BODILY INJURY (UM or UMBI)
This coverage pays you and other passengers in your car for injuries you may receive
or damage to your vehicle caused by an uninsured driver. THIS COVERAGE IS NOT REQUIRED
TO DRIVE LEGALLY IN CALIFORNIA BUT IS STRONGLY RECOMMENDED.
MEDICAL PAYMENTS (MED or MED PAY)
This coverage pays medical expenses from an accident for you and your passengers,
regardless of fault. This coverage can be in excess of any other health insurance
coverage you may have. However, it will pay your health coverage deductible and
other non-covered expenses from an accident.
COMPREHENSIVE (COMP)
This coverage pays for damages to your vehicle caused by something other than a
collision, such as fire, theft, vandalism, or windstorm. This coverage usually has
a deductible that you pay to offset costs. A higher deductible means a lower price
for this coverage. THIS COVERAGE IS REQUIRED IF YOUR CAR IS FINANCED OR LEASED.
COLLISION
This coverage pays for damages to your vehicle, regardless of fault, when you hit
another car or object. This coverage usually has a deductible that you pay to offset
costs. A higher deductible means a lower price for this coverage. THIS COVERAGE
IS REQUIRED IF YOUR CAR IS FINANCED OR LEASED.
TOWING
This coverage helps offset the cost of towing your vehicle. It usually allows coverage
up to a predetermined amount for each towing incident.
RENTAL CAR REIMBURSEMENT
This coverage helps offset the cost of renting a car while your car is being repaired
because of a collision. It usually pays a predetermined daily amount for a certain
number of days.
|
|
|
|