6 Types of Car Insurance Available in California
Types of car insurance you can get in California
Getting into a car accident can be stressful, but being involved in it without car insurance can be a disaster. Even if you pledge to yourself to be careful at all times, it only takes one careless driver to wreck your vehicle or send your way a hefty medical bill. Having valid car insurance can save you all these worries.
In California, there are several types of car insurance available. Here we explain them in detail, and you can get the help of your insurance agent to select the best one, which in turn can save you even thousands of dollars.
1. Liability insurance
This insurance covers you when you are in an accident that is determined to be caused by your actions. If you cause an accident in California without the minimum required liability insurance coverage, then you will be faced with a fine and driver's license suspension of up to 4 years. There are two types of liability insurance.
- Bodily Injury Liability Insurance: This pays for the medical expenses of the injured person involved in the accident that is likely your fault. This coverage can apply to you or anyone else whom you list as a driver in your policy.
- Property Damage Liability Insurance: This covers the repair cost of your vehicle or the other driver's vehicle involved in the accident that you caused.
2. Collision Coverage
Collision coverage will pay for the repair of your car or the value of your car (lesser of two) after your vehicle gets involved in a covered car accident.
It might not mean much to have collision coverage for an old car but if you have a brand new car or a very expensive one then it is best to have collision coverage with limits that can replace your vehicle if a total loss occurs.
3. Comprehensive Coverage
Comprehensive coverage covers the loss that is caused by something other than collisions like theft of your car, fire damage, or damage by animals.
4. Underinsured Motorist Coverage
This insurance covers you when you get into an accident that is caused by a driver who doesn’t have sufficient insurance or no insurance at all. In California, there are about 14% uninsured drivers, which makes insurance essential.
5. Personal Injury Protection Insurance
This covers the medical bill payments for you or the passenger injured in your vehicle. This can also cover the funeral expenses if someone dies and also the lost wages in case the person is injured and has to rest for a long time.
6. Gap Coverage
Gap coverage often gets ignored but actually can save you thousands if you lease the car or have a brand new one. The value of the vehicle reduces with time, and gap insurance covers the difference value between the amount of vehicle loan you owe and the value of your car at the time of the collision.
We at Allied Brokers offer you the benefit of price and coverage comparison. The Allied Brokers insurance agent can help you select the best car insurance which would benefit you the most. To know more, visit us at allied brokers.com
- Apr 16, 2021