California Auto Insurance Coverages
Automobile Liability Insurance
Bodily injury liability and property damage liability are often grouped together and called automobile liability insurance. Liability is the financial responsibility to pay for injuries and damages to others.
Bodily Injury (BI) Liability Coverage (*required in California)
Bodily injury liability provides payments for injuries or death to people other than the driver responsible for the accident, including passengers in the driver’s auto. This coverage does not pay for any bodily injury to the responsible driver.
Property Damage (PD) Liability Coverage (*required in California)
Property damage liability pays for damages to property caused by the responsible driver. In most accidents, the property damage is to the other driver’s car. But property damage may include damage to people’s buildings, fences, garage doors, and other features such as telephone poles, for example.
(*BI and PD coverage beyond that required by California law is often purchased under what is called an Umbrella policy; an Umbrella policy can provide additional liability insurance on one’s auto insurance, homeowners insurance, boat owners insurance, etc.)
Collision Coverage (optional in California)
Collision coverage pays (up to the limit purchased) for damages to your auto caused by an accident with another vehicle or object, such as a fence or tree. Collision covers your auto if you hit a road bump or drive over a pothole that severely damages it.
Comprehensive Coverage (optional in California)
Comprehensive coverage provides payments (up to the limit purchased) for damages not caused by a collision, and may include the following:
- Damage by acts of nature such as hail, fire, flood, and earthquake.
- Damage by falling objects, including broken windshields.
- Vandalism and loss of your auto by theft.
Uninsured/Underinsured Motorist Coverage (optional in California)
UM and UIM coverages pay the driver and other passengers in the vehicle who are injured in an accident caused by an uninsured (UM) or underinsured (UIM) driver, or by a hit-and-run driver. This coverage can also be extended to include damage to the auto, but collision and comprehensive coverages already would likely pay for such damage.
Medical Payments (MP/MedPay) Coverage (optional in California)
MedPay covers doctor and hospital bills as well as funeral expenses for the driver and passengers in the driver’s auto, no matter who is responsible for the accident. Some of these expenses may already by covered by personal health insurance plans.
Personal Injury Protection (PIP) Coverage
PIP pays for medical costs, lost wages, necessary services that would normally be provided by the injured driver, such as childcare, and funeral expenses. PIP coverage is usually purchased in states with no-fault insurance systems, but many California drivers also purchase PIP.
Optional Convenience Coverages
Insurance companies also offer other optional coverages such as rental reimbursement if you have to rent an auto while yours is being repaired or replaced; roadside assistance, if your auto needs to be towed from the scene; or trip interruption coverage if your road trip is halted by an auto accident or breakdown, and you have to accrue unexpected expenses, such as for food and lodging.
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