Learn About the Nuances of Car Insurance in California
I’m Ed Smith, a Fresno car accident lawyer. Having the appropriate car insurance is mandated by the state and expected by other drivers. However, many drivers know little about the types of insurance they should have and what to do if they are in an accident by an uninsured driver.
Required Car Insurance in California
The state requires that a driver insure his or her vehicle. Basic requirements are:
- Liability coverage for bodily injury: You must have a minimum of $15,000 for each person and $30,000 for each accident.
- Damage to property: You need a minimum of $5,000 in property damage.
- Bodily injury damage from an uninsured motorist: If you are in an accident with an uninsured motorist, you need to be covered for the same amount as your liability coverage, which is $15,000/$30,000.
- Property damage from an uninsured motorist: The property damage for an uninsured motorist is $3,500.
Amount of Liability Insurance You Need
Liability insurance covers you when you are responsible for an accident that causes financial loss such as medical expenses for another driver or their passengers. The amount of insurance you buy over the minimum depends in part on your ability to purchase higher limits. However, if you can, the recommended amount is 250/500. This means in the event of an accident, your insurance will pay out up to $250,000 per injured person in a single occurrence or accident and an upper limit of $500,000 per occurrence. If you have this coverage, you can add a $1 million umbrella policy to your car insurance. This protects you in case of injuries caused by car collisions and accidents that happen on your property. If you own a boat, it also covers accidents involving the boat. You may have to add a $100,000 liability limit for property damage to your liability coverage.
Uninsured Motorists
Today, so many motorists lack liability insurance or are underinsured, you may have a problem covering expenses if you are hurt in an accident or if your property is damaged. Having uninsured/underinsured motorist insurance protection can help by covering you in the case of an accident. Medical payments coverage, or Med Pay, covers you or any passengers in your vehicle if injured. There is no waiting for medical coverage, and immediate payout is permitted regardless of who was responsible for the accident. Med Pay starts at a minimum of $1,000 but $10,000 is recommended.
Are You Required to Buy Uninsured Motorist Insurance?
The insurance company is required to offer it to you. You do have the option to turn it down. If you turn it down, you have to sign a waiver saying it was offered, and you decided against it. This frees the insurer from liability and places the onus on you. Let’s say you are in an accident with an underinsured or uninsured motorist, and you do not take the coverage. You are responsible for paying any medical bills or other costs due to an accident after reaching the limits on your policy. Trying to secure payment for the rest from an uninsured driver is daunting since in most cases they lack the financial capacity to pay the bill. Since one out of eight vehicles is driven by an uninsured driver, not having underinsured and uninsured insurance is a bad idea.
Liability Coverage
As you can see above, a motorist must have liability coverage. This covers others who are hurt in a car accident where you are the negligent party. It does not pay for injuries you may incur nor does it pay for members of your family.
You cannot register your vehicle without liability insurance and not having it is illegal. If you are stopped for a traffic infraction and you do not have liability insurance, you will receive a citation, and your license might be suspended. In some cases, your car or truck could be taken from you and impounded. Staying current on insurance payments is important because if you let them lapse, the insurer will let the DMV know about it.
What Liability Limit Should I Obtain?
That is a personal decision, aside from the required limits. However, if you cause an accident and cause injury or property damage that exceeds your liability limit, you may have to pay the injured party out-of-pocket. Because of this, some drivers have a higher liability limit.
Other Types of Coverage You May Opt For
There are other types of coverage you can get to supplement basic liability coverage. These protect you from being uncovered if the other driver is uninsured or if you are in a single-vehicle crash. One such type of coverage is known as medical payments insurance coverage. This covers medical costs immediately no matter who is at fault. It can also be used to pay for burial costs, funeral expenses, and other end-of-life expenses that you or your family incur.
Coverage for Physical Damage
This is a combination of two types of coverage known as collision and comprehensive. Collision covers damages that result from a collision whether it is with a tree or another vehicle. Comprehensive covers other causes of damage to your vehicle such as flooding, theft, hail, or fire.
Fresno Car Accident Lawyer
I’m Ed Smith, a Fresno car accident lawyer. Sorting out insurance issues can be complex, and knowing what is or isn’t covered after an accident when you’ve suffered catastrophic injuries such as brain trauma can be daunting for you or your family. Call me for friendly and free advice at (559) 377-7676 in Fresno or nearby. If you are away from the area, call me at (800) 404-5400.
I’ve practiced injury law in California for over 32 years and have aided many Northern Californians and those in Fresno with issues such as wrongful death, truck accidents, farming accidents, and amputation injuries.
The milliondollaradvocates.com is a group of trial lawyers chosen by their ability to provide top-notch legal services and who have won $1 million or more for their clients. I am a member from the state of California.
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