Auto insurance policies typically offer several types of coverage. If you’re looking for a policy, it helps to understand how coverage may apply in different scenarios, so you can make a well-informed decision about the protection you need in your policy. Take a closer look at some of the most common types of coverage offered.
Liability Coverage
Auto liability coverage can provide financial assistance if the policyholder is at fault for an accident that causes harm to third parties (other drivers or pedestrians, for instance). Most states, including California, require drivers to carry minimum levels of liability coverage that typically includes:
- Bodily injury liability—Coverage may pay the medical expenses of injured third parties. Sometimes, it also pays the injured party’s lost wages.
- Property damage liability—When a policyholder causes a wreck, this coverage may pay for a third party’s vehicle repairs or other property damage.
In California, specifically, drivers are required to carry:
- $15,000 bodily injury liability coverage per person
- $30,000 bodily injury liability coverage per accident
- $5,000 property damage liability coverage
And if a driver gets sued following an accident, liability insurance may help cover legal fees and other expenses arising from the lawsuit. Talk to us to learn more about the protection that liability coverage can provide.
Collision Coverage
Vehicle damage caused by collisions with other vehicles or objects can be very costly. Collision coverage may help pay to repair a vehicle or cover the cost of a new vehicle if the insured car is totaled. Typically, lenders require that you carry collision coverage if you have a financed vehicle. However, requirements vary, so speak to an agent to learn more.
Comprehensive Coverage
In addition to collision coverage, you may also need comprehensive coverage. It can pay for vehicle damage caused by hazards not covered by collision—damages such as vehicle fires, severe weather, theft, and vandalism. Like collision coverage, comprehensive coverage is often required if you have financed your vehicle.
Medical Payments (Med Pay) Coverage
Following an accident, medical payments coverage may help cover the injury costs of the driver and passengers of an insured vehicle. It may pay for emergency room costs, surgeries, X-rays, and other costs. Although California doesn’t require drivers to carry this coverage, other states may.
Uninsured and Underinsured Motorist (UM/UIM) Coverage
By having uninsured motorist (UM) insurance, you may be able to protect yourself if you’re involved in a hit-and-run accident or one involving an uninsured driver. In these scenarios, your uninsured motorist coverage can help you cover your injury costs. In some states, it also covers your vehicle damage.
Underinsured motorist (UIM) coverage, which is similar to UM coverage, may provide coverage if you’re involved in an accident involving an individual who doesn’t have enough liability coverage to pay for your injury costs or property damage. Once a claim exceeds the limits of the other driver’s liability coverage, your UIM coverage may pay your remaining expenses.
While California drivers aren’t mandated to carry this type of coverage, in some other states, uninsured/underinsured motorist coverage is required for all drivers. Speak to your auto insurance agent to learn more about how coverage can protect you and your vehicle.
Other Available Coverage
Auto insurance policies may also offer other coverage in addition to the types explained above. These can include roadside assistance coverage, rental car reimbursement, and gap insurance. However, because policies vary, ask your agent to explain the specific protection yours offers.
Ready To Get Auto Insurance?
The different coverages offered by auto insurance policies can help you protect yourself and your vehicle following unexpected hazards. If you want to learn more about how coverages work, RCU Insurance Services can help. Contact us today or get a free auto insurance quote to learn more .