Auto Insurance Coverage Explained:

1. Bodily injury liability: provides protection if you injure or kill someone while operating your car. It also provides for a legal defense if another party in the accident files a lawsuit against you. Bodily injury liability covers injury to people, not your vehicle. Therefore it’s a good idea to have the same level of coverage for all of your cars. THIS COVERAGE IS REQUIRED FOR YOU TO DRIVE YOUR CAR LEGALLY IN CALIFORNIA.

2. Property damage liability: this covearge protects you if your car damages someone else’s property. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object. THIS COVERAGE IS REQUIRED TO DRIVE LEGALLY IN CALIFORNIA.

3. Medical payments: no-fault or personal injury protection coverage usually pays for the medical expenses of the injured driver and passengers in your car. There may also be coverage if you are injured by a vehicle as a pedestrian.

4. Uninsured motorists: this coverage pays for your injuries caused by an uninsured driver or, in some states, a hit-and-run driver, in a crash that is not your fault. In some states there is also uninsured motorist coverage for damage to your vehicle. Given the large number of uninsured motorists, this is very important coverage to have, even in states with no-fault insurance. THIS COVERAGE IS NOT REQUIRED TO DRIVE LEGALLY IN CALIFORNIA BUT IS STRONGLY RECOMMENDED.

5. Comprehensive physical damage: this coverage pays for losses resulting from incidents other than collision. For example, comprehensive insurance covers damage to your car if it is stolen; or damaged by flood, fire or animals. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket. THIS COVERAGE IS REQUIRED IF YOUR CAR IS FINANCED OR LEASED.

6. Collision: this coverage pays for damage to your car when your car hits, or is hit by, another vehicle or other object.
To keep your premiums low, select as large a deductible as you feel comfortable paying out of pocket. For older cars, consider dropping this coverage, since coverage is normally limited to the cash value of your car. THIS COVERAGE IS REQUIRED IF YOUR CAR IS FINANCED OR LEASED.

7. Rental reimbursement: coverage pays for a rental vehicle (usually up to $25 a day) when the insured's vehicle is out of commission as a result of a loss covered under comprehensive or collision coverages. THIS COVERAGE IS REQUIRED IF YOUR CAR IS FINANCED OR LEASED.