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Auto Insurance - Main Coverage Options And Explanation Of Coverages


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									Auto Insurance - Main Coverage Options And Explanation Of Coverages

Main Coverage options and explanation of coverages
Heres a basic and simple explanation of the main coverage options associated with
auto insurance in California.

 Liability Insurance
 Liability basically covers what youre liable for. If you caused damage to another
vehicle, person or property then your insurance company will pay for what you were
held liable for up to your policy limits. The minimum limits required in California for auto
insurance are 15/30/5. 15/30/5 Insurance is short for $15,000 per person for bodily
injuries, $30,000 max per occurrence for bodily injuries, and $5,000 max for property
damage. You are still liable for damages above what the insurance company pays so
be sure to protect your assets. For homeowners, a minimum of 100/300/50 is
recommended. Also, if you vehicle is leased, your leasing company is likely to require
that you have a minimum of 100/300/50 liability insurance coverage.

 Uninsured Motorist (UMBI & UMPD)
 Uninsured motorist is an optional but highly recommended coverage. Even with it being
a law to carry liability car insurance, many motorists simply cant afford it. Uninsured
motorist coverage will protect you up to the policy limits in the event an uninsured
motorist collides with you. For uninsured motorist to provide coverage it is required that
someone be held liable for hitting you. In the event of a hit and run, at least a license
plate number must be obtained for this coverage to kick in. Uninsured Motorist Bodily
Injury (UMBI) starts off at limits of 15/30, $15,000 per person with a maximum of
$30,000 of coverage per accident higher limits are available. This means that if an
uninsured motorist is held liable for the accident, your insurance company will pay you
and your passengers for bodily injury incurred up to your policy limits. Your company
may also provide this coverage for under insured motorists which means that if the
person that hit you doesnt have enough coverage to cover your injuries; your company
will come in as the secondary and cover the difference up to their limits.
 Uninsured Motorist Property Damage (UMPD) is usually $3500 in coverage. If an
uninsured motorist was held liable for your accident, your company will pay up to $3500
for repairs to your vehicle. If you have purchased collision coverage on your policy then
your UMPD coverage becomes a collision deductible waiver which means this coverage
will pay the deductible on your collision coverage.

 Medical Payments
 Medical Payments provide coverage up to the policy limits for medical bills resulting
from an accident regardless of fault. You can purchase medical payment limits from
about $1,000 to $10,000. Lets say you chose to buy $1,000 medical payment limits,
each person in your car would be covered up to $1,000 per accident. Medical payments
are optional and not required.

Comprehensive & Collision (Comp/Coll)
Comprehensive and Collision coverage on your auto insurance policy is the part that
covers your vehicle. Collision coverage covers your vehicle in the event of an accident
while youre driving. Comprehensive coverage also know as other than collision
coverage covers your vehicle for damages that may happen when youre not driving
your vehicle such as fire, theft, vandalism, tree falling on your car, etc. These coverages
dont have limits to purchase; they work with choosing a deductible. A deductible is the
amount you pay first, and then the insurance company covers the rest. The most
common deductible options chosen are $500 and $1000. The lower your deductible,
the higher your premium will be since the insurance company covers more. If your
vehicle is financed or leased, your financing company will require you to carry these
coverages until the car is paid off.

 Rental & Towing
 Rental coverage will cover the costs of renting a car up to the policy limits in the event
your vehicle is not drivable or in the body shop resulting from an accident. Youll usually
see numbers such as 20/30 or 30/40 when it comes to choosing the limits for this
coverage. The first number is how much they will cover per day, the second number is
the maximum number of days they will cover for. 20/30 means that your auto insurance
company will pay $20 per day up to a maximum of 30 days. Towing coverage will cover
you for towing your car as a result of an accident up to the policy limits. Limits are
usually listed as a dollar amount of $50 or $100 which means that youre covered up to
that amount for towing per disablement. Remember that these coverages only take
effect in the event of an accident and are not a roadside service. Most companies now
offer roadside service as an optional coverage.

 Other coverages and options
 Other coverages and options vary company to company. Please check with your
company or agent to see what options are available to you. OnGuard Insurance is an
authorized producer of multiple auto insurance companies in California so coverage
with us varies from carrier to carrier as well.

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