Liability Versus Full Coverage
Most people think that it’s just liability only versus full coverage, but there’s a lot in between and you probably don’t even know what full coverage or liability only is in the the first place. So let’s go through the different types of coverage so that we make sure you have the right type in the case you get in a car accident all right because you need to understand that the type of coverage you have on the date of the accident is the one that applies. So if you got an accident on Tuesday and then you switch your insurance on Wednesday, the new insurance doesn’t apply. Coverage doesn’t backdate. They can turn to having a date of loss on the date of the accident is the one that applies.
So let’s start off with the lowest level of insurance which is required under California law it’s called liability-only coverage. What that literally means is is that your insurance will only be involved in any way if it’s your fault, meaning they will pay for the other cars damage to their property and for their bodily injury if it’s not your fault and you have liability coverage only. Your insurance will determine you don’t have any fault meaning you have no liability and then they’ll tell you good luck you’re on your own go deal with the other car and their insurance.
A Very Dangerous Situation To Be In
It’s a very dangerous situation to be in. Why? Because if the other car is driving illegally, meaning without car insurance, then you’re in a lot of bad luck. Why? Because presumably the guy that hits you that has no insurance probably doesn’t have the monetary means in the first place to pay for the damage to your car, to pay for your medical bills, to pay you for your pain and suffering. So if you have liability only, switch it. If you can’t switch it because of monetary reasons, contact a broker see what could be done to at least get some type of coverage above liability only. It’s just a very dangerous situation.
Next level up is always called full coverage. But there are different levels of full coverage. We’ll start at the bottom as well. The lowest level of full coverage is where you have No Rental Full-Coverage, meaning that your own insurance won’t put you in a rental. Rather, you would have to come out of pocket and then the at-fault car insurance will pay you back at the conclusion, and that’s annoying and difficult because you’ve got to come out of pocket the rental for whatever amount of days your cars in the body shop. It adds up to several hundred dollars.
If you don’t have the monetary means then we have a problem. So you always want to try to get at least rental coverage. Normally it’s $30 a day for 30 days. It doesn’t cost that much more to get it either so definitely look into it.
Under-Insured/Un-Insured Motorist Coverage
Then you have what is called Under-Insured/Un-Insured Motorist Coverage. What that literally is is if the car that hits you is at fault and doesn’t have enough insurance, or doesn’t have any insurance, your insurance will act as the insurance company for the other car. It’s very important. Uninsured Motorist means that the car that hits you was driving without insurance. They were uninsured so that what happened is is that your insurance will act like the other car’s insurance. They’ll pay for your monetary damages, they’ll pay for the property damage, they’ll pay for everything. Just imagine your insurance is theirs.
The thing is you have different levels of uninsured motorist coverage levels, meaning different amounts of money that the insurance will pay if the other car is without insurance. It starts off at the minimum, which is only $15,000. It’s pretty, pretty low. It’s a hospital visit if, God forbid, you need to go to the hospital. It goes as high as you can pay- millions of dollars. Obviously the higher you are financially, the higher level of insurance you should get because you want to make sure to protect yourself. A lot of people think that car insurance is meant in case you caused an accident, but just like life insurance, health insurance, fire insurance, it’s meant to protect yourself against others. So get a copy your deck page that pages the declarations page where it declares all the different types of coverage you have bring it over to us.