Types of Car Accident Insurance Coverage outside California Requirement

Each state requires a certain level of car accident insurance coverage before a person can become a legal driver.

In California, the requirement is mostly limited to liability coverage.

Liability coverage pays for injuries or damages in a car accident if you are the one at fault and the minimum insurance requirement in California is:

• $15,000 personal injury liability insurance for vehicles with single occupants
• $30,000 personal injury liability insurance to pay for the total medical expenses of all the occupants of a vehicle
• $5,000 property damage liability insurance to pay for the repair or replacement of destroyed properties.

However, not because the above types of coverage are the only requirement to be a legal driver, it does not mean that you should not get additional insurance coverage as well.

Here is a list of some other types of insurance coverage that would be beneficial to take advantage of.

Uninsured Motorist Coverage

If the liable party in the car accident has no insurance and has limited assets to cover your medical expenses, you will be forced to cough up the money yourself.

This could take a toll on your finances especially if your injury requires serious medical treatment.

Under the uninsured motorist coverage, you will be able to file a claim under your own insurance company if the liable party is not able to meet your expenses for not having insurance or is simply financially incapable.

This type of insurance would also cover hit-and-run accidents where there is no way to obtain the identity of the driver.

Underinsured Motorist Coverage

This is applied almost in the same way as the uninsured motorist coverage except that the driver in this case has insurance but has insufficient liability coverage to pay for all your medical costs.

What will happen is that the insurance company of the liable driver will pay for your medical expenses until the limit of the policy.

Your insurance company, under the underinsured motorist coverage, will pay for the remaining costs.

Collision Coverage

This type of coverage pays for the repair or payment of the dollar value of your car if not repairable in case of a car accident. It is not required under California law but you might be asked to get one if you plan to get a car loan.

Comprehensive Coverage

This is quite similar to collision coverage where it also finances the repair or the replacement of your destroyed car.

The difference lies in the fact that it covers other events outside car accidents like fire, theft, earthquake, vandalism and other weather related incidents.

Roadside Assistance Coverage

This type of coverage pays for the towing services you might need whether it is accident related or if your car just broke down.

Choosing the Right Types of Coverage

When choosing what type of coverage you need, you should consider 3 things:

• What is required by law
• What you need
• How much you can afford

By considering the three, you will get to a combination of insurance coverage that would work for you.