In California, auto insurance is required by law to own and operate a motor vehicle. Failure to carry insurance can have dire consequences, which include fines, driver’s license suspension, and jail time for repeat offenders. Wai Cheng Insurance Inc. in Bay Area, CA offers you the following guide to navigate auto insurance policies.
Auto Insurance Requirements
Insurance requirements vary by the state that the vehicle is registered in with California mandating that drivers have the following minimum liability coverage:
- $15,000 Injury Liability (per person)
- $30,000 Bodily Injury Liability (per accident)
- $5,000 Property Damage Liability
If this coverage does not sound adequate, that’s likely because it isn’t. In a vehicle accident that involves a third party, you’ll quickly exhaust your liability limits if you only carry the minimum which could leave you on the hook for thousands of dollars in fees and expenses.
Although not required like liability, optional auto insurance coverage includes the following:
- Personal Injury Protection: Pays for the medical costs for you and any passengers in an accident, regardless of fault.
- Uninsured/Underinsured Motorist: If you are in an accident with an uninsured driver, this coverage will help pay for any fees associated with repairing your vehicle or medical bills that cannot be recouped from the other party because of their lack of insurance.
- Collision: Pays for damage to your vehicle after an accident and includes a deductible which is the amount you pay first before the insurance company foots the remainder of the bill. If you are leasing or financing your vehicle, you’ll likely be required to have collision coverage.
- Comprehensive: If your vehicle is damaged by anything other than a collision including storms, theft, vandalism, or wildlife this coverage will pay for the repairs minus your deductible.
To learn more about your California auto insurance requirements, contact Wai Cheng Insurance Inc. in Bay Area, CA. We’ll help you find the right insurance for your needs at a price you can afford.