Car premiums are presently much higher than what they were last year, given the economic scenario. You should choose your car insurance policy from a variety of car coverage offered by insurance companies based on the type of car you own and the level of protection you need and your affordability. It would be helpful if you know the exact types of car coverage insurance policies offer, to the choose the best one that suits you.
The mandatory minimum liability car coverage according to California Law is
1. Liability Bodily Injury - $15000 – per person coverage
2. Liability Bodily Injury - $30000 – per accident coverage
3. Property Damage Coverage - $5000 – Other cars and other types of property
There are several other car coverage options in California. What they cover and their relevance are discussed in the following paragraphs.
Collision coverage
Collision coverage is optional in California and helps claim damages when the car is hit, regardless of whose fault it is. It is best suited for new, expensive cars or cars financed by a loan. People who insure old or indifferently maintained vehicles usually do not opt for this car coverage. Collision coverage, in California can be sought only if you have comprehensive car coverage too. This policy covers payment for (a) replacement or repair to damage of car caused by rolling over or colliding with other vehicles and (b) cars that come under California auto insurance policy
Uninsured Motorist Property Damage (UMPD)
The insurer pays for collision deductible if you have collision coverage and up to $3500 if you do not have collision coverage. It is not on par with collision coverage as it only safeguards against damages caused by collision by an uninsured vehicle.
According to California auto insurance law you are eligible for UMPD even if there is no police report after the collision. Instead you have to (a) identify the uninsured driver or (b) report his license number
Comprehensive coverage:
This car coverage is issued as a part of a policy plan for first party ‘physical damage’ for your car. Bodily injury coverage is a must if you want to have comprehensive coverage. This is required if you also want collision coverage.
Your car is insured against (a) being stolen (b) damages (not caused by collision ) caused by natural disasters, intentional damage by caused by vandalism, fallen objects, animal collision, broken glass, or fire).
Just as in the case of collision coverage, only owners of cars that are financed, leased, new and in excellent condition usually opt for this car coverage.
Rental Car Coverage
When you rent a car, in California, it needs insurance. If you are already covered for a comprehensive package and have collision coverage for your own car, this may be enough to help you opt for rental insurance. .
This car coverage reimburses the cost of the rental car you are not driving because of it being damaged in a mishap or being stolen. You can see the listing of the maximum amount that will be reimbursed, per day, per accident on related California car coverage websites.
Customized Equipment Coverage
This package is available for those who are already insured for Comprehensive and Collision plans in California. The equipments that qualify for this cover are customized wheels, stereo sound system, running boards, fog lights, television, trailer hitches and so on. This policy reimburses the minimum value for repair, the cash value of equipments and their declared value in case of damage or theft.