Car insurance (comprehensive insurance, for example) is usually a necessity, and one of the typical financial responsibilities most of us take on as soon as we purchase our first car. Not only can it be expensive in some cases, it can also be hard to understand as you wade through trying to figure out which details you need in a sea of different coverages, deductibles, limits, and so much more. While not every state asks you to carry insurance by law, California does require you to have the following:
- Bodily injury liability
- Property damage liability
- Uninsured motorist bodily injury coverage
And while both collision and comprehensive insurance are optional, most of us have at least one or both; in fact, if you have financed a car they may require that you carry ‘comp and collision’ until the balance of the vehicle loan has been paid off.
No matter what types of insurance you are purchasing, it may be tempting to get the bare minimum with the lowest premiums—and as we all know, even that can be high! Collision insurance is not hard to understand, just based on the term itself. If you collide with someone or something—in an accident—your collision coverage (assuming your policy is in force and there are no other extenuating circumstances) will kick in whether you hit another car, an inanimate object, or even a pothole. Deductibles vary. You may not have one at all, but of course that raises the rate of your premium. If you have a $500 deductible in the case of a collision, you would have to pay that before the insurance kicked in to have your car fixed.
Comprehensive insurance covers collisions with different types of obstacles such as animals or falling objects. Along with that, you also have coverage for theft, vandalism, natural disasters, and more. There are limits as to how much it will cover, and again, you may or may not have a deductible—depending on how much you want to pay for a premium.
If you aren’t sure about what types of coverage are best for you, have an in-depth discussion with your insurance agent and consider how much your car is worth, how much time you really spend on the road, and what your budget can realistically afford, whether you pay your insurance by the year, quarter, or month.
Are you concerned about a recent accident, or are you trying to understand your insurance policy? If a dispute over a claim cannot be easily resolved through a call or written communication, the Bolender Law Firm will advocate on behalf of policyholders through litigation, arbitration, or non-binding mediation. Our attorneys are experienced in representing clients in state and federal courts, at both the trial and appellate level. Call us at 310-320-0725 now or submit an easy consultation request online. We are here to help!