Vehicle Insurance Policies
Reader’s Question:
I want to learn more about vehicle insurance policies. What are the basic and customized automobile policies for California?
Kevin
San Diego, CA
Vehicle insurance policies could be intimidating to read at times. So, let us try to start with the basics. Your vehicle insurance is really a collection of smaller pieces of coverage. The mandatory liability insurance or the insurance that you pay for in case you “cause damage” in a vehicle accident in the State of California is read as 15/30/5. The three numbers cover bodily injury and property damage liability. Decoding these three numbers simply mean that your insurance pays for bodily or personal injury maximum of $15,000 per person up to a maximum of $30,000 for all injuries in one event and maximum limit of $5,000 for property damage for the same accident. Other states have extended requirements, but they do not concern us here. Most of the time, the basic insurance is not enough. Most people also get protection for themselves and their cars, so they also purchase collision and comprehensive insurance coverage. Basically, these two protect you from any damage caused in a vehicle accident. The Collision coverage in a vehicle insurance policy applies to your regular fender benders or any damaging contact you would have with another vehicle. Comprehensive insurance, on the other hand, is for any other events that could damage your car such as the extreme weather (like storms), vandalism and/or theft.