There is No Such Thing as Full Coverage
When I ask clients what kind of auto insurance coverage they have I often get the answer of “full coverage.” That is not a term used by the insurance companies, and it is not a term used by attorneys. Insurance policies are extremely complicated and there are a large number of ways to build an auto insurance policy. Usually clients use the term “full coverage” to mean they have liability insurance. However, that is a poor description since liability insurance is the most bare bones policy you can get.
What is Liability Coverage?
Liability coverage simply means that you have insurance to coverage damages to a third-party if you cause an accident. In California, the current state minimum for bodily injury is $15,000 per person and $30,000 per incident. Liability coverage does not get you a rental vehicle, it does not pay for your own vehicle repairs if you are in an accident, it does not pay for your own medical bills, and it does not pay for your own pain and suffering. For example, if you carry liability insurance and you are hit by an uninsured motorist, your insurance policy will pay you NOTHING.
What is Collision and Rental Coverage?
Collision and rental coverage cover your vehicle repairs and a rental for you in the event you are in an auto accident. If you have collision coverage and you are hit by an uninsured driver your insurance will pay to repair your vehicle. With rental coverage, most policies will have a daily limit and total dollar amount limit (many times it is $30/day for 30 days maximum). If you have a vehicle worth more than a few thousand dollars you should be carrying collision coverage.
Uninsured and Underinsured Motorist Coverage
This type of coverage protects you if the driver of the other vehicle does not carry insurance or has too little insurance. Uninsured motorist coverage covers your personal injury, medical expenses, and lost earnings, and is separate from collision coverage. That means if you are hit by an uninsured driver you will need both collision coverage and uninsured motorist coverage to get your car fixed and your injuries paid for. In order to collect money if you are hit by an underinsured driver, your underinsured motorist policy must be larger than their policy. For example, if you are hit by a driver with a $15,000 policy and you have a $50,000 underinsured policy, you can collect up to $35,000 from your own insurance after you secure the $15,000 from the other driver.
Medical Payments Coverage
Usually referred to as Medpay by attorneys and adjusters, medical payments coverage is coverage available to pay for your medical expenses, regardless of who is at fault. Medpay is either regular or excess. An excess Medpay policy means that you cannot access your Medpay money until you have exhausted all other forms of medical coverage (usually that means health insurance). Regular Medpay can be secured even if you have health insurance and simply decline to use it. The most common Medpay policies are $1,000, $5,000, and $10,000, although larger policies are available.
For more information on California insurance policies contact an experience Personal Injury Attorney for a free consultation.
