How Much California Auto Insurance Coverage Do You Really Need?

When times are tough, people look for ways toCalifornia roadways. You must carry evidence of
cut down on monthly bills and save dollarsinsurance coverage at all times.
wherever they can. Some people decide to carryLiability insurance is the insurance required by law.
the minimum amount of automobile insuranceHowever, you should always carry uninsured and
required by law. Some even discontinue insuranceunder-insured insurance coverage. This protects
coverage and drive with no coverage at all. Theyou if you are injured by an at-fault driver who
Insurance Research Council has predicted that thedoes not have any insurance, or does not have
national uninsured driver rate will increase to moreenough insurance coverage to cover your injuries.
than 16% in 2010.Uninsured Motorist (UM) and Underinsured Motorist
Always Have Enough Insurance Coverage(UIM) coverage also covers your costs if you are
It is important to remember that the purchase ofhurt by a hit-and-run driver. The amount of UM
auto insurance coverage is essential for your ownUIM coverage available is subject to your policy. In
protection, and protecting your family and yourother words, you decide how much you want to
financial assets. A common question frequentlypurchase.
posed to personal injury attorneys is: "How muchHow Does UM/UIM Coverage Help?
insurance coverage do you really need?" The bestExample: You have an UM/UIM policy limit of
answer to that question is: purchase as much$100,000. You are seriously injured in an accident
insurance coverage as you can afford. Andwith $80,000 in medical bills. The driver at fault for
always have uninsured/underinsured coverage.the crash only had $40,000 in liability coverage.
California Insurance RequirementsYou would then collect $40,000 from the at-fault
The minimum liability insurance requirements fordriver's insurance policy. Your own insurance
private passenger vehicles is set forth in Californiacompany would compensate you the remaining
Insurance Code §11580.1b. Liability insurance$40,000. If you did not have the UM/UIM
compensates a person other than the policyholdercoverage, you would only receive the driver's
for personal injury or property damage.liability insurance limit. If the driver had no
Comprehensive or collision insurance does notinsurance at all, and you did not have UM/UIM
meet vehicle financial responsibility requirements.coverage, you would not receive any insurance
The minimum amount of liability insurance youcompensation. This is why it is so important to
must have by law is $15,000 for injury/death toprotect yourself. You have no control over
one person; $30,000 for injury/death to morewhether or not the driver the car that hits you
than one person; and $5,000 for damage tohas insurance coverage. Injuries sustained in a
property. Financial responsibility (liability insurance) isserious accident can cost hundreds of thousands
required on any vehicle operated or parked onof dollars.