Protect Yourself and Your Property
Recent studies show that 33% of California drivers are not covered by automobile insurance. Therefore, if you are in an accident there is a 1 in 3 chance the other driver will not be covered. However, if you don’t like these odds there is something you can do about it. Uninsured and underinsured insurance protects you when the other driver is not covered. These insurance options will allow you to insure your own vehicle if you are hit by a driver that is not covered or has too little insurance coverage.
Your Rights to Uninsured Coverage
In California every insurance company is required to include uninsured motorist insurance as part of your insurance policy. The only exception would be if you request in writing to exclude the coverage. Uninsured motorist coverage will cover your vehicle damage cost and any costs related to an injury if the person who hits you has no insurance. However, there are limits to the coverage just like your regular policy. If you carry 15 thousand in property damage coverage and 10 thousand in medical, your uninsured coverage will probably have the same limits.
Find out how much you can save on your California Auto Insurance Rates:
Underinsured Coverage, Protect Yourself
Underinsured motorist coverage will kick in if the person who hits you has a low amount of coverage that does not take care of all your costs. For example, if you have a vehicle worth 25 thousand dollars and it is totaled in a wreck, ten thousand dollars worth of coverage will not fix or replace your vehicle. In this case your underinsured policy can kick in and cover the gap in coverage between how much you are owed and how much the other persons insurance will pay. There are limits to this coverage as well. In most cases the amount of coverage you can select will have to match the amount of your liability coverage.
How Much Coverage Should You Buy?
Choosing the amount of underinsured or uninsured coverage will vary from person to person. However, when it is time to consider your options you will want to examine several factors.
- How much is your vehicle worth and how much do you owe?
- What would a major injury cost you, consider hospital stays and the costs of surgery.
- How much would you stand to lose if you were out of work for an extended period of time due to an injury?
After examining these factors most people find that 300 thousand in coverage is not a stretch. If you are in a major accident you could stand to lose a great deal. When you add the cost of your vehicle, an extended hospital stay, and a month of income together you will probably find this amount is adequate.
Does This Coverage Cost a Fortune?
Many people choose to leave uninsured or underinsured coverage out of their policy due to cost. However, while these additions could cost you a small amount more the cost of not having them could be disastrous. Consider the fact that every time you drive to work you probably pass hundreds of uninsured drivers, and you will see the need for these insurance options.