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How Much Car Insurance Coverage Do I Need In California?

Choosing the Right Car Insurance Coverage Amount

The cost of car insurance in California is higher than in the rest of the United States because the state has several factors that make it more expensive to insure individuals and vehicles. For example, California’s strict environmental laws, aggressive personal injury lawyers, and high-deductible bodily injury liability coverage plans have contributed to higher insurance costs. Below we’ll outline some of the most common forms of auto insurance coverage for drivers in California.

Liability Coverage

Liability coverage is required in California, and it protects you from damages and injuries to other people and their property. You can choose the amount of liability coverage you want to purchase. Liability insurance is often referred to as bodily injury liability coverage or property damage liability coverage.

Collision Coverage

Collision coverage is the part of your auto insurance policy that covers damage to your car in an accident. It pays for repairs to your vehicle, minus any deductible you choose to pay (we’ll talk more about deductibles later).

Coverage amounts vary by state and insurer but are usually specified as a dollar amount per vehicle insured. For example: $50,000 or $100,000 worth of collision coverage. That means if you get into an accident and total your car, the insurance company will reimburse you up to that amount—minus any deductible if applicable—and then pay out whatever is left over from what it costs to replace your car with a brand new one like yours in good working order.

It’s important to note here that collision coverage does not include comprehensive or mechanical breakdown protection against things like weather damage or theft—those are separate coverages which we’ll cover later on!

Comprehensive Coverage

Comprehensive coverage provides protection against physical damage to your car caused by theft, vandalism, natural disasters, and other events. This type of insurance is often bundled with collision coverage.

The cost of comprehensive coverage varies depending on where you live and the type of car you drive. It may also depend on whether or not you have comprehensive coverage as part of another policy (such as homeowners insurance). The average cost for this kind of insurance is about $150 per year for a typical sedan with liability only in Los Angeles, according to Consumer Reports 2016 Car Insurance Price Survey. However, if a vehicle has expensive features like GPS navigation systems or leather seats it may be more expensive than average at $250 per year in New York City (again assuming liability-only).

Uninsured Motorist Coverage

Uninsured motorist coverage is a legal requirement in most states. If you’re hit by an uninsured motorist, your uninsured motorist coverage will protect you by paying for your medical bills and other expenses like lost wages. The amount of uninsured motorist coverage you need depends on where you live and how much liability insurance is required by state law. In general, the higher the limit of uninsured motorist coverage, the more money it will pay out if needed (and vice versa).

Some states require drivers to buy uninsured motorist separately from liability coverage; others allow it to be purchased as part of a package policy with liability and other coverages such as comprehensive collision protection or personal injury protection (PIP). Some states require drivers who have purchased their own vehicle insurance policies or have their vehicles insured through their parents’ policies not to purchase separate uninsured motorist policies since those companies are already obligated under state law to provide enough auto insurance protection in case someone gets hurt while using those vehicles.

Medical payments or Personal injury protection (PIP) coverage

Medical payments coverage or personal injury protection (PIP) is one of the most important types of insurance to carry. Some states don’t require drivers to have it, but California does. The good news is that you can get this coverage with a minimal increase in your premium, and it will pay your medical expenses if you’re hurt in an accident.

This type of insurance gives you additional protection beyond what standard liability car insurance provides. If you or any passengers in your vehicle are injured due to another driver’s negligence, PIP provides medical expenses up to certain limits:

  • $1 million per person for all injuries sustained in an accident
  • $3 million per accident

Finding the Right Auto Insurance Policy

As you can see, there are a lot of different types of car insurance coverage out there. We hope this article has helped you understand how they differ and given you some idea of what kind of policy will be most useful for your particular needs.

Let Nickerson Insurance Systems, Inc. get you the proper auto insurance coverage.

Ultimately, you are in complete control of your driving record and it will drastically affect what you pay for car insurance coverage. Give us a call at Nickerson Insurance Services, Inc. and a trustworthy insurance agent will walk you through the process and help you find the most cost-effective policy for your budget.

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