What Does My Car Insurance Mean?
There are over 228 million people who are licensed to drive in the United States. 28 million of those people are in California where it is required by law to have car insurance.
Most people in California couldn’t even tell you what type of car insurance they have or what the different types of insurance are! This is why it is so important to have a personal injury attorney who specializes in car accidents, so that they can simplify the complicated world of car insurance when you need to use it.
Razavi Law Group can help evaluate your case and explain exactly what the insurance you pay for will cover and what you are leaving yourself exposed to. Here is a breakdown of the common types of insurance we see here:
Liability insurance covers injuries to another person or damage to their property due to an accident you caused. This does not protect your own injuries or your own property damage.
This type of insurance covers vehicle repair and replacement costs even if you are at fault. It covers theft, damage from hail, fire, vandalism, or collision with an animal as well.
This type of insurance helps cover the cost of medical bills for you and your passengers if you were involved in an accident at the fault of the other driver, but they do not have enough insurance to cover you or don’t have insurance at all.
For example, imagine you get into an accident and incur $100k in medical bills, but the “at fault driver” only has a $30k insurance policy. If you have Underinsured Motorist Coverage, then your own insurance will cover the rest of your medical bills.
This type of insurance will cover gaps in Lyft and Ubers insurance policies. It will offer you a more complete protection package for your situation. Please ask your insurance company to see what options they offer.
If you drive your car a lot (like in ride-sharing) then it will depreciate quicker. This coverage will protect you if your car is totaled, but the value is less than what you still owe on the loan.
Medical Payments Insurance
This type of insurance covers medical expenses due to a car accident including your deductible. This is especially important if you do not have health insurance. If possible, you should have enough insurance coverage to protect all of your assets including your car, home, property or anything else of value that could be exposed in a major accident that is your fault.