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Understand Your California Insurance Coverage
California living can be expensive— high rent and real estate prices,
skyrocketing electric bills, the cost of filling up your car… it seems like the list
of things that cost you more grows by the minute. California insurance coverage can be
expensive too, unless you know how to make the most of your insurance dollar.
It pays to understand insurance no matter what kind of coverage you're in the
market for. Along with great rates on auto insurance, Esurance offers features to help you
manage your policy and understand more about insurance in general. The Esurance Coverage
Counselor explains California insurance coverage requirements to you, and makes it easy for you to know which
coverages, limits, or deductibles are right for you.
The amount of auto insurance you need as a California driver depends on a variety of
factors. When you choose your coverage limits and deductibles, consider the various risks
that you, your passengers, and your auto are likely to face. You also need to consider the
assets you own, which your coverage helps protect. Drivers who meet certain income requirements
may qualify for the California Low Cost Auto Insurance Program, which offers discounted rates on
basic liability coverage. To learn more, visit the California Department of Insurance or call
1-866-602-8861.
Below are explanations of some of the coverages you'll need to consider as a
California driver when you buy your insurance.
- Bodily injury and property damage
Bodily injury and property damage are the only mandatory coverages in California. Keep
in mind that if you select limits that are too low, you could be putting yourself at risk
financially. For example, if either you or a driver covered by your policy causes a serious
injury or accident where damages exceed your limits, you'll be held responsible for
the amount above your limits.
To make that payment, you could be forced to liquidate property, savings, and other
assets, or your future earnings could be attached. By purchasing liability limits to
account for both your current assets and future net worth, you can help protect yourself
against this risk.
- Uninsured/underinsured motorist bodily injury limits
If the other driver is uninsured, this coverage can generally pay up to the limit you
purchase. If the driver is underinsured, this coverage typically pays the difference
between what's covered by the other driver's insurance and what's covered by
your bodily injury coverage. If the limits you purchase are lower than an accident's
costs, you'll be responsible for paying the amount over your limits, unless
you're covered by health insurance.
- Uninsured motorist property damage
If you don't have collision coverage, uninsured motorist property damage coverage
pays up to $3,500 for repairs to the insured car. If you have collision, uninsured
motorist property damage pays your collision deductible. This coverage alone is not enough
to cover all potential car repair/replacement costs, and only applies if you're
involved in an accident caused by a driver without coverage.
- Comprehensive
If your car is financed or leased, the finance company will probably require that you
carry this California insurance coverage. If you have a newer vehicle or one in excellent
condition, you may need this coverage to replace or repair the vehicle in case of loss. If
you have an older car or one in poor condition, you may not want to pay for this coverage.
These are just a few of the options you should consider when you're buying your
coverage. To find out more about the coverages, limits, and deductibles available to you
as a California driver, check out the Esurance Coverage Counselor. Just enter some
information about your cars and your household, and you'll receive your own personalized
California insurance coverage analysis that instantly that explains what you need and why.
The information in this article is subject to change. Please refer to the Declarations page in your auto insurance policy for information regarding your policy's Terms and Conditions.
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