Understanding California Automobile Insurance

Liability coverage protects against covered claims by others

Liability insurance addresses covered injuries or property damage for which an insured is responsible, subject to the policy and applicable law. California's standard minimum liability requirements are $30,000 for injury or death to one person, $60,000 for injury or death to more than one person, and $15,000 for property damage.

These minimums do not establish the amount of coverage in a particular claim. Policies may have higher limits, additional insureds, exclusions or other issues. Do not assume a driver's first statement about coverage is complete.

Collision and comprehensive coverages concern your vehicle

Collision generally addresses covered collision damage to your own vehicle. Comprehensive generally addresses covered non-collision losses, such as theft or certain weather damage. Deductibles and exclusions can apply.

A vehicle's repair or total-loss evaluation is separate from the bodily injury evaluation. Save photographs, repair information, valuation documents and receipts. Ask about rental benefits and any limits that apply.

Uninsured and underinsured motorist coverage need careful review

Uninsured motorist bodily injury coverage may apply when an at-fault driver lacks applicable insurance. Underinsured motorist coverage may be relevant when the other driver's coverage is insufficient. Eligibility, limits, offsets, notice requirements and policy terms need review; UIM is not a promise to pay the difference between every loss and the other driver's payment.

Ask your attorney before signing a release that could affect additional coverage. Notify the office about hit-and-run facts and requests from your own insurer promptly.

Medical payments coverage and health insurance serve different roles

Medical payments coverage may help with covered medical expenses subject to policy limits and terms. Health insurance may also pay for treatment. Payment by one source can create questions about reimbursement, coordination or other rights.

Keep explanations of benefits, payment notices and bills. Do not assume that insurance payment eliminates every balance or that every charge is recoverable from the other driver.

GAP and financing questions

A total-loss payment may not equal the outstanding loan balance. GAP protection may address a qualifying shortfall, subject to its own terms. Review the actual agreement rather than assuming every financed vehicle has that protection.

Before giving a statement or accepting payment

Identify who is requesting information and what claim the payment resolves. Send our office proposed releases and coverage letters. Accurate reporting and timely notice can be important, but the appropriate response depends on the request and your obligations.