If you own a vehicle in California, you are required by law to have an active liability car insurance policy on the vehicle. You must have proof of this coverage inside the vehicle at all times in case you are involved in a collision. But, what is liability car Insurance? We will answer this question below:
What Is Liability Car Insurance?
Liability car insurance is a product that California drivers are required to purchase before they may legally drive their vehicles on public roads. A liability car insurance policy indicates that the motorist has the financial means to accept responsibility for a car collision they cause.
Minimum Car Insurance California
The minimum car insurance California requirements include the following:
- Bodily injury liability of $30,000 for one person injured in a collision.
- Bodily injury liability of $60,000 for more than one person injured in a collision.
- Property damage liability of $15,000 for property damaged in one collision.
What Does Liability Car Insurance Cover?
Liability car insurance covers the following:
Bodily Injury Liability
Bodily injury liability covers the economic and non-economic expenses for people injured in a collision caused by the policyholder. Economic expenses include present and future medical bills, lost wages, funeral expenses and burial costs. Non-economic expenses include monetary compensation for pain and suffering as well as psychological distress.
Property Damage Liability
Property damage liability covers the costs to repair or replace the vehicles that were damaged in a collision caused by the policyholder. It also covers additional property damaged in the accident, including buildings, fences or mailboxes.
Liability vs Full Coverage
Liability car insurance covers medical expenses and property repair bills for victims in a collision caused by the policyholder. It does not pay for the policyholder’s or the policyholder’s passengers’ medical expenses, and it does not pay the policyholder’s property repair bills.
Car owners in California may purchase optional coverage that pays their medical bills, their property repair bills and their passengers’ medical bills. The state does not mandate this coverage, but California car owners need to have it. It includes the following:
Collision Coverage
Collision coverage pays to repair or replace your vehicle if you are involved in a collision, no matter who is at fault.
Comprehensive Coverage
Comprehensive coverage pays to repair or replace your vehicle after it has been damaged due to theft, vandalism, hail, fire or collision with an animal.
Uninsured Motorist/Underinsured Motorist Coverage
Uninsured motorist coverage pays your medical expenses and property repair bills if you are hit by an uninsured or hit-and-run driver. Underinsured motorist coverage pays your medical bills and property repair bills if the motorist determined to be the cause of the collision does not have enough insurance to cover all of your bills. The underinsured driver’s policy pays the medical expenses and property repair bills first. After the policy pays the amount it is required to pay, the underinsured motorist coverage pays the remainder of the bills.
At Ace Tech Collision Center, our collision repair services are covered by all major insurance companies. Book your appointment today!
