Different Types of Personal Injury Insurance
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Simply put, every driver of any vehicle on the California roads that requires a
license plate has to have two types of insurance: personal liability and
property damage. Personal liability
insurance will cover dog
bite injuries,
burn injuries,
car accident injuries or any other type of injury you cause
other people in an accident, and
property damage will pay for damages you cause to other vehicles
and property. You decide the amount each will pay, the more insurance, the more
it will cost in premiums.
Every driver is required to carry personal liability insurance that will pay $15,000
for injury or death to one person, $30,000 for death or injury to more than one
person, and property damage of $5,000. These amounts are pretty low considering
today's costs, and the prudent driver will have a policy that provides far greater
coverage.
Insurance companies also provide additional insurance policies, and if your vehicle,
whether it's a car, truck, or motorcycle, is financed through a bank or other lender,
they may require that you have insurance to cover their interest in the vehicle.
Since the legally required policies mentioned above only cover other people and
property, additional insurance is needed if you want to protect your own medical
expenses or vehicle.
Collision insurance pays for damage caused by a car accident,
truck accident, or
motorcycle accident, no matter
who is at fault. It will cover damage that comes hitting another vehicle or other
object, like a building or pole. The insurance typically has a deductible, which
is the amount you have to pay before the insurance "kicks in." If your deductible
is $250, you have to pay that amount no matter how much it will cost to repair or
replace your vehicle. The cost of collision insurance depends largely on the amount
of the deductible.
Medical payments insurance will pay for the cost of treating you or any designated
driver of your vehicle. The cost of this insurance varies widely because such things
as lost wages or funeral expenses may be included in the policy.
Comprehensive insurance pays for damage to your vehicle that comes from something
other than a motor vehicle accident. It can cover loss or damage that arises from
fires, floods, and theft. The items covered, and they can include everything from
riots to earthquakes, determines the cost of the insurance, as does the deductible
amount.
Uninsured or underinsured motorist coverage will cover any costs you may incur if
you, one of your family members, or anyone you allow to drive your car, truck, or
motorcycle is hit by a hit-and-run driver or by someone who has too little insurance
or none at all. It also frequently covers you when you're a pedestrian.
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