Types of insurance and information on premiums
The minimum liability amount for compulsory insurance varies by state. In California the amount is $15,000 for injury/death to one person, $30,000 for injury/death to two or more people, and $5,000 for damage to property.
Bodily Injury Liability
Covers lost salary or medical expenses due to injury or death in an accident for which you are responsible. Note that this coverage is not sufficient in cases of severe injury or death to the other party.
Property Damage Liability
Covers property or belongings damaged in an auto accident.
Covers medical expenses for drivers or fellow passengers injured in an auto accident. This insurance covers you whether you are driving your own car or someone else’s vehicle.
Uninsured / Under Insured Motorist
Covers expenses when the person responsible for the accident is:
- unidentified (hit-and-run)
- under insured (does not have sufficient insurance coverage to compensate for damages)
Comprehensive / Optional
Covers damages in single-car accidents (including those due to theft, fire, falling objects, flying rocks, lightening, earthquakes, and flooding).
Collision / Optional
Covers repair costs in single-car accidents. Getting comprehensive and collision coverage can nearly double your insurance costs, but we strongly recommend buying this additional coverage if you can afford it.
Road Service / Optional
Covers towing to a service workshop if your car will not run.
Rental Car / Optional
Covers rental car expenses during repairs if your car is damaged in an accident.
The following factors can affect your monthly insurance payments:
- Address (different neighborhoods have different premiums)
- Marital status
- Family status
- Driving history
- Accident/violation history
- How you primarily use your vehicle (e.g. commuting to work, commuting to school, shopping)
- How much you drive on a daily basis (e.g. if you commute to work, the distance between your home and office)
- Age of vehicle
- Airbags Security system (alarm)
- Anti-lock brakes (ABS)
- Number of doors
- Where the vehicle is usually parked (street vs. garage)