How Much California Auto Insurance Coverage Do You Really Need

When times are tough, people look for ways to cut down on monthly bills and save dollars wherever they can. Some people decide to carry the minimum amount of automobile insurance required by law. Some even discontinue insurance coverage and drive with no coverage at all. The Insurance Research Council has predicted that the national uninsured driver rate will increase to more than 16% in 2010.Always Have Enough Insurance CoverageIt is important to remember that the purchase of auto insurance coverage is essential for your own protection, and protecting your family and your financial assets. A common question frequently posed to personal injury attorneys is: "How much insurance coverage do you really need?" The best answer to that question is: purchase as much insurance coverage as you can afford. And always have uninsured/underinsured coverage.California Insurance RequirementsThe minimum liability insurance requirements for private passenger vehicles is set forth in California Insurance Code §11580.1b. Liability insurance compensates a person other than the policyholder for personal injury or property damage. Comprehensive or collision insurance does not meet vehicle financial responsibility requirements. The minimum amount of liability insurance you must have by law is $15,000 for injury/death to one person; $30,000 for injury/death to more than one person; and $5,000 for damage to property. Financial responsibility (liability insurance) is required on any vehicle operated or parked on California roadways. You must carry evidence of insurance coverage at all times.Liability insurance is the insurance required by law. However, you should always carry uninsured and under-insured insurance coverage. This protects you if you are injured by an at-fault driver who does not have any insurance, or does not have enough insurance coverage to cover your injuries. Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage also covers your costs if you are hurt by a hit-and-run driver. The amount of UM/UIM coverage available is subject to your policy. In other words, you decide how much you want to purchase.How Does UM/UIM Coverage Help?Example: You have an UM/UIM policy limit of $100,000. You are seriously injured in an accident with $80,000 in medical bills. The driver at fault for the crash only had $40,000 in liability coverage. You would then collect $40,000 from the at-fault driver's insurance policy. Your own insurance company would compensate you the remaining $40,000. If you did not have the UM/UIM coverage, you would only receive the driver's liability insurance limit. If the driver had no insurance at all, and you did not have UM/UIM coverage, you would not receive any insurance compensation. This is why it is so important to protect yourself. You have no control over whether or not the driver the car that hits you has insurance coverage. Injuries sustained in a serious accident can cost hundreds of thousands of dollars.