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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 injuries 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. |
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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 to your car, truck, or motorcycle,
no matter who caused the accident. 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. |
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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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