What You Need to Know Before Buying Car Insurance in California
An important aspect of buying a car is the insurance. Laws vary between states about the type of insurance required, and what occurs with your insurance company after an accident. It is vital to have the correct kind of insurance so you won’t be fined or have your license revoked for improper insurance. Additionally, a poor understanding of your state’s insurance could lead to losing large amounts of money you deserve to receive from your accident. Make sure you know the following information before you buy car insurance in California.
Minimum Requirements
California drivers must purchase car insurance with a minimum coverage of $15,000 per person and $30,000 per occurrence. $15,000 per person refers to the maximum amount the insurance company will pay if you get in an accident. The maximum amount the insurance company will give for a single accident is $30,000. If you do not have the minimum coverages, it is not legal for you to drive in California.
Other Types of California Coverage
Along with the minimum requirements, California insurance companies must offer other types of coverage. One of the types is medical payment coverage, or MedPay – no-fault coverage anyone can use to cover an injury, no matter who was responsible for the accident. MedPay covers medical expenses quickly so a claimant does not have to wait to settle the claim before being reimbursed for the medical fees.
California insurance companies must offer people Uninsured/Underinsured Motorist Coverage (UM/UIM). You can use UM/UIM if you get into an accident and the other person does not have any insurance, or does not have enough to take care of the full damage. Your UM/UIM will cover the damage.
Uninsured/Underinsured Motorist Coverage
If you get into an accident and you have UM/UIM insurance, your insurance company will cover the damage the at-fault driver cannot cover. However, it will only cover the damage up to the policy maximum, so if your damage amounts to more than your policy, you may not be able to receive compensation for the entire amount.
Even though you are working with your own insurance company, getting compensation through UM/UIM coverage is still extremely complicated. California law gives your insurance company the right to use all the defenses the at-fault driver would use. Your insurance company may argue you were more responsible for the damage to reduce the amount the must pay UM/UIM coverage.
Benefits Under Your Insurance Policy
It is a good idea to file a claim with your own insurance company if you were in an accident and have MedPay or UM/UIM coverage. California law outlines special regulations for MedPay and UM/UIM claims that can give you more protection. The regulations also give your insurance company special rights, such as requiring you to see a doctor of their choice. Some insurance companies intentionally ignore the regulations to save money, so it is important to work with an attorney to know if your insurer is trying to trick you.
Does My Insurance Company Need to Be Reimbursed?
If MedPay or health insurance covered your medical bills from the accident, your insurance company may file a claim for reimbursement for the expenses it covered. You would have to take the money out of the amount you were paid in your claim. Most insurance policies now have provisions that require you to pay back your insurer from the compensation you won in your case. California law, however, also has certain exceptions that might prevent you from having to completely reimburse your company, or from having to reimburse anything at all. If your insurance company requests reimbursement, it is important to review the stipulations to determine whether you owe any reimbursement.