What Liability Car Insurance Covers: Are You Properly Insured?

Updated: Apr 17, 2019

California Law, requires everyone show financial responsibility for any vehicle that they own, in case of bodily injury or damages to other peoples property. Each state minimum liability insurance requirements are different but California requires the followings:

$15,000 for injury/ death to one person.

$30,000 for injury/ death to more than one person.

$5,000 for damage to property.

This limit might sound favorable, but in the case of a atrocious car accident this will only cover a third of the total cost. For example, in an event of a car accident if the other individual were to get hospitalize for three days, the total cost could be up to $30,000 dollars. In this case, your insurance company will cover half of the total cost leaving all extra expenses on your hand. This leaves your liable for any reaming debt, leaving you at risk for a potential lawsuit that could lead to you loosing your personal properties.

Property Damage:

In addition, only obtaining the limit required in property damage could also put you liable for any reaming debt. Property damage covers only the following:

Repairs to damages on the vehicle involved in the collision

Fixing of any destruction on houses, fences, lamp posts, mailboxes, etc

Legal Defense Fees

Lost income from business closure that the collision produced

If the minimum was solely obtained, it will mean that your insurance provider will only cover $5,000 of the damages leaving you liable for any remaining debt. The minimum required, will not cover a third of the cost listed above. A lot of individuals are not aware of the risk of not obtaining a higher limit and may end up paying more out of pocket.

Uninsured Motorist:

Not required by law, uninsured motorist coverage protects you from a driver who doesn't hold car insurance. In an event of a hit and run, the insurance company will cover some of the liability and property damage if you help identify the uninsured driver.

​This protects you from using your own insurance provider to cover the cost conducted by another vehicle risking that it will not protect the full expense. For this reason, we recommend on obtaining a minimum coverage for uninsured motorist in an event of this occurring.

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