Automobile Insurance for San Diego's Roads: What You Need
Most San Diegans drive with auto insurance. But most are severely under-insured or don't have the right kind of insurance to do them the most good if they are involved in an auto accident.
Unfortunately, our office usually typically has the opportunity to advise clients of their proper insurance needs ONLY after they've been in an accident and it's clear to them they were under-insured. So, please consider this to be a preemptive public safety announcement to all San Diegans.
1. Do Not Purchase Minimum Insurance. The minimum amount of insurance coverage necessary to drive a car in California is bodily injury coverage of $15K/$30K. This means that, in the event that you negligently cause an accident, your insurance carrier will pay all medical bills, lost wages, and pain and suffering for those you injured up to $15K per person or $30K per accident. If their damages exceed this amount, then you could be personally responsible for the balance. Obviously $15K isn't much money and automobile accident claims can easily exceed this amount, particularly where there is a claim for wrongful death. It is important that you purchase as much bodily injury coverage as you can afford. This is not only important to protect your assets, but, as the next section will make clear, so that you can maximize your under-insured/uninsured motorist coverage.
2. Purchase As Much UM/UIM Insurance Coverage As You Can. Ok, you're responsible. You purchased as much bodily injury coverage as you can. But the other guy, just assume that he is not responsible and is carrying only the minimum coverage--or no coverage at all! That is why you need to maximize your uninsured/under-insured motorist coverage (UM/UIM). UM/UIM allows you to turn to your own insurance to pay for your injuries which exceed the limits of the other driver's insurance policy. However, you can only purchase UM/UIM coverage up to the limits of your bodily injury coverage. So, if your bodily injury coverage is $100K, that is the most UM/UIM coverage you can purchase. UM/UIM is one of the cheapest components of an auto insurance policy. There is no excuse not to have it.
3. Purchase MedPay Coverage, Particularly if You Do Not Have Health Insurance. MedPay allows you and your passengers to pay for medical care, regardless of who was at fault for causing the accident.
4. Purchase Property Damage Coverage At Least Equal to the Value of Your Vehicle. Don't rely on the other driver's insurance company to pay for your property damage, or to offer the fair market value for your vehicle. They often don't. In times like that, it is essential to have an insurance policy you can turn to to pay for your own property damage. Your insurance company will immediately pay for your property damage and then go after the other driver's insurance for reimbursement. Without this coverage, you are at the mercy of what the other driver's insurance will offer you--if they offer you anything at all.
5. Rental Car Coverage. If you car is damaged, you want to have access to a vehicle, right? Get this coverage. However, if you do have to rent a car following an accident, NEVER EVER purchase insurance from the rental company. You're already covered under your own insurance and the rental car coverage does not reimburse you for purchasing other insurance.
6. If You Have a New Car, Look Into Gap Insurance. Say you buy a brand new car for $30,000. After you get off the lot, the value of the vehicle has already dropped to $28,000 and is dropping fast as the car is no longer new and is becoming more and more used. Well, what happens if your car is totalled just a week later? You will be paid $28,000 for your car, but you will owe the $30,000 to a finance company. Without gap insurance, you are responsible for the $2,000 shortfall. With gap insurance, the insurance company pays for this shortfall.
Hope this all helps. Pay particular attention to items 1 & 2. They are the most crucial of the six.
And drive safely.
