What type of coverage do I need or want?
Liability Coverage
When operating a motor vehicle, liability coverage is probably the most important coverage you will need. This is the only coverage legally required by the State of California when driving in order to meet financial responsibility laws. Liability coverage is also legally required to obtain and maintain valid vehicle registration through the Department of Motor Vehicles.
Comprehensive and Collision
If you are financing your vehicle through a bank or finance company you will be required by those institutions to maintain physical damage coverage. Comprehensive and collision coverage protects your vehicle from potential fire, theft, vandalism or accidental damage. When your vehicle is paid off and physical damage coverage is no longer required by your bank or finance company, you may or may not elect to continue with this coverage. In determining whether to maintain physical damage coverage once your vehicle is paid off, the following factors should be taken under consideration: the age and value of your vehicle, what you can comfortably afford to pay for a replacement vehicle without this coverage, and the personal sentiment you attribute to your vehicle. Although this coverage is necessary when financing and may or may not be carried once financing is completed, it is not a legal requirement by the State of California when operating your vehicle on the streets and highways.
Other types of coverage to consider
Medical coverage
This coverage can pay for you and your passengers expenses associated with injuries endured as a result of an automobile accident, regardless of fault.
Uninsured/Underinsured Motorist
This coverage can pay for you and your passengers expenses associated with injuries endured as a result of an automobile accident with a driver who is either not insured, or has insufficient liability coverage limits to pay for your injuries.
Uninsured Motorist Property Damage
This coverage can pay for the damage to your vehicle as a result of an accident with a driver who has no liability insurance.
Rental Reimbursement
This coverage can pay for the expense of renting a vehicle when there is a loss to your insured vehicle under your comprehensive and collision coverage.