Auto Insurance Coverages 101

Auto insurance is the best protection you can have for your vehicle. Like other drivers across the country, California drivers have daily auto collisions and nonaccident incidents that damage their vehicles. Auto insurance may help protect you financially and reduce out-of-pocket costs if you have a covered loss.
Car being towed

Part of finding the right auto insurance policy is knowing what types of coverage you need for your situation. Read on to learn more about basic types of coverage, as well as common “optional” lines of coverage, such as rental reimbursement and guaranteed asset protection (GAP) coverage.

What Does Auto Insurance Cover?

The state of California requires drivers to carry minimum levels of liability coverage and uninsured motorist coverage. And, if you’ve financed your vehicle, your lender may require you to carry minimum amounts of collision and comprehensive coverage. With that being said, you generally can build your policy to fit your unique needs. Learn more about the common types of coverage below.

Comprehensive insurance may help pay for nonaccident damage, such as weather damage, fire, theft, vandalism or other occurrences.

Liability insurance may help pay for the losses of the other driver and anyone else injured or harmed if you are at fault in an accident. Liability insurance includes these protections:

Bodily injury liability coverage may pay for third-party medical bills and sometimes for death benefits.
Property damage liability coverage may pay for damage to the other person’s property.

Collision insurance may cover damage to your vehicle sustained in an accident or collision with an object.

Medical payments (MedPay) coverage may help pay for medical expenses for injuries sustained in an accident, regardless of who is at fault.

Uninsured/underinsured motorist insurance may help cover damages if someone without appropriate liability coverage causes an accident that results in bodily injuries or property damage to you.

Are Other Auto Coverages Available?

There are additional coverages that may be beneficial to have as part of your auto insurance policy, including GAP insurance and rental reimbursement coverage. These are discussed next, and we can help you explore other supplemental coverages in addition to these two that may also be beneficial.

GAP Insurance

GAP insurance is a type of vehicle protection that helps bridge the financial gap between what your auto insurance may cover in the event of a total loss and what you owe on your auto loan. This protection can help protect you if your vehicle is badly damaged—or even declared a total loss—covering the gap between what your vehicle is worth, including depreciation, and what it costs to repair or replace your vehicle.

Rental Car Coverage

Rental car coverage is typically included in a collision or comprehensive auto insurance policy, enabling you to obtain a short-term vehicle if you need one after an accident. However, you may also rent a vehicle for other reasons—nonaccident-related. We can explore your rental car coverage, specifically if your policy includes coverage for a rental vehicle. If you’re renting a vehicle for leisure, we can see if your insurance will provide coverage or you should consider the rental company’s auto coverage.

Get Help Choosing the Right Auto Coverage

RCU Insurance Services in Santa Rosa, California, works to ensure you have the right coverage when you may need it the most. Let us help you with the protection you need for yourself and your vehicle.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.

Posted 11:57 AM

Tags: auto insurance