6 Types of Auto Insurance Coverage Options That California Does Not Require, But Do You Need Them?
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Ron Trumbo
Insurance Editor
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As you shop for car insurance in California, it’s important that you have enough insurance coverage to protect your short and long-term finances and assets (i.e. your home). California requires a minimum liability bodily injury and property damage, but there are few types of auto insurance coverage that are not required by California law. Beware: just because they’re not required, doesn’t mean that you don’t need them. You need to have quality discussions with licensed and experienced insurance agents to understand your true needs.
Uninsured/Underinsured Motorist Bodily Insurance
Although this coverage is not required for California drivers to be able to drive, California does mandate that California insurance companies offer it as a part of your policy. You’ll find that if you elect to not buy uninsured/underinsured motorist bodily coverage, you’ll have to sign a form that formally states as such. Remember, Uninsured/Underinsured Bodily protects you if you’re involved in an accident and the other driver does not have liability coverage, or they simply don’t have enough to cover your expenses.
California Uninsured Motorist Property Damage
Similar to the above uninsured/underinsured bodily coverage, this type of coverage is not required for drivers, but is also required by California insurance companied to at least offer it in your policy. According to the California Department of Insurance, uninsured motorist property damage covers the repairs that are not covered by your collision insurance, up to $3,500.
Medical Payments Auto Insurance Coverage
Medical payment coverage is not required in an auto insurance policy in California, nevertheless, responsible drivers should consider it. This covers medical expenses when you’re hurt in an accident, including your passengers. This type of coverage is the perfect example of why you need to have a conversation with an experienced auto insurance agent before you simply buy anything online. There’s a lot of grey area in this provision, so ask questions! What is it, and what does it protect?
Comprehensive and Collision Coverage
Also know as Comp & Collision, this type of auto insurance coverage is generally required by your lender (who you have a car payment with) or leasing company. These coverage options have a separate insurance deductible, and protect your car or truck, including repair and replacement value.
Auto Insurance Rental Reimbursement Coverage
Not required by California law, this rental reimbursement coverage gives you money back on the cost of renting a car while your own vehicle is in the shop being repaired due to an insurance claim. See also rental car insurance.
Towing Coverage for Auto Insurance Policies
Towing is not required by California law, but is generally included in most California insurance quotes. If you need towing coverage if during an accident your car is not operable, it may be worth the cost. If you already have a towing service/roadside assistance membership (e.g. AAA), this coverage might be an unnecessary cost.
Auto Insurance Coverage Required by California
California law does require that you have liability of 15/30/5, which translates as: $15,000 for injury/death to one person; $30,000 for injury/death to more than one person; and $5,000 for damage to property. |
