subject: Which California Auto Insurance Type Is The Most Suitable [print this page] To put in simpler terms, automobile insurance is nothing but a contract between an insurance company and a policyholder to cover the losses that arise from any damage to the automobile. Auto insurance is a prime necessity considering the increasing frequency of motor accident. With an automobile insurance, you can keep yourself on the safe front in terms of law and liability. Even in the state of California, it is necessary since the rate of auto accidents is rocketing up.
In California, the automobile drivers are required to have California auto insurance. Some sorts of damage to the motor vehicles cost drivers and owners dearly. Automobile insurance policies abound in number when it comes to types and options. The following primary risks are considerable for almost all types of auto insurance
Physical damage to the body and organ of your or the others automobile
Expense for medical treatment of physical injury to the other person
Expense for your medical treatment if you have received injury in an accident
Fees for an attorney if you are charged with blame for the accident
Fault and no-Fault Automobile Insurance Systems
Almost all automobile insurance types provide these coverage options. But the amount of coverage varies with the insurance schemes. Having no auto insurance, you will have to face financial risks due to the high cost of medical treatment and lawsuit. In the state of California, the automobile insurance system is of two types fault and no-fault.
In case of the no-fault auto insurance system, who is responsible for the accident, does not matter. The cause of damage to your vehicle, either be it recklessness on your part or collision with another vehicle is not countable. The insurance company covers damage to the vehicle of and expense for the treatment of its policy holder. The no-fault system may not provide coverage for serious medical injury and expensive property damage.
According to the fault auto insurance system, a lawsuit is field to determine the accident is a result of whose fault. The driver who has suffered loss and injury in the accident is paid by the insurance company of the driver who is responsible. The at-fault driver is also paid by the company for his losses according to the policy terms. The California auto insurance is of three major types collision, medical expense and liability.
Collision covers repairing costs of damage to your motor vehicle, caused in an accident. But the damage to the other persons vehicle is not covered.
Liability insurance provides coverage for the damage to the automobile and the accidental injury of the other driver.
Medical insurance provides coverage for the treatment of your personal accidental injury.
If your auto insurance policy covers payment for all loses, no matter if the at-fault driver is underinsured. In case the accumulated value of your automobile insurance policy falls short of the losses, you will be financially in trouble. An uninsured motorist policy from the insurance company of yours will provide coverage for your losses up to the value of the policy. So, make sure to have a California auto insurance policy.
by: Danieal
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