Car insurance is there to protect us incase of an accident. States implements this law this call and require driver to have it so will us financially as well, since car accident can be costly. A California state requirement for car insurance is 15/30. Those two numbers repent the max the insurance will pay out.
Example:
The first number 15 represents 15,000 that the insurance will pay for body injuries to a sing person in a car accident.
The second number is the limit per accident – The total number the insurance will pay out of multiple people that are inured in an accident.
The best thing to do is buy as high an s a policy as you can afford. If you owe more than what your limits are you may be leaving yourself open to a lawsuit.
Property Damage liability insurance does notcover your car, it only covers damage to the other parties car or personal property
IF you see three numbers such as 15/30/20 The meaning would be the first two numbers represent bodily injuries And the third would represent property damage to the other driver’s car.
To help you pay for the damage to your own car it is best to get comprehensive and collision coverage. Comprehensive coverage pays for non-accident related events such as: fires, natural disaster and hit by an animal. Collision insurance – will help pay for your car in an accident. (Hit and runs are paid by collision coverage).
When getting a leasing a car it is important to also get gap insurance. Gap Insurance pay the difference of what you owe the dealer ship and what it is valued at the time of the accident. When leasing or buying a car it is important to remember that cars depreciate rapidly. When driving it off the lot of a dealer ship the car goes down by 10%. The car value usually goes down 15-25 % yearly so that is why it is important to get gap insurance. You don’t want to get an accident owe 25,000 to the dealer and the car be valued at 15,000 at the time of the accident. YOU will then have to owe the dealer 10,000 and not have a car anymore. I highly recommend that you look into this when leasing a car.