Understanding Your Car Insurance Orange County Policy

If you purchased your car insurance online for convenience chances are you do not have a deep understanding of how your insurance policy protects you. While taking time out of your day to meet with an insurance agent may seem like a hassle, it is something every driver should do. Sitting down with an insurance agent will allow you to gain a deeper understand of your car insurance Orange County policy. While you are not expected to understand the ins and outs of insurance, knowing how each coverage works will be a blessing in the long run. Refer to the basic guide below and understand how California insurance coverages work.

Liability

Liability insurance is a required coverage in the state of California. This coverage is designed to pay for injuries and damages to a third party. Liability coverages will only payout if you are deemed at fault for the accident. Bodily Injury and Property Damage are two separate types of liability coverage and each have their own limits on a car insurance Orange County policy. Bodily Injury limits have per person and per accident limit, whereas Property Damage has a single per occurrence limit. While state requirements are: $15,000 per person, $30,000 per accident and $5,000 per occurrence, it is recommended to carry higher coverages.

Medical Payments

Medical Payments coverage is optional in the state of California. This coverage is designed to protect both the insured driver and passengers in the vehicle who sustain injuries in an auto accident. Medical Payments will pay for injuries to the policyholder regardless of who is at fault for the accident. Limits listed on the policy are paid per person and are available in limits between $1000 and $100,000. It is recommended for policyholders to invest in this coverage if they do not have medical insurance or if they have a co-payment.

Uninsured Motorist

Uninsured Motorist also referred to as UM, is also designed to protect the insured driver and passengers. This coverage will pay for injuries to occupants of your vehicle in the event you are hit by a driver with no insurance. While drivers in the state are required to carry car insurance Orange County, not everyone abides by the rules. It is wise to protect yourself against uninsured drivers by purchased at least the minimum amount of coverage available.

While these are only three of the many coverages available, these are the most important to understand. By knowing what you are carrying and what you are choosing to reject on your car insurance Orange County policy, you can make adjustments in coverages and limits for peace of mind. Take a proactive step to understand your insurance policy and purchase adequate protection.

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