15 Aug Understanding California Auto Insurance Liability Limits
Article Written By Tom Lynch
When the word insurance is mentioned, people’s eyes
seem to glaze over. There are numbers thrown out at a million miles a minute,
and acronyms floating around that sound like they could be dangerous. The best
part is that not all companies use the same names for the same coverage, just
to sound like they are offering something unique!
To try and clarify some of these coverage terms, acronyms
and limits to help you be more informed of what you are actually buying, we are
going to do a series of posts explaining insurance coverage terms. There are a
LOT of special terms and acronyms in the industry. Today, we’ll start
with California Automobile Insurance Liability Limits.
Some carriers may call this Coverage A, or Part I of your
policy, but it should be labeled either as Automobile Liability Limits, or
listed as the two parts that this coverage is broken down into:
Bodily Injury and Property Damage.
It is important to know when each coverage type
comes into play. Generally, Liability Coverage (both Bodily Injury and
Property Damage) will be used when you are liable for the damages and injuries
cause by an accident. This means, if you are at fault (never admit to fault at
the scene of an accident!) for an accident, this coverage comes into play.
Bodily injury will cover the medical payments and costs to treat the injuries
caused to third parties up to the coverage limits. Property Damage will cover
the payments to have physical property repaired or replaced (typically another
vehicle, but not always).
The state mandates that if you have an automobile registered
in California that you maintain insurance with a minimum of 15/30/5 limits. So
what the heck does that mean?! A lot of companies use this standard to abbreviate
the Liability Limits on a California Auto Insurance Policy. Each number is in
terms of Thousands of Dollars.
- The first number indicates the limit for Bodily
Injury to any single person involved in the accident. - The second number indicates the maximum limit
for all Bodily Injury payments for any single accident. - The last number indicates the limit for amount
of Property Damage for any single accident.
What Auto Insurance Liability Limits Does California Require?
California requires Bodily Injury limits of $15,000 per
person and $30,000 aggregate per accident, as well as $5,000 for Property
Damage.
We at Stone Creek Insurance Agency feel that the above
stated limits are not high enough to protect you when insuring your cars in
California. With medical costs skyrocketing and most new cars cost well over
$15,000 you can blow through those limits quickly.
What happens if you exceed the liability limits?
YOU ARE LIABILE! That’s correct, if you insure your cars
with the state minimum limits you will be on the hook for bodily injury
liability claims over $15,000 per person (and everything in excess of $30,000
aggregate), as well as property liability claims over $5,000.
What is The Solution?
Develop a working relationship with a California licensed
insurance broker. He or She will work with you to identify the appropriate limits
and construct a policy that offers competitive rates with excellent coverage.
Please feel free to give our auto insurance specialists a
call at 925.297.4564 or complete the contact request form to the right.
*Please Note
that the above are for information purposes only and do not interpret or imply
coverage. For complete information regarding your California Auto Insurance
Policy please contact your agent or carrier