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types of auto insurance coverage in California
We continue cycle of articles a theme about auto insurance in U.S. The beginning about a theme of insurance look Car insurance in the US.
types of coverings in car insurance and their limits.
We do not have problem to learn all available coverings, possible in the auto insurance world. For this purpose there is a weight of sources in a network, books, and, not in the last instance, your insurance agent. We, on the contrary, will try to see a problem as a whole, without obscuring it too from fine details.
Liability Coverage - Is when us judge or can judge, irrespective of validity of claims and irrespective of than proceeding will end, if will get to court. 95 % of affairs do not reach court, as the parties reach settlement, or one party "sends far away" another and calms down, without pottering with court.
The insurance company pays on this article for us not only a damage, which we caused to health or the property of other people. It as pays litigation cost, that is, barratry cost.
Sometimes without any payment of indemnification, is simple to beat off from absolutely absurd claims, leave ten thousand on pay lawyers.
The person cannot be judged for the sum, big, than it assets, where bank accounts are included, equity in real estate, the action, and that is very important for beginners – garnishment of wages (deduction from a salary for 10 years forward from all members a family at a rate of 25 %).
That is, at young family, which has arrived one month ago, there is nothing, that is possible to take away. But, within 10 years the husband and the wife can earn together, for example, 160 thousand a year. Then from them it is possible to receive for 10 years of 400 thousand dollars.
In what situation at the originator of accident the court will select everything, what it has? – In case of death of the person, in case of physical inability.
The amount of damage also depends on a solvency of the victim. The mental cruelty (pain and suffering) the serious lawyer or the doctor, lain three months in plaster, costs much more expensively, than the same concerning the worker on building.
It is obvious that we as drivers cannot supervise how many another's cars we can cause damage in case of accident, neither their quote, nor quantity of drivers and them passengers, neither gravity of the traumas received by them, nor cost of their subsequent treatment. Therefore, for definition of the sum of insurance responsibility we start to count with worst the variant.
Happens something so bad through our fault, that from us want to take away everything that is possible, on a maximum. How many it is possible to take away from us if to take away everything, including 25 % from the salary the next 10 years? - On this sum it is necessary to insure liability in that its part which is responsible for a damage to health of people (Bodily Injury – first two components of our fraction).
Very soon there will come the moment when $500,000 of the maximal covering offered on the auto insurance becomes insufficiently. Then the additional covering in the form of Umbrella Insurance is required to us.
The requirement for an insurance covering changes in time. Whence we have very important
The conclusion №4 – Size of an insurance covering needs to be reconsidered periodically, commensurating it with growth of potential responsibility.
Uninsured Motorist Bodily Injury (UMBI) – covers our mental cruelty and physical injuries in a case when we have suffered from not insured (or insufficiently insured) the driver. That is, if the originator of accident has no enough Liability Coverage.
It is accepted to take this covering in the same the size in what we take Liability on the car, it is not less. A principle such what to insure itself it is necessary not worse, than we insure against ourselves another's people.
Uninsured Motorist Property Damage (UMPD) – covers a damage to our car in similar circumstances that is if we have suffered from not insured (or insufficiently insured) the driver.
If we ourselves have damaged our car the damage will be covered or on article Collision (physical collision with car, the house, a border, overturning) or on article Comprehensive (all the rest – collision with an animal, theft, vandalism, a hailstones, flooding and so forth). Collision and Comprehensive it is possible to buy with different deductible (the sum paid insured before starts to pay the insurance company).
Choos deductible it is more, the person saves on insurance cost, but loses in case of accident.
If the person goes many years without accident, there is a sense to think about high deductible on Collision, for example, $1,000. For Comprehensive which costs ridiculously a little, it is possible to go on $250 as to save especially there is nothing.
Medical Coverage - it is interesting the covering. Some thousand dollars, usually 2-5 thousand, bought under this article, are spent without finding-out guilty.
If medical aid is necessary on a great sum the expense will go Liability from the guilty . Here the guilty do not reveal. The help is necessary? (To tie up, plaster to put, to doctors on some receptions to descend, a X-ray and so forth) – here, take money.
Idea such that the person to whom have helped at once and have concerned humanly does not become has legal proceedings so often, as the person offended.