{"id":5643,"date":"2021-05-13T07:06:00","date_gmt":"2021-05-13T14:06:00","guid":{"rendered":"https:\/\/www.costulessdirect.com\/?p=5643"},"modified":"2021-05-13T07:06:00","modified_gmt":"2021-05-13T14:06:00","slug":"insurance-you-dont-need","status":"publish","type":"post","link":"https:\/\/www.costulessdirect.com\/blog\/insurance-you-dont-need\/","title":{"rendered":"Don\u2019t Buy Insurance You Don\u2019t Need"},"content":{"rendered":"\n
With so many car insurance options out there<\/a>, it can be hard to pick out exactly what kind of car insurance you need and determine what kind of insurance is unnecessary.<\/p>\n\n\n\n If you\u2019re not sure why drivers need different types of car insurance, then you\u2019ve come to the right place! Here, we break down the three main types of car insurance and why people need them (or not).<\/p>\n\n\n\n When you\u2019re at fault in a car accident, liability insurance covers the damage to the other car as well as the medical bills of the other people involved in the accident. Liability insurance does not cover your medical bills or repairs to your own car. The other driver\u2019s liability insurance covers these costs, but only if they\u2019re at fault for the accident.<\/p>\n\n\n\n Liability insurance is the type of insurance that\u2019s required by law in most states<\/a>. In California<\/a>, all drivers must have liability insurance with policy limits of at least 15\/30\/5<\/a>. This means that a liability insurance policy in California must cover at least $15,000 per person for bodily injury, $30,000 per accident for bodily injury, and $5,000 for property damage.<\/p>\n\n\n\n In addition, California drivers must carry uninsured motorist insurance with policy limits of at least 15\/30\/3.5, or at least $15,000 per person for bodily injury, $30,000 per accident for bodily injury, and $3,500 for property damage. Uninsured motorist insurance covers your own medical bills and repair costs if another driver causes a car accident but is uninsured.<\/p>\n\n\n\n If you are at fault for a car accident and the medical and\/or car repair costs of the other driver exceed your policy limits, then you may be sued in court to cover the remaining costs personally.<\/p>\n\n\n\n If you are caught driving in California without proof of minimum liability insurance coverage, you face fines ranging from $100 to well over $500. In addition, your car registration will be suspended<\/a>, and your car may be impounded until you can provide proof of adequate insurance coverage. If this happens, then you\u2019re also responsible for paying the towing and storage fees before you can get your car back.<\/p>\n\n\n\n Collision insurance covers the costs of repairs to your car when it\u2019s involved in a collision with another vehicle or object. Unlike liability insurance coverage, you can make a collision insurance claim regardless of whether you are at fault for the accident. In addition to covering repairs to your vehicle, collision insurance policies may also cover services related to car accidents, such as car towing and rental car reimbursement while your car is being repaired. Expect to pay a higher premium if you choose these additional coverages.<\/p>\n\n\n\n Collision insurance is not legally required in California. However, if you are leasing or financing a car, then the leasing or financing company may contractually require you to maintain the minimum collision insurance coverage.<\/p>\n\n\n\n If you exceed the policy limits of your collision insurance policy, then you will be on the hook for the remaining costs to repair your car.<\/p>\n\n\n\n If you\u2019re leasing or financing a car, then you may likely be violating your contract if you don\u2019t have collision coverage. When this happens, the leasing or financing company usually takes out a collision insurance policy, which you then have to pay. And unlike you, leasing and financing companies aren\u2019t interested in finding the cheapest option!<\/p>\n\n\n\n If you\u2019ve already completely paid off your car, then the risk of not having a collision insurance policy is that you\u2019re responsible for your car repairs if you\u2019re at fault in a car accident.<\/p>\n\n\n\n Another advantage of collision insurance is that claims are usually faster to process. Even if you\u2019re not at fault for a car accident, it may take weeks or even months for a court to determine that the other driver is liable for the damage to your vehicle. In the meantime, you may not be able to drive your car to work or school!<\/p>\n\n\n\n However, if you don\u2019t need your car for essential tasks like getting to work, then it likely makes sense to reduce or drop your collision insurance coverage altogether.<\/p>\n\n\n\nLiability Insurance<\/a><\/h2>\n\n\n\n
Do You Need Liability Insurance?<\/a><\/h3>\n\n\n\n
What Happens When You Exceed the Limits of Your Liability Insurance Coverage?<\/a><\/h3>\n\n\n\n
What Happens When You Don\u2019t Have Liability Insurance Coverage?<\/a><\/h3>\n\n\n\n
Collision Insurance<\/a><\/h2>\n\n\n\n
Do You Need Collision Insurance?<\/a><\/h3>\n\n\n\n
What Happens When You Exceed the Policy Limits of Your Collision Insurance Coverage?<\/a><\/h3>\n\n\n\n
What Happens When You Don\u2019t Have Collision Insurance Coverage?<\/a><\/h3>\n\n\n\n
Comprehensive Insurance<\/a><\/h2>\n\n\n\n