Everyone knows how to buy car insurance after buying a car. However, many people have bought auto insurance for several years or even ten or twenty years. To cater to customers’ desire for low premiums, many insurance agents only sell customers the lowest insurance coverage (Coverage) and do not explain the meaning to customers.
Liability. California law requires every car owner to buy liability insurance, with a minimum requirement of $15,000/$30,000. Liability insurance is to insure others, that is to say, if Mr. Zhang buys liability insurance, when he accidentally hits others and causes others to be injured, this insurance will replace Mr. Zhang to compensate others for their medical expenses and pain compensation. If someone accidentally bumps into Mr. Zhang, then someone else’s insurance company will pay for it. We once met a customer who contacted his insurance company immediately after being hit by someone else’s car. When his own insurance company learned about the situation, he found that the customer only bought basic liability insurance. So tell the guest that they don’t care about Mr. Zhang’s car repairs or seeing a doctor. This customer was full of rage and angrily told us that he had paid the insurance company for so many years, and now they have a car accident, and they don’t care. It’s outrageous. The insurance company is not wrong, but the customer has never understood that the liability insurance he bought is to protect others. Of course, in a sense, protecting others is protecting yourself, protecting your purse and your property.
As mentioned above, the $15,000/$30,000 liability insurance is the minimum required by California law. So how much coverage should you buy? The answer to this question varies from person to person. If a person has a low income and does not own a house, then a minimum purchase of $15,000/$30,000 should be fine. But if a person has a high income and owns a property, then they should consider buying a higher sum assured. For example, $100,000/$300,000 or even $250,000/$500,000, because if one day you accidentally hit someone and cause serious injury or death to someone, and you only bought the sum assured of $15,000/$30,000, which is not enough to pay other people’s compensation, and you own the property, Others will likely sue you for your assets after taking out insurance claims.
Collision. This insurance is for yourself. After a car accident, whether it’s your fault or the other party’s fault, if you buy collision insurance, notify your insurance company, and your insurance company will quickly pay for your car repairs. If your car is destroyed, it will also give you a check soon to pay for your car for what it was worth before the crash. If it is the other party’s fault, your insurance company will not increase your premiums but will seek compensation (Reimbursement) from the other party’s insurance company after compensating you. Even if it’s the other person’s fault, the benefit of buying collision insurance is that you can get your money faster. Because the opposite insurance company usually investigates the liability after a car accident and determines that it is their insured (Insured) fault before accepting the responsibility and paying the compensation. When the responsibility is not clear, it sometimes drags on for a long time. If you’re buying a new car or a luxury used car, you should generally consider buying collision coverage. If you have a loan to buy a car, then the bank must require you to buy collision insurance.
Medical Insurance. This insurance covers you and the passengers in your car. Whether it’s your fault or the other party’s fault, if you have medical insurance, your insurance company will pay for the medical expenses for yourself and all passengers in your car for injuries caused by the car accident. If you don’t have health insurance or if you let others ride in your car from time to time, then you should consider buying this insurance. Because if you accidentally crash your car and injure yourself and the passengers in your car, then you are responsible for it. Some schools require Ride parents (albeit obligatory) to have medical insurance to carry other children. The advantage of buying medical insurance is that usually the insurance company pays this compensation very generously and doesn’t care much about whether you are excessive treatment. We have seen even a customer claiming that his glasses were damaged by an airbag after a car accident, so he ordered a pair of glasses worth more than 400 yuan, and the insurance company also paid the full amount. In addition, some insurance companies do not have Reimbursement requirements for medical insurance. In other words, if the other party is at fault, the other party’s insurance company will compensate for the medical expenses, and if the guest’s medical insurance does not require Reimbursement, the guest can obtain double compensation.
The other party is uninsured or under-insured (UM—Uninsured Motorist and/or Under-insured). This insurance is very important and must be bought, especially in California. There are many illegal immigrants. They don’t have a driver’s license and can’t buy insurance, but they have to work and live, and they have to drive. If you abide by the law and be careful everywhere, but you don’t have this insurance, you are unfortunately hit by such a person. Year after year, pay the premium obediently, and you won’t get any insurance compensation. And this kind of person is usually a person who wants money or not or a life. What a shame it must be in such a situation. In addition, many people only buy the minimum amount of insurance required by law to save insurance premiums. We had a guest a few years ago who had two broken bones due to speeding. But the other party only insured the minimum amount, and he did not have Under-insured insurance, so he finally had to take $15,000. Fortunately, he still has health insurance, which helped pay for his medical expenses.
In short, be sure to ask when buying insurance. If you have insurance, but you are still not sure, you must also understand it clearly. You can suspend unnecessary insurance items and add more necessary insurance items. In this way, in the unfortunate event of a car accident, you can fully protect yourself. After a car accident, be sure to consult a professional car accident lawyer as soon as possible to protect your rights.