The Importance of Insurance Coverage

The Importance of Insurance Coverage

What is Auto Insurance?

Auto Insurance is a contract between an ordinary consumer and a company that provides a guarantee of compensation for loss or damage to vehicles that are owned by the consumer. This guarantee is only offered by the company in return for payment of a premium from the consumer. Moreover, an insurance contract itself specifies what losses a consumer can expect to receive coverage for, depending on how much of a premium the consumer can afford to pay. The higher the premium, the more coverage insurance companies are willing to offer against losses.

Auto Insurance in particular is usually classified into three categories of coverage, these are: Property, Liability and Medical coverage. Property coverage is a category that pays for damage to, or theft of, vehicles. Liability coverage is intended to compensate consumers for legal responsibility in cases of bodily injury or property damage sustained by other drivers and pedestrians. Thirdly, Medical coverage compensates consumers for the cost of hospital visits, lost wages or funeral expenses incurred after an accident.

What are the minimum requirements for Auto Insurance Coverage?

Different states have different requirements regarding Auto Insurance coverage, but all stipulate that drivers purchase policies in at least two of the previously mentioned categories. The state of California in particular mandates that all vehicles registered in the state carry specific minimum levels of financial responsibility with regards to Bodily Injury and Property Damage.

Statutory Requirements for Auto Insurance Coverage in California

Type of Coverage Minimum Requirement

1) Bodily Injury At least $15,000 per Person/$30,000 per Accident

2) Property Damage At least $5,000 per Accident

Even with these requirements, California allows alternative subscription programs to help low-income drivers or persons who cannot acquire standard insurance find coverage. Adriana’s Insurance Services is equipped to help any driver find the right coverage regardless of the circumstances.

Why get Auto Insurance?

Purchasing Auto Insurance isn’t just something to do as a formality. Purchasing Auto Insurance is a fundamental act of social responsibility. Insurance coverage not only protects you from loss and damages incurred during an accident, it protects others around you from the aftermath as well. It’s understandable that finding the right coverage can be a challenging process. Beyond struggling to identify the most economical option, people are often surprised to find that insurers are hesitant to provide coverage out of fears that a consumer may be high-risk. But there is no need despair. There is always a way to do the right thing if you’re willing to try hard enough. Adriana’s Insurance Services is ready to help any driver take charge of their life and secure their journey to success. Don’t risk being a hazard to yourself and others by driving without coverage. Always make sure to have current Auto Insurance coverage.