At RBP Insurance we want to make sure your auto insurance policy fits your exact needs.  Take time to read the information below or call us and one of our insurance professionals will be happy to explain our coverage benefits and give you a free California car insurance quote today. What you need to know before you buy. What do your coverage’s mean?

Bodily Injury Liability Insurance

Bodily injury liability insurance does not protect you or your car directly.  If you cause an accident injuring other people, it protects you against their claims up to the stated amounts for medical expenses, lost wages, pain and suffering, and other losses.  It will also usually pay if the accident was caused by a member of your family living with you or a person using your auto with your consent. Bodily Injury Liability is necessary for safeguarding assets such as your home, and savings.

Property Damage Insurance

Property Damage Liability insurance pays for any damage up to the stated amount you cause to the property of others such as a crushed fender, broken glass, or a damaged wall or fence.  Your insurance will pay of this damage if you were driving your auto or if it was being driven by another person with your consent.

Uninsured Motorist Coverage

Uninsured motorist coverage applies to bodily injury you, your family, and other occupants of your vehicle incur when hit by an uninsured motorist or hit-and-run driver.  It also covers you and your family if injured as a pedestrian when struck by an uninsured motorist or hit-and-run driver.  It protects you by making sure that money is available to pay for your losses that were caused by someone else.
Uninsured motorist coverage does not cover your property damage and does not protect the other driver. Your insurance company may sue the other driver for any money the company pays you because of the other driver’s negligence.

Underinsured Motorist Coverage

This is an optional coverage that increases the personal injury protection to you and the people in your car up to the amount of coverage purchased.  It becomes effective when the party causing an accident has lower limits than you purchase and the accident costs more.  The maximum dollar amount paid is then the difference between the two limits.
For example, assume the underinsured motorist (UIM) limits selected were $100,000 per person and the person causing the accident had limits of $50,000 per person.  Under this scenario, you could collect up to $50,000 from the at-fault driver and up to an additional $50,000 (the difference in limits) under your own UIM coverage.

Medical Payments

This provides medical or funeral expenses for people injured or killed in your car.  It also covers you and members of your family if hit by a car or injured while riding in another car.  Medical expense coverage is usually sold as a single amount such as $1,000.  Companies must offer this coverage but you don’t have to buy it.

Physical Damage Coverage

There are three basic types of physical damage coverage for motor vehicles:  collision and comprehensive.

  1. Collision Coverage: This protects your car if your car collides with an object, including another car, or if it overturns.  Your own insurer will pay for such damage even if the collision is your fault.  Limits are based on the actual cash value of your car and it is usually written with a deductible of $100 or more.
  2. Comprehensive Coverage: This protects your car against almost all damage except loss caused by collision.  This includes fire, theft, glass breakage, falling objects, explosion, earthquake, civil commotion, or colliding with a wild bird or animal.  It is based upon the actual cash value of your car and can be written with a deductible.  Flood damage to your auto is covered if your auto insurance policy includes comprehensive coverage.

Coverage for your vehicle in an auto insurance policy is not based on replacement cost.  The amount an insurance company will pay on an auto physical damage or theft claim depends on the “actual cash value” of the vehicle.  The actual cash value of the vehicle is the replacement cost less depreciation, which most often is the current market value at the time of loss.  Therefore, the company’s obligation is to repair the car based upon its actual cash value not its replacement cost.

How do I know what limits to choose?

Liability/Uninsured Motorist

When deciding on your liability limits you want to take into consideration your net worth.  For example if you rent an apartment, have a 1989 Honda Civic and only have 5 thousand dollars to your name then you will want minimum limits because you do not have much to protect in the event of a lawsuit.  However if you own a house or any sort of property you will want limits of at least 100/300 or more because it well protect your property from foreclosure in the event of a lawsuit.  In addition we recommend to our clients that they match their uninsured/underinsured motorist limits with their liability limits because they both protect your assets.

Property Damage

We recommend you have one hundred thousand in the case that you total a high end car such as a Mercedes or BMW.  However if you want to save some money on your premium fifty thousand will fully cover you in the majority of accidents.

Medical Payments

Five thousand is pretty standard on a policy it helps cover medical bills without involving the legal system.

Collision/Comprehensive Deductibles

Collision- If you have a clean driving record and don’t have very little if none at fault accidents we would recommend a $1000 deductible or greater to save money on our premium.  However if you have some accidents in your past a lower deductible will save you money in the event you crash again.

Comprehensive- $500 is the standard and it is not very expensive.


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