We realize many clients (or would-be clients, give us a call!) would like to know exactly what their auto insurance covers, so keep on reading to find out! Also, I'll be splitting this up into 3 blog posts because I understand how boring it is to read about insurance.
Let's start off with our basic liability coverages, these are the basis of an auto insurance policy, and are included on all policies whether you have liability only or full coverage.
Bodily Injury Liability (BI) - This coverage kicks in when you are found at fault for an accident and the driver that you hit has injuries due to this. In California, the lowest limits for BI are 15/30, which means that your insurance will pay up to $15,000 per person in the vehicle that you hit, and up to $30,000 total for one accident. We do recommend going higher on these limits (think about it - $30,000 really doesn't cover much in hospital bills these days), and you may be surprised as to how inexpensive it actually is to increase your BI limits.
Property Damage (PD) - Property damage comes in when you are found at fault in an accident and you damage another vehicle (or any other property for that matter, say you drove into a fence or a bus stop). In California the lowest limit for this is $5,000 and again we definitely recommend going higher on this (really - $5,000 might cover the bumper on a new Mercedes).
Thanks for reading our first official blog post! Check back next week for part II, where I'll go over the optional coverages for auto insurance.