6 types of coverage

There are basically 6 types of coverage.  Some are required by law, while others are optional.  The 6 types of coverage are as follows:

1.  Bodily injury liability ? Coverage for injuries that the policy holder causes to someone other than him or herself.  In California, the minimum amount of bodily injury coverage one must have is $15,000 per person, $30,000 per accident.

 2.  Property damage liability ? Coverage for damage the policy holder causes to someone else?s property.  In California, the required minimum property damage coverage is $5,000.

3.  Medical payments or Personal Injury Protection (PIP) ? Coverage for treatment of injuries sustained by the driver and/or passengers in the policy holder?s vehicle.  (Optional)

4.  Collision ? Coverage for damage to the policy holder?s vehicle resulting from a collision.  (Optional)

5.  Comprehensive ? Coverage for damage to the policy holder?s vehicle not caused by a collision with another vehicle, including damage resulting from fire, flood, explosion, riots and theft.  (Optional)

6.  Uninsured (UM)/underinsured motorist (UIM) coverage ? Coverage for costs resulting from an accident involving a hit-and-run driver, or a driver who does not have insurance or is underinsured.  (Optional)

Driving without insurance is risky business

In California, liability insurance is mandatory in the amounts discussed above.  You have to buy it if you want to drive.  If you have an accident which is not covered by insurance, you can be fined and/or your license can be suspended for up to four years.  It is your responsibility to provide insurance for each and every vehicle you own, regardless of who is operating the vehicle.  It is illegal for your vehicle to be operated without meeting these legal requirements.

Another consequence of being involved in an accident which is not covered by insurance is that you may not be able to recover some of the damages you suffered in the accident, even if you were seriously or catastrophically injured and even if the accident was not your fault.  This harsh law, passed by California voters in Proposition 213, is meant to encourage more uninsured drivers to purchase insurance.

UM and UIM optional

If a person chooses UM, the coverage must be purchased in at least the amount of required bodily injury coverage. If more than the required amount of bodily injury coverage is purchased, UIM can be purchased in a lesser amount. In California, insurance companies are not required to provide UM coverage in amounts greater than $30,000 per person injured in any one accident and $60,000 for all persons injured in any one accident.  If UM is purchased, UIM also must be included in the policy.  Additionally, insurance companies are required to offer UIM in an amount equal to the amount of UM purchased.  They are, however, permitted to offer greater amounts of UIM than UM actually purchased. 

When you are involved in an accident in California, you must report it to the Department of Vehicles if:

1.  More than $750 in damages was done to the property of anyone involved in the accident; or

2.  Anyone was injured (regardless of how slightly) or killed.

The report must be made within 10 days of the accident using Form SR-1.  (At this writing, a fillable SR-1 form can be found at the following web address: www.dmv.ca.gov.  Upon completion, the form should be mailed to Department of Motor Vehicles, Financial Responsibility, Mail Station J237, PO Box 942884, Sacramento, CA 94284-0884.)

Some people make the mistake of believing that they only need to submit Form SR-1 if the accident was their fault.  This is not true.  You must complete the form regardless of who was to blame for the accident.  Some people also make the mistake of believing that the reporting requirement only applies to accidents that occur on public roadways.  This is also not true.  in fact, the reporting requirement applies even if the accident was on private property (your driveway, for example).  Failure to submit the SR-1 form can result in fines and/or the suspension of your driver's license. 

Under English Common Law, one who stopped to help an injured person could be held liable for failure to act with reasonable care.  For example, an off-duty doctor stopping to render aid at the scene of an accident could be sued by the victim for medical malpractice.  Naturally, this rule deterred many people from rendering assistance in emergency situations.  In 1959, California became the first state to enact a "Good Samaritan" law, altering the Common Law in order to protect do-gooders from getting sued by the people they are trying to help.

California's Good Samaritan law can be found at section 1799.102 of the Health & Safety Code.  It provides as follows:  "No person who in good faith, and not for compensation, renders emergency care at the scene of an emergency shall be liable for any civil damages resulting from any act or omission."  However, the "scene of an emergency" for purposes of this provision, "shall not include emergency departments and other places where medical care is usually offered."  In other words, as long as the aid is rendered in good faith, the person rendering the aid does not receive compensation, and the aid is not rendered in an emergency room, the do-gooder is protected from liability.