California is an at-fault state. That simply means that if you cause a car accident, your liability insurance will help pay for the injuries and damages of other drivers and passengers. If someone else causes an accident, their liability insurance will help pay for your injuries and vehicle repairs.
Liability insurance is composed of two parts: bodily injury liability coverage and property damage liability insurance. The first part will help pay for injuries and even death of other people if you are at fault. The second part will help pay for the necessary repairs to other vehicles, again if you are at fault. Let’s take a deeper look.
If you’ve caused an accident, you’ll pay your deductible and then your insurance will kick in. If you have the minimum amount of liability, your insurance company will pay $15,000 for one person’s injuries and $30,000 if two or more people are injured. The insurance company will also kick in $5,000 for property damage, minus your deductible.
Depending on the severity of the accident, hospital and repair bills may easily be more than your minimum liability. That means you’ll not only be responsible for your own injuries and damages, but anything over your liability limits for the other people’s costs. If your liability is not enough to cover someone’s injuries and damages, you can be sued and may lose your assets. You can increase your liability limits – some insurance companies set a cap at $300,000 or $500,000 for bodily injury/death liability.
Your liability insurance will not pay a penny for your own costs if you are determined to be at fault in a wreck.
Let Freeway agents work with you to find the cheapest auto insurance available – even if you have a problem driving record.