Explanation of Auto Insurance Coverage

The Deductible

Auto insurance coverage includes a deductible amount, similar to your health insurance. A deductible amount may be $250, or $500 or another amount. This is the amount you will have to pay out of your pocket before the insurance company will pay the claim, for an accident repair, for example. The higher the deductible, the less money you will pay monthly on your insurance bill. Consumers with limited cash flow may choose a higher deductible, in order to keep their monthly bills lower. Having an emergency-only credit card or savings account with the amount of the deductible available will make it easier for you if you ever need to pay out on the deductible.

Mandatory Auto Insurance Coverage

In California it is mandatory auto insurance coverage, including types of coverage required and minimum amounts of coverage and deductible. You can find out the state minimums before you talk to the insurance company.

  • Bodily Injury to Others: $15,000 per person / $30,000 per accident
  • Property Damage Liability: $5,000 per accident

Liability Coverage

There are two types of liability coverage on an auto insurance policy: bodily injury and property damage. Liability is one of the types of coverage which is mandatory in most states, and includes minimum coverage amounts. This the coverage for when you are at fault.  Liability coverage is defined with three parts: bodily injury per person, bodily injury total, and property damage. The numbers can look alarming to the average consumer, but seeing the liability as 100/300/50* is quite common (*in thousands, that would be $100,000/$300,000/$50,000).

Comprehensive Coverage

Just like it sounds comprehensive will cover many incidents, including fire, theft, animal damage, weather damage including wind or hail damage. This type of coverage is often required and recommended for brand new cars, leased cars, or when your car still has a high value. You will still have to pay your deductible before the insurance company covers the claim. For older cars that are not worth much anymore, that you own outright, go with a minimum amount or drop this coverage completely.


Collision is another coverage which requires a set deductible. If your car hits another car or an object, this is the coverage you will need. For a car you own, consider the current value of the car and how much collision insurance will cost you, and if it's worth the cost.

Uninsured Motorist and or Underinsured

Some states do required uninsured motorist coverage, while most do not. Some insurance policies do not distinguish between uninsured motorists who have no coverage at all and underinsured motorists who may not have adequate coverage. If this coverage is an option, where you live could help you determine if you need this coverage or not.

Personal Injury Protection

Personal Injury Protection (PIP), is extra medical payment coverage. Depending on the state, and your coverage, you may already be covered for medical payments under your current medical insurance. For some consumers, paying for extra medical coverage is like making a double payment on the same type of coverage. If you are trying to save money on your auto insurance and you have a solid medical insurance plan, you may not need to pay for extra medical payment coverage.  Anyone with life insurance may also have some of this covered as well, as some PIP coverage includes funeral expenses. Another aspect of PIP could also be covered for you as well, if your employer had good short-term disability or long-term disability insurance. Find out the types of coverage you already have, before doubling up on coverage.

Rental Car

Optional rental car coverage will not cover rentals for repairs unrelated to an accident. If you happen to break down, this coverage will not apply. It is not an expensive option, but it's not really needed either. If you have Triple A, which will tow you for a break down or an accident, you don't need this additional rental car coverage.

Emergency Road Service

Most auto insurance companies also offer emergency road service.

Explanation of Homeowner's Insurance Coverage

The Facts About California Home Insurance

When people shop for home insurance, they are actually seeking not just one type of coverage but possibly several different varieties. Homeowners insurance, renters insurance, and condo insurance are all typically included within the category of home insurance. Whether you own the property that you live on or whether you are renting it short term, you need to have insurance coverage to guard against disasters and losses.

Homeowners, Condo, and Renters Policy Types: The Differences

A homeowners policy is for people who own their own home. This may be either a house or a condominium: Essentially, if you are making payments on the home with ownership as the end goal you will need homeowners insurance. This type of policy will cover both the outside of the home and all the contents of your home. It will cover the majority of natural disasters (certain disasters like earthquakes may be excluded but you may add extra coverage for that specific purpose) and will allow you to replace or rebuild damaged property. If your home is broken into by a thief and items are stolen your insurance will help replace stolen items and pay for any damage in terms of vandalism that the thief did.  With a renter's policy, the coverage includes the inner contents of the home, apartment, or room that you are renting. This is coverage for the break-ins, the natural disasters, fires, and other circumstances that are beyond your control. Even though your landlord will have a homeowners policy on the place you are living, it does not cover your own personal items as a renter, which is why renters insurance is essential.  You may be very surprised to see the range of prices you'll get in home insurance quotes. You can sometimes save hundreds of dollars, or even more, simply by choosing one company over another. However, it is important that you get quotes only from reliable top carriers. Your local independent agent is the best resource for this since they can accumulate multiple quotes from the top carriers for you online. Your independent agency will give you the power to compare all the best policy options conveniently at home!