Automobile Insurance

A question you might ask yourself is: why must I carry auto insurance? The best answer would be to protect your assets. However, there are state requirements as well, the purpose of this is to protect the general public from any damage you may cause to someone both physical and to their property.

Image of Young Couple Washing Convertible Car - Terry Hayes Insurance - Sacramento Auto Insurance

The State of California has minimum auto insurance limits you must carry in order to register your car, commonly referred to as the state minimum requirements of 15/30/5.

 What limits are best for you is something one should give serious thought to.

While the general concept for liability insurance is to protect the public, in reality it protects you and your assets as well as your potential assets of future earnings. Where should you get started?

First you should ask yourself if you have enough coverage in case of an incident occurring. There are limits associated with liability coverage and it is always recommended by the insurance industry that you protect yourself to the fullest by getting the highest limits that best covers your assets.

 State limits may allow you to register your car, but if you cause a serious accident, especially if there is more than one car involved that you hit, minimum limits can easily be exceeded which leaves you and your assets at risk.

Here we explain Auto Insurance coverage.

Bodily Injury Liability (BI) covers other people's bodily injuries or death for which you are responsible. Claims for bodily injury may be for such things as medical bills, loss of income or pain and suffering. The coverage is limited to your policy’s limits of per person and per accident. It does not cover you for your injuries. Property Damage Liability (PD) covers someone else's property. Usually it is their car, but it could be a fence, a house or any other property damaged in an accident. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object. So if you hit someone’s car or a person’s fence or even the state’s guardrail in an accident your Property Damage Liability coverage will pay up to your limit amount. In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Therefore, it is a good idea (and usually an insurance company requirement) to have the same level of coverage for all of your cars.

Image of Couple Driving - Terry Hayes Insurance - Sacramento Auto Insurance

Uninsured Motorist Bodily Injury (UM or UMBI) is another coverage you may want to consider. Uninsured motorist covers you if the other party was at fault and you were injured and they were not insured. Recent reports states that up 20% of drivers on the road are uninsured, UM covers you, the insured members of your household and your passengers for bodily/personal injuries, damages, or death caused by an at-fault uninsured. If you are involved in an accident where the other driver is at fault but has no insurance, your policy will cover your medical expenses, up to the limit on your policy.

There is also Underinsured Motorist Bodily Injury (UNDUM) which covers you, the insured members of your household and your passengers for injuries, damages or death caused by the negligence of a person with insufficient insurance. If you have an accident with a person whose coverage cannot meet your damages, your policy will meet the difference-up to the limit of liability listed on your policy. Uninsured/Underinsured Motorist coverage is not required however the auto insurance provider must offer you the coverage and you must decline in writing if you do not want them as part of your policy.

There are also Uninsured and Underinsured Motorist Property Damage coverage. Uninsured Motorist Property Damage (UMPD) covers your auto when property damage is sustained by an insured and the negligent operator does not possess insurance. If you do not have Collision coverage, Uninsured Motorist Property Damage coverage pays up to a certain amount for repairs to the insured car. Usually the limit is $3500.

Image of Freeway Interchange - Terry Hayes Insurance - Sacramento Auto Insurance

Physical Damage
There are also two very important types of coverage that you might want to explore. They are Physical Damage coverage or Comprehensive coverage and Collision coverage.

Comprehensive Coverage is also sometimes referred to as “Other Than Collision” or OTC. Comprehensive covers your vehicle in the event of fire, theft, vandalism, hail storm damage or any other specified peril minus the deductible you agreed upon when purchasing your insurance. This also includes glass breakage.

Collision covers damage to your car when your car hits, or is hit by, another vehicle, or other object. It helps pay to fix your vehicle less the deductible you choose. To keep your premiums low, select as large a deductible as you feel comfortable paying out of pocket. For older cars, consider dropping this coverage, since coverage is normally limited to the cash value of your car.

Physical Damage coverage is not required by the state as they are more concerned about your ability as a driver to pay for damages you cause others with your Liability coverage, but if you have a loan or a lease then the lien holder will require it. Even if your car is paid for you may want your vehicle protected in the event of an accident or loss. It is Collision and Comprehensive coverage that you would want on your vehicle to pay for repairs or for the actual cash value if it was found to be a total loss.

There are also other types of coverage available such as rental reimbursement, towing and roadside assistance, loss of use, medical payment, etc.

Sometimes people refer to their car insurance coverage as “full coverage.” While there is no coverage that can cover every situation, what is commonly being referred to as full coverage is at least the state minimum Liability coverage along with Comprehensive and Collision coverage.

Image of Drive in Country - Terry Hayes Insurance - Sacramento Auto Insurance

There are many Auto Insurance discounts available including, but are not limited to...

  •  Home, Life and Auto with same company - Account Credit
  • Driver Training
  • Hybrid Vehicles
  • Good Student
  • Good Driver Discounts
  • Affinity Discounts

Please call or contact us to find out what coverage best fits your needs. We will work to find you the best coverage at the lowest price. We proudly serve the Sacramento, Roseville, Orangevale and Folsom areas.

Terry Hayes Insurance Agency
CA Lic# - 0D62017      9266 Madison Avenue, Orangevale, CA 95662       Phone 916-988-2402