Benefits of Having Insurance Policy Add-Ons When Filing an Auto Accident Claim

man cupping his hands to hold a car and an umbrella Although having the minimum insurance requirements is better than having no insurance at all, having more than just a basic policy can be beneficial if you are ever injured in a car crash. This is particularly true if you suffer severe or life-changing injuries.

Below, our car accident lawyers in Sacramento discuss how insurance add-ons may provide compensation for damages you suffer in a crash caused by another driver.


Per California’s Insurance Code, the minimum requirements for liability insurance in the state are:

  • $15,000 for injury/death to one person
  • $30,000 for injury/death to more than one person
  • $5,000 for damage to property

Drivers can opt-out of purchasing an insurance policy by making a $35,000 deposit to the California Department of Motor Vehicles (DMV) to ensure there is collateral in case of an accident. Drivers can also opt-out by obtaining a self-insurance certificate from the California DMV or a $35,000 surety bond from a licensed issuer in the state.


There are several insurance coverage add-ons available to California drivers, including collision and comprehensive coverage, which are used to cover physical damage to your vehicle. While these coverage options are not mandated by the state, most lenders require this type of coverage.

Additionally, there are some coverage add-ons that help pay for medical treatment while you wait for a settlement.


MedPay is a no-fault insurance policy that provides compensation for medical bills. Drivers can purchase a minimum of $1,000 in MedPay coverage for each person injured. You may want to purchase more, as $1,000 may not cover much.

This insurance add-on is a good option for people who do not have a health insurance policy and may have concerns about being unable to pay medical bills while waiting for a settlement.


One of the most important types of add-ons California drivers should consider purchasing is UM/UIM coverage.

This insurance add-on covers medical bills and other damages after an accident with a driver who does not have enough liability insurance to cover your expenses or does not have insurance at all.

While California drivers are required to carry liability insurance, research shows that one in seven drivers do not have enough liability insurance to pay for damages associated with an accident.

Technically, California does not require drivers to purchase this coverage. However, you are required to reject it in writing, which means many drivers may have this coverage.


If a driver who caused your accident does not have more than the minimum requirements for property damage liability, and your vehicle is totaled in the accident, having GAP insurance may come in handy.

GAP insurance helps cover the difference between the value of a vehicle and the amount you owe on the lease or loan.

Not every insurance carrier offers this coverage, but many car dealerships do, so it is important to check the fine print when purchasing or leasing a new vehicle. If GAP insurance is included in your contract, you may not need to purchase it from your insurance carrier.


Liability insurance does not pay for damage to your vehicle from a crash caused by another driver. That is why you may want to purchase collision insurance to pay for repairs to your vehicle.

Collision coverage pays for damage caused by physical contact with another vehicle or a collision with:

  • Deer
  • Rock
  • Tree
  • Guardrail
  • Building
  • Person


If you were injured in an accident due to another driver’s negligent actions, you may be able to recover compensation for your injuries. Our attorneys are prepared to review your options for obtaining compensation.

Our attorneys have decades of combined experience negotiating with insurance companies and have successfully recovered millions on behalf of our clients.

We can review your claim during a free consultation to see how we may be able to help you with your unique situation.

Call us today at (916) 777-7777