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

Posted on behalf of Arnold Law Firm in
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.

MINIMUM INSURANCE REQUIREMENTS IN CALIFORNIA

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.

WHAT INSURANCE ADD-ONS ARE AVAILABLE TO DRIVERS IN CALIFORNIA?

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.

MEDICAL PAYMENT (MEDPAY)

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.

UNINSURED/UNDERINSURED MOTORIST (UM/UIM)

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.

GUARANTEED AUTO PROTECTION (GAP) INSURANCE

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.

COLLISION COVERAGE

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

NEED HELP FILING A CLAIM? CALL US TODAY

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

Settlement - $3,767,000

Truck Accident

A 20-year-old man who had been married for just 12 days left home on his way to work. He was driving on Pleasant Grove Road in Sutter County in the early morning when he came upon a slow-moving truck. As he pulled out to pass the truck, the truck driver turned left in front of him. The young man attempted to steer back into his lane but his vehicle struck an un-flagged piece of metal extending from the back of the truck. He died in the resulting crash.

Expert witnesses brought in by the Arnold Law Firm proved that the truck, owned and operated by a hauling firm, should never have been on the highway that morning. Specifically, the rear and side turn signals did not work and the rear-view mirror was in a poor state of adjustment at the time of the collision. As a result, the driver, who had failed to properly inspect the vehicle before setting out that morning, couldn’t see the young man’s vehicle as it attempted to pass.

The poor condition of the truck, its lack of maintenance and the manner in which it was operated were found to be substantial factors in causing the collision that killed the young man. The testimony also established that the man had been making a lawful pass at the lawful speed limit and acted reasonably when he attempted to avoid the collision.

The man’s 20-year-old widow was awarded $3,767,000.77, his parents were awarded $185,131 and the family was reimbursed $11,899 in funeral expenses. Though money is a poor substitute for a young man’s life, this verdict demonstrates that drivers who endanger the lives of others will be held accountable for their actions.