Does it matter what a car insurance company in Los Angeles considers full coverage? Isn’t it the same around the country? Isn’t it the same around the world? On the contrary, the legal definition of full car coverage is not set in stone around the country. The term is not even legally protected. A rogue company can come in and offer you window screen insurance and claim it is full coverage, and it is not against the law. Although in that case, you could sue them for misleading advertising. Nevertheless, what is considered full coverage in California is not what is considered full coverage in other places.
Full Coverage in California
The legal minimum for full coverage in California is the state’s minimum liability coverage. This means that the absolute floor is $15,000 in bodily injury coverage (for other people, not the people in your car). It is up to $30,000 per accident and up to $5,000 in property damage coverage.
This may be surprising to some people, especially those who hit an expensive car or truck and cannot understand why their “Full Coverage” insurance will only pick up $30,000 worth of the damage. People who are involved in very big accidents, and who have poor quality insurance, can end up losing everything if they are found to be at fault.
The Optional Extras
When you are given full coverage in California, you are then given the option of expanding your insurance so that it includes optional collision and comprehensive insurance. If you have just picked up insurance and it is overly expensive, it is probably because you have got full coverage with collision and comprehensive insurance put on top.
On the other end of the scale, if you have just picked up insurance and it is overly cheap, it is probably because you do not have collision or comprehensive insurance. At best, you are probably covered for some of the damage you caused, but not all of it, and especially not for the damage done to your vehicle or people within the vehicle.
The average for California’s insurance policy, for a person who has been driving for 20 years and who has not had any accidents, is $636 for the state minimum. However, most people have some sort of collision or comprehensive insurance, which bumps up the state average to $1,780 per year in California.
What You Now Know About Full Coverage
In short, if you have full coverage, it means you can legally drive your vehicle in California. It also means there is no guarantee you will be paid for damage to your vehicle unless somebody else does it and they are insured. When you buy insurance, you need to understand that what you are buying makes you legally able to drive but may not offer you the sort of financial buffer you need to keep yourself out of debt. Legally, your full coverage insurance doesn’t have to come with collision insurance. If you are looking for a car insurance company in Los Angeles that offers a good deal, that offers fair full coverage insurance for a good price, then look no further than Mona’s Insurance.