Understanding the Need for Car Insurance in CA

20April,2022
By Hoffman Brown Company | , , | No Comments
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Cars are among the most remarkable human inventions that exist. Since their advent, they have simplified transport greatly, made running errands more effortless, and largely changed lives. For instance, with a car, you can travel several miles in just a few minutes, which would be difficult if you chose to go on foot.

However, cars can only work so much. With time, they suffer wear and tear and eventually stop working altogether. Therefore, it is prudent to incorporate suitable preventive measures to increase the longevity of your car, one of which includes purchasing comprehensive car insurance.

What is Car Insurance?

Car insurance refers to a policy that protects the policyholder from the financial losses associated with car damage. This policy pays for the cost of repairing or replacing a damaged car, provided it results from a covered peril. Thus, it saves the car owner from paying for the damages out of pocket.

Types of Car Insurance Coverages

There are different car insurance coverages, each providing protection against a specific peril. They include:

  • Collision coverage – As the name implies, this coverage pays for the resulting damage if a car collides with another vehicle or any obstacle.
  • Comprehensive coverage – This policy provides coverage for perils other than collision. For instance, if an electricity pole falls on your parked car, causing it to suffer a huge dent, comprehensive coverage can pay for the resulting damage. Examples of such perils include, among others, theft, vandalism, fire, and natural disasters. Take note that your car insurance policy will only cover the damage emanating from named perils. In other words, even if your car suffers damage from a peril other than collision, there is no guarantee that your policy will provide coverage.
  • Liability coverage – Apart from injuring the passengers, car accidents can also injure third parties such as pedestrians. Liability coverage pays for the costs associated with third-party injuries and property damage, including medical expenses, legal fees, compensation, and repair costs.
  • Uninsured motorist coverage – If you get involved in an accident with an uninsured driver, this coverage will cover the associated costs. The same applies to underinsured motorists.
  • Medical payments coverage – This portion of car insurance pays for the treatment costs for injured passengers of the insured vehicle.
  • Personal injury protection (PIP) – This coverage complements the medical payments coverage by paying for your medical expenses if you sustain injuries from a car accident. This policy can cover additional costs such as lost income and home care services in some instances.

Other car insurance coverages include towing, rental reimbursement, ride-sharing, gap, and classic car insurance. Take note that for every coverage you choose, you will have to pay a deductible out of pocket before your policy provides coverage.

How to Get the Right Car Insurance

With the right car insurance policy, you can protect yourself from all financial burdens associated with accidents and car damage. Contact us at Hoffman Brown Company for more information on what you need for your personal auto insurance coverage.

COVID-19 Update:

The Coronavirus, officially COVID-19, has become a global health emergency. One of the measures Hoffman Brown Company has taken to keep our CLIENTS and Teammates safe was to design a complete virtual work environment. For the foreseeable future, our colleagues will be conducting business virtually to avoid any disruption in our ability to serve you. These measures are based on the CDC’s guidance and will evolve with the situation. Please know that we are fully functional, available and look forward to being of service.