Driving for Seniors

Auto Insurance Basics Insurance Costs To buy insurance, you pay a fee called a premium. It covers the term, or length, of the policy, which is usually 6 months or 1 year. Your policy has limits. This means that the insurance pays a limited amount for each accident or injury. If you buy physical damage coverage, you have a deductible. This is the amount you must pay before your insurance pays anything. You must buy liability coverage If you own and drive a vehicle in California, you must follow the financial responsibility laws in the state vehicle code. You must have a minimum amount of liability insurance. These are the minimum limits in California: • $15,000 Bodily Injury Liability for death or injury of one person. • $30,000 Bodily Injury Liability for death or injury of more than one person in any one accident. • $5,000 Property Damage Liability for damage to the property of other people. Should I get higher limits than the law requires? Most standard auto policies have higher limits. You may want higher liability limits than the law requires. Discuss this with your agent, broker, or insurance company. If you injure someone, they can sue you. In general, your liability limts should be high enough to protect your assets, such as your house and savings, if you are sued. You can buy uninsured motorist coverage. This pays if you are in an accident with a driver who does not have any liability insurance. Bodily injury pays medical and hospital costs. Its limits are usually the same as the limits on your liability coverage for bodily injury. You can also buy medical payments coverage. This pays medical costs if you or your passengers are injured, whether or not you are at fault. The minimum limit you can buy is $1,000 for each person injured. You can buy higher limits. 4