Why is Uninsured/Underinsured Motorist coverage such an important part of my auto insurance policy?
Unfortunately there is confusion when it comes to the different types of coverage found on one’s personal auto insurance policy. Collision, Comprehensive, Property Damage, Liability, Medical, Per Occupant, Per Incident, Uninsured Motorist, Underinsured Motorist, these are some of the terms and/or coverages you’ll find in your auto insurance policy, but are familiar with what they mean? Perhaps more importantly, are you familiar with what the ramifications are if you do not have sufficient amounts of coverage in these areas?
California state law states every vehicle shall have a minimum amount of insurance coverage in order to be lawfully driven. Those minimum limits are 15/30/5. This translates to A) $15,000 maximum injury or death coverage per person occupying the vehicle B) $30,000 maximum injury or death per vehicle per incident regardless of how many occupants and C) $5,000 maximum for property damage caused. These minimum amounts of coverage were established in the late 1960s, and have not been adjusted since.
So, why is uninsured/underinsured motorist coverage so important?