Even if you’re never involved in an accident, every driver should understand what type of coverage is provided by the auto insurance policy they hold. There are several clauses you should know about in your policy beyond liability insurance, which covers you in the event that you’re found at fault for negligence that causes injury to others. These clauses include:
- Med Pay: This optional supplemental coverage is added to a standard automotive insurance policy. Unlike other states, which require individuals to take out a Personal Injury Protection (PIP) policy, California does not require this expended coverage. Individuals can choose to purchase Med Pay to cover medical costs related to automotive accidents.
- Bodily Injury Liability: This coverage provides compensation for all losses, both economic and non-economic, sustained by a person who was injured through the covered party’s negligence. If you are not at fault in an accident, the other driver’s Bodily Injury Liability is required to compensate you fully.
- Uninsured/Underinsured Motorist Coverage: This clause provides coverage in the event that you or a passenger in your vehicle is injured by a driver who is either uninsured, or doesn’t have sufficient coverage to pay for your losses.