The next time you're really bored, read your auto policy cover to cover. Hopefully, you have more of a life, so the following is a brief desciption of typical California auto coverages. The actual wording of the policy takes precedence, of course.

Liability

 

Insurance is usually expressed as a series of numbers such as 25/50/25. These are limits, in thousands, that the company will pay... $25,000 per person, $50,000 total for bodily injury sustained by the other party, plus an additional 25,000 for damage to their property. As a minimum, you should carry limits equal to your net worth. Payment is made when you are legallyresponsible.

 

Medical

 

Medical Insurance will pay for auto related injuries. No legal liability here, just the fact that you or your passenger were injured in or by a car. Usually written in small amounts, say $5000 per person, as it is just intended to pay the bills not covered by other insurance.

 

Comprehensive and Collision

 

Comprehensive and Collision Insurance provide coverage for your car. Collision is when the car is in an accident, comprehensive is for pretty much everthing else... fire, theft, vandalism, earthquake, flood. Subject to a deductible (the amount you pay). Example of the difference between the two: Timmy gets the step stool and finds he can reach the button that closes the garage door on the hood of your new Porsche. That's comp. Later, still irritated, you back out too fast and hit the garage door. That's collision (a second deductible, and not a great day, either).

 

Uninsured Motorist

 

Think of Uninsured Motorist (UM) as 'reverse' liability insurance. The person who runs into our car is obviously at fault, but has no insurance or assets. Your company becomes his. Payments include BI, PD, or your deductible.