Got You Covered

Everyone knows that automobiles need periodic tune-ups to keep them running right.  Well, the same is true for auto insurance.  Once a year or so, it pays to talk with an insurance professional and give your policy a tune-up.  Review your policy every time you experience a significant change in your life-for example, in your finances, marital status, life goals, the size of your family, or the car you drive.  Why?  First, to ensure that your home, health, and assets are adequately protected, and second, so that you can save money by purchasing on the insurance you need.

Your auto policy is actually a package of different types of coverage, the basic of which is liability coverage.  If you cause a collision, liability coverage pays for the medical expense and pain and suffering incurred by the person you hit, for the damages to his or her car, and in some cases, for injuries incurred by the occupants of your vehicle.  California requires a minimum level of liability coverage, typically stated as three numbers: 15/30/5.  This means an insurance company will pay a maximum of $15,000 for one person injured in a collision, a maximum of $30,000 for all persons injured in a collision, and a maximum of $5,000 for property damaged in a collision.

(Article taken from AAA March/April 2005 Automotive)