Being in unfortunate accident is bad enough, but what if the person who hit you is uninsured? Or what if you hit someone and you don't have insurance coverage? Here is some information that may be useful:

*Everyone must have liability coverage

You must have liability coverage to register your car. It is illegal driving without insurance. Your insurance carrier reports to California Department of Motor Vehicles, if you purchase auto insurance or if you stop paying your premium.

*Minimum Bodily Injury Liability Limits

  • $15,000 for the death or injury of any one person. If one person is injured in the accident, your coverage pays up to $15,000.
  • A total of $30,000 for the death or injury of more than one person in any one accident. If 2 or more people are injured, the coverage pays up to $30,000. The coverage will not pay more. The injured people share the money.
  • This coverage applies to injuries that you cause to someone else.

*Minimum Property Damage Liability Limits

  • $5,000 for damage to the property of other people.
  • This pays for damage you cause to someone else's car, or to objects and structures that your car hits.

*Recommendations

  • It is always recommended to have higher policy limits, because you can be sued to any additional costs above your policy limits, if you cause the accident. You can lose your savings, assets and have your wages garnished.
  • If the person responsible for your accident doesn't not have insurance or does not have enough policy limits to fully compensate you for your damages, it is also recommended to have Uninsured/Underinsured Motorist coverage in your own auto policy.
  • Finally, people who do not have liability insurance, even if not at fault, cannot recover general or non-economic damages like pain and suffering in their claims against responsible driver, under Proposition 213 in California.

(1) http://www.insurance.ca.gov/