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Auto Insurance Made Easy

Understanding car insurance is often like trying to learn a foreign language. It can be downright confusing and intimidating when you don't understand the terms of your state's car insurance or your California car insurance.

Fortunately, there’s help. Here is a quick reference designed to help you understand some of the most common kinds of coverage. This reference is offered by Direct Choice Insurance .com, California car insurance specialists.


Liability covers bodily injury and property damage (BI/PD). This covers your legal liability, or your responsibility, up to the dollar limits you select. This part of your car insurance covers the damages caused to others in an accident. In most states today, including California , liability insurance is mandatory.

Under BI/PD, your car insurance company pays for damages to an injured person and property damage that you are legally responsible for as a result of an accident. If you’re sued after an accident, your insurance company will pay for a lawyer to defend you if that eventuality is included in your auto insurance policy.

Liability limits usually appear as three numbers, for example, 25/50/25 or 100/300/100. The first number refers to the maximum amount, in thousands, that your insurance company is obligated to pay for bodily injury per person. The second number is the maximum that is paid for bodily injury per claim. The third number represents the maximum amount your car insurance company is obligated to pay for property damage you cause.


Collision coverage on your California or state car insurance company covers damages caused if your vehicle collides with another vehicle or object. A deductible amount is selected for collision coverage when you purchase your car insurance policy. The deductible is what you are required to pay before your insurance company starts picking up the tab. Remember, the deductible amount is the amount you need to pay in the event of a claim on your car insurance policy.


Comprehensive covers damage caused by natural and unnatural events outside of a car collision—such as fire, theft, vandalism, hail, or flood. It also covers damage caused by your vehicle colliding with an animal. If your car is stolen, it will cover the cost of a rental, which is often subject to a daily limit. Like collision coverage, a deductible usually applies.

Medical Coverage

Depending on which state you live in, you may have Medical Payments coverage or Personal Injury Protection (PIP) coverage available to you. These both work a little differently, but they provide coverage for your medical care when you are involved in a car accident.

An independent insurance agent or California car insurance agent will help you determine the price, coverage, and service that will meet the needs for you and your family.

To find an independent California car insurance agent, visit www.Direct Choice Insurance .com

Did You Know?

Liability auto insurance is for bodily injury and property damage. This covers your legal liability, up to the dollar limits you select, for damages caused to others in a covered vehicle accident. In most states today, including California , liability insurance is mandatory.

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