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Understanding the Calif. Auto Insurance Declaration Page

January 18, 2011

By Barbara Haubrich-Hass, ACP/CAS

Since the majority of lawsuits involve motor vehicle collisions, it is important to understand the automobile Insurance Declarations page.  Below is a quick explanation:

Bodily Injury – Bodily Injury coverage protects you and your assets if you cause an accident and cause injury to another. This is the coverage that would be available to the injured person if he or she made a claim and/or filed a lawsuit against you. The State requires that you carry at least $15,000/$30,000. What this means is that your insurance company will pay personal injury damages of up to $15,000 per person per accident, but not more than $30,000 total per accident regardless of the number of persons claiming injuries.

Bodily injury limits come in many amounts: $15,000/$30,000; $25,000/$50,000; $30,000/$60,000; $50,000/$100,000; $100,000/$300,000, etc. To determine your coverage needs, consider what coverage you would need to protect your assets, home, and your family.

Uninsured Motorist/Underinsured Motorist (UM/UIM) - After your bodily injury protection, this is probably the most important coverage. This protects you and your family if you are injured in an accident, that is not your fault, and the other party is either 1) Uninsured; or 2) Does not carry enough insurance to compensate you or your family for your injuries and damages. While the State of California requires all drivers to carry insurance, there are many uninsured drivers still out there. The minimum limits of insurance required by the State are $15,000/$30,000 and may not be enough to compensate you and your family if you are involved in an accident with someone who carries minimum limits.

A good rule is to carry as much UM/UIM coverage as you would Bodily Injury coverage. You want to be sure that you adequately protect your assets with your BI coverage and you also want to be sure that you protect you and your family with your UM/UIM coverage. Under California Law, if you choose not to have UM/UIM coverage, you must sign a waiver denying this coverage.  

Medpay (MP) - This coverage is available to pay your medical bills if you are involved in an accident, regardless of fault. This coverage will pay up to its limit for a single accident for you and each person in your vehicle that sustained an injury. This portion of your policy can also cover you if you are in someone else's vehicle and either they do not have MP coverage or that coverage has been exhausted. This coverage is only for you and others in your vehicle. It does not cover persons in any other vehicle involved in the accident.

Medpay coverage designated as Excess Medpay (MPX) will only pay after your group health insurance (if any) has paid. It will then pay your co-pays or out of pocket expenses not covered under your group health policy.

Property Damage - This coverage is for damage sustained to any vehicle (other than your own) or other property (highway signs, telephone poles, structures, etc) when you are involved in an accident. The minimum coverage is $5,000, an amount insufficient to repair most vehicles. This coverage is for all damages in a single accident, so if you are involved in a multiple car accident, damage property, or you damage a structure, you may not have enough coverage.