Crash Course: Lawyer Breaks Down Essential Auto Insurance Tips

Editor’s Note: Attorney Beatriz Trejo of the Law Office of Chain | Cohn | Clark joined Pepe Reyes on Telemundo Bakersfield to discuss motor vehicle accidents and the importance of getting the right kind of auto insurance. Read below to learn more about how you can protect you and your family. 

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What are the dangers of driving without car insurance? 

Driving without car insurance isn’t just risky — it’s a legal and financial minefield. From hefty fines to potential jail time, the consequences of being uninsured on the road can be severe and long-lasting.

1. Legal penalties: Driving without insurance is illegal. You can face fines ranging from $100 to $1,500 or more.
2. License suspension: Your driver’s license may be suspended, typically for one year, especially if you’re involved in an accident while uninsured.
3. Vehicle impoundment: The police may impound your vehicle, leaving you responsible for towing and storage fees.
4. Personal financial liability: If you cause an accident, you’ll be personally responsible for paying all damages and medical expenses out of pocket. This can amount to hundreds of thousands of dollars in severe cases.
5. Limited legal recourse: In “no pay, no play” states like California, uninsured drivers have limited ability to sue for non-economic damages like pain and suffering, even if they’re not at fault in an accident.
6. Higher insurance costs: Once you do obtain insurance after being caught driving without it, you’ll likely face significantly higher premiums as you’ll be considered a high-risk driver.
7. Criminal charges: In some cases, driving without insurance can lead to misdemeanor charges, especially for repeat offenders.

What is the first thing a person should do when suffering from a vehicle accident?

In the chaotic aftermath of a vehicle accident, knowing the right steps to take can make all the difference. Here’s a comprehensive guide on what to do immediately following a collision, from ensuring safety to protecting your legal rights.

1. Stop: California law requires you to stay at the scene of an accident to exchange information with other drivers and cooperate with the police.
2. Call 911: Immediately notify police and emergency services of the accident. Check yourself and your passengers for injuries.
3. Gather Info: If possible, collect driver’s license, vehicle registration, and insurance information from the other drivers. Ask witnesses for contact information, too.
4. Document: If possible, use photos, videos, and notes to document the accident scene, vehicle damage, skid marks, traffic signs and signals, and other relevant information.
5. Report: You must report a car accident to the police, the DMV, and your insurance company.
   1. Police: In California, accidents involving injuries or fatalities must be reported to the police within 24 hours. If police officers do not come to the scene of the accident, file a report with the nearest police department or California Highway Patrol (CHP) office. If you hit a parked car, you are required to notify the police or CHP.
   2. DMV: You must report an accident involving injuries, fatalities, or more than $1,000 in property damage to the Department of Motor Vehicles (DMV) within 10 days using California form SR-1.
   3. Insurance: Many people wonder how long they have to report a car accident to their insurance company. Since reporting requirements vary from one insurer to another, the only way to answer this question definitively is to read through your insurance policy. In general, it’s wise to notify your insurance company as soon as possible.
6. Beware: Don’t sign anything at the scene of the accident except if a police officer tickets you for a traffic violation. Don’t give a statement to the other driver’s insurer until you’ve talked to a lawyer. The insurance company may use what you say to negate or diminish your claim.
7. Get Checked Out: See your doctor for a medical exam as soon as possible, whether you’re injured or not. After a car accident, symptoms of injuries—including serious internal injuries—may not appear immediately.
8. Contact a Lawyer: You may not need a lawyer for a minor accident involving only property damage. But for any accident involving injuries or fatalities, you should contact an attorney like the ones at Chain | Cohn | Clark.

Is there such a thing as “full coverage”?

No, “full coverage” doesn’t actually exist as a specific type of policy. What is typically considered “full coverage” usually includes a combination of the following:

1. Liability coverage (bodily injury and property damage): Protects you financially if you’re found legally responsible for injuries to another person or damage to their property.
2. Collision coverage: Covers damage to your car when you collide with another vehicle or object, regardless of who is at fault.
3. Comprehensive coverage: Protects your vehicle against damage from events other than collisions (theft, vandalism, fire, natural, animal collisions, broken windshields).
4. Uninsured/underinsured motorist coverage: Probably the most important in Kern County where there are many uninsured drivers, it protects you if you’re in an accident with a driver who either has no insurance or doesn’t have enough insurance to cover your damages. Helps pay for your medical expenses, lost wages, and in some cases, property damage if you’re hit by an uninsured or underinsured driver.

Some policies that are referred to as “full coverage” might also include:

1. Medical payments coverage
2. Rental car reimbursement
3. Roadside assistance

However, it’s important to note that even these combinations don’t cover every possible scenario. There are always limits, deductibles, and exclusions in insurance policies. The term “full coverage” is often used informally, but it doesn’t guarantee complete protection in all situations.

Why is it important to review the insurance policy periodically? 

Regular review of your insurance policy isn’t just a good habit — it’s a crucial step in protecting yourself and your assets. Here’s why taking the time to periodically examine your coverage can save you from potential financial and legal headaches down the road.

1. Understand coverage: To know exactly what protection you have in case of an accident or damage.
2. Verify limits: To know the maximum amounts the insurance will pay in different situations.
3. Review deductibles: To be aware of how much you’ll have to pay out of pocket before insurance covers the rest.
4. Know exclusions: To understand what situations or types of damage are not covered by your policy.
5. Evaluate additional coverages: To consider if you need extra protections like roadside assistance or a replacement car.
6. Comply with the law: To guarantee your coverage meets your state’s minimum legal requirements.
7. Prepare for emergencies: To know how to proceed and who to contact in case of an accident.

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If you or someone you know is injured in an accident at the fault of someone else, or injured on the job no matter whose fault it is, contact the attorneys at Chain | Cohn | Clark by calling (661) 323-4000, or fill out a free consultation form, text, or chat with us at chainlaw.com.