Here is a simple guide to understanding your insurance coverages.

I'm confused about the types of coverages I am offered in my California insurance policy.

This guide will help you understand your insurance coverage. First pull out your declaration page, the first page on your policy. Each of the letters and important descriptions are listed below.

Bodily injury is usually summarized by a "BI" on your policy. This figure represents the amount of money that an insurance company will pay for damages that you cause to another motorist. It is NOT coverage that pays you if you are involved in an accident.

UM, or uninsured motorist coverage pays damages to you if a motorist strikes you and it is their fault and they do not have insurance or inadequate insurance. Uninsured motorist is also the same as underinsured motorist coverage, and in California it is a very useful coverage for you to have.

Medical pay, or medpay is an abbreviation for medical payments coverage. This coverage allows you, irrespective of fault, to get your medical bills paid. This can also mean deductibles, out of pocket expenses for such things even as casts, canes, wheelchairs and other devices that are not normally covered by medical insurance. Medical payment, or medpay also pays in addition to your other insurance coverages unless it is called excess.

Insurance coverage is not a difficult thing for you to understand once you know the familiar terms. Most importantly, it is absolutely necessary that you consult with your insurance company representative to increase or hold the maximum uninsured motorist coverage possible, because uninsured motorists are prevalent in California and when they hit you or hit you and run from the scene, your damages can be quite severe.


James Ballidis is the managing attorney for Allen, Flatt, Ballidis & Leslie and has been practicing personal injury law for 25 years.