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California living can be expensive— high rent and real estate prices, skyrocketing electric bills, the cost of filling up your car… it seems like the list of things that cost you more grows by the minute. California insurance coverage can be expensive too, unless you know how to make the most of your insurance dollar.

It pays to understand insurance no matter what kind of coverage you're in the market for. Along with great rates on auto insurance, Esurance offers features to help you manage your policy and understand more about insurance in general. The Esurance Coverage Counselor explains California insurance coverage requirements to you, and makes it easy for you to know which coverages, limits, or deductibles are right for you.

The amount of auto insurance you need as a California driver depends on a variety of factors. When you choose your coverage limits and deductibles, consider the various risks that you, your passengers, and your auto are likely to face. You also need to consider the assets you own, which your coverage helps protect. Drivers who meet certain income requirements may qualify for the California Low Cost Auto Insurance Program, which offers discounted rates on basic liability coverage. To learn more, visit the California Department of Insurance or call 1-866-602-8861.

Below are explanations of some of the coverages you'll need to consider as a California driver when you buy your insurance.

• Bodily injury and property damage

Bodily injury and property damage are the only mandatory coverages in California. Keep in mind that if you select limits that are too low, you could be putting yourself at risk financially. For example, if either you or a driver covered by your policy causes a serious injury or accident where damages exceed your limits, you'll be held responsible for the amount above your limits.


To make that payment, you could be forced to liquidate property, savings, and other assets, or your future earnings could be attached. By purchasing liability limits to account for both your current assets and future net worth, you can help protect yourself against this risk.


• Uninsured/underinsured motorist bodily injury limits

If the other driver is uninsured, this coverage can generally pay up to the limit you purchase. If the driver is underinsured, this coverage typically pays the difference between what's covered by the other driver's insurance and what's covered by your bodily injury coverage. If the limits you purchase are lower than an accident's costs, you'll be responsible for paying the amount over your limits, unless you're covered by health insurance.


• Uninsured motorist property damage

If you don't have collision coverage, uninsured motorist property damage coverage pays up to $3,500 for repairs to the insured car. If you have collision, uninsured motorist property damage pays your collision deductible. This coverage alone is not enough to cover all potential car repair/replacement costs, and only applies if you're involved in an accident caused by a driver without coverage.


• Comprehensive

If your car is financed or leased, the finance company will probably require that you carry this California insurance coverage. If you have a newer vehicle or one in excellent condition, you may need this coverage to replace or repair the vehicle in case of loss. If you have an older car or one in poor condition, you may not want to pay for this coverage.

These are just a few of the options you should consider when you're buying your coverage. To find out more about the coverages, limits, and deductibles available to you as a California driver, check out the Esurance Coverage Counselor. Just enter some information about your cars and your household, and you'll receive your own personalized California insurance coverage analysis that instantly that explains what you need and why.