Insurance Guide
Protect yourself and your family with the right insurance coverage
As personal injury attorneys who focus on auto accidents, we're often asked: "How much insurance is enough?" The answer is always: "It depends on what you have to lose."
After decades of representing accident victims in San Francisco and the Bay Area, we've seen countless cases where inadequate insurance left families devastated—not just from their injuries, but from financial ruin. The right insurance coverage isn't just about following the law; it's about protecting everything you've worked for.
Your insurance needs directly correlate with your assets and income. Consider:
If you own your home, you have significant assets at risk. Insufficient coverage could result in losing your home to pay for accident damages.
Retirement accounts, savings, investments, and other wealth can be seized to satisfy judgments if you're underinsured.
Future wages can be garnished for years to pay accident claims. Your earning potential is an asset that needs protection.
You're not just protecting yourself—you're protecting your spouse, children, and passengers who rely on you.
Bottom Line: If you have assets worth protecting or significant earning potential, minimum coverage is NOT enough.
First, it's important to distinguish between the types of coverage available in California in order to know what suits your specific needs.
Covers the losses, damage, or injury you cause to others. This is the minimum required by California law.
Warning: Does NOT protect you or your vehicle. Only covers the other party's damages.
Comprehensive protection including collision, comprehensive, medical payments, and uninsured/underinsured motorist coverage.
Recommended: Protects you, your vehicle, and your passengers in virtually all scenarios.
Takes care of your vehicle in case of an accident where you are at fault or in single-vehicle accidents.
Our Recommendation: Carry a $500 deductible or less. This makes getting your car fixed after an accident much easier and quicker.
Covers damage to your car in "no fault" situations where no other driver is responsible.
Our Recommendation: Carry a $100 deductible or no deductible. San Francisco's urban environment poses numerous comprehensive risks.
Pays for medical treatment after an accident, regardless of who's at fault.
Do You Need It? Medical payments coverage is not essential if you have good health care coverage. However, if you don't have good health insurance, you should consider carrying at least $5,000-$10,000 in med pay coverage.
⭐ Most Critical Coverage ⭐
This is EXTREMELY important to carry—and here's why
• 16.6% of California drivers are UNINSURED (approximately 1 in 6 drivers)
• Many drivers carry only minimum liability ($15,000/$30,000 in California)
• Medical bills from serious injuries easily exceed $100,000+
• Without UM/UIM coverage, YOU pay the difference
Protects you and your passengers when the at-fault driver has NO insurance at all. This includes hit-and-run accidents where the responsible driver is never found.
Example: An uninsured driver runs a red light and T-bones your car, causing $200,000 in medical bills and lost wages. Without UM coverage, you're on your own.
Covers you when the at-fault driver doesn't have ENOUGH insurance to cover all the losses sustained. This is actually more common than uninsured drivers.
Example: A driver with minimum $15,000 liability causes an accident resulting in $150,000 in damages. UIM coverage pays the $135,000 difference.
Some policies extend UM/UIM coverage beyond just accidents in your own vehicle:
A client was rear-ended on Highway 101, suffering severe back injuries requiring surgery. The at-fault driver had only $15,000 in liability coverage—California's minimum. Our client's medical bills exceeded $180,000, plus lost wages of $40,000.
Without UIM Coverage:
Client receives only $15,000. Out of pocket: $205,000+
With $100K/$300K UIM:
Client receives full $100,000 for single victim, plus the $15,000 = $115,000
UM/UIM coverage literally saved our client from financial devastation. This is why we call it the most important coverage you can buy.
Based on decades of representing accident victims in California
When clients ask us "how much insurance is enough," we recommend that individuals generally should have at least:
$100,000/$300,000
Liability Coverage
$100,000/$300,000
Uninsured Motorist
$100,000/$300,000
Underinsured Motorist
If you own a home or have significant personal assets or wealth, you want to have MORE coverage to protect what you've built:
Consider increasing to $250,000/$500,000 or even $500,000/$1,000,000 liability coverage
Check your homeowner's policy to confirm you have "umbrella" or "excess" liability coverage. This provides an additional $1-5 million in liability protection that covers both your auto and home.
Cost-Effective: Umbrella policies are surprisingly affordable (often $200-400/year for $1M coverage) and provide exceptional protection for high-net-worth individuals.
Whatever liability limits you choose, match them with equal UM/UIM coverage. If you have $250K/$500K liability, get $250K/$500K UM/UIM.
$100 or $0 Deductible
Lower deductibles for comprehensive make sense because these claims (theft, vandalism, weather) don't affect your rates as much as collision claims.
$500 or Less
This makes getting your car fixed after an accident much easier and quicker without a huge out-of-pocket expense.
| Coverage Type | Minimum Recommended | Homeowners/High-Asset |
|---|---|---|
| Liability | $100K/$300K | $250K/$500K or higher |
| Uninsured Motorist | $100K/$300K | $250K/$500K or higher |
| Underinsured Motorist | $100K/$300K | $250K/$500K or higher |
| Medical Payments | $5K-$10K (if no health insurance) | $5K-$10K (if no health insurance) |
| Comprehensive Deductible | $100 or $0 | $100 or $0 |
| Collision Deductible | $500 or less | $500 or less |
Note: Homeowners should also verify they have an umbrella/excess liability policy for an additional $1-5M in protection.
California's minimum ($15K/$30K) is woefully inadequate. A single serious injury easily exceeds these limits.
With 1 in 6 drivers uninsured, this is gambling with your financial future.
You're protecting others better than you're protecting yourself.
A $1,000-$2,000 deductible saves a few dollars monthly but creates financial hardship after an accident.
As your assets grow (home equity, savings, retirement), your insurance should grow too.
Don't wait until after an accident to realize you're underinsured. Take these steps now to ensure you have adequate protection:
Look at your current liability, UM/UIM, and deductible amounts. Compare them to our recommendations above.
Get quotes for increasing your coverage. The cost difference is often surprisingly small compared to the protection gained.
As your life changes—buying a home, having children, building wealth—your insurance should change too.
This relatively inexpensive addition provides millions in extra liability protection for both your auto and home.
The best time to increase your coverage is before you need it. A few extra dollars per month in premiums can save you from financial devastation.
If you've been seriously injured in a car accident, Beahm Law has the experience to help you recover maximum compensation for your medical bills, lost wages, and pain and suffering.