Car Insurance Requirements For California Drivers

If you are a new car owner in the state of California, or if you just moved to the state, you need to be aware of the car insurance requirements. Auto insurance requirements are different from state to state, and California has some unique demands here. California only requires that you have insurance to protect the medical treatment and property of someone else that you may have an accident with. We want to take a brief look at what levels of insurance are required for your vehicle so you can be legally insured.

By law in California a legal driver must have bodily injury coverage of at least fifteen thousand dollars per person that is inured, and at least thirty thousand dollars for all the people injured in an accident. This coverage is commonly referred to as fifteen thirty BI. This may seem like a lot of money to cover injuries, but once you think about the rising costs of medical treatment these days you may want to increase it to fifty thousand and one hundred thousand for bodily injury.

A legal driver in California must also have a minimum coverage of at least five thousand dollars of property damage. This will give you coverage to the other person car if you damage it. You really should consider upping this coverage to thirty or even fifty thousand dollars once you consider the prices of cars these days.

Aside from these two required coverages, your auto loan may require than you also carry collision and comprehensive coverage for your own vehicles. The collision coverage will make sure the costs of repairing or replacing your vehicle are covered in case your car it damaged. The ultimate cost will depend on the type of car you own and its age. Your auto lender may also demand that you purchase comprehensive coverage which covers you for things such as weather damage or damage is should run into an animal. Basically it covers any type of damage that is not incurred due to a collision with another vehicle. Comp is usually not very much and it gives you coverage for theft as well, including any personal property inside the vehicle. The cost for both of these coverages will also depend on the amount of the deductible that you choose.

Some other coverages you will want to consider are uninsured motorist coverage and under insured motorist coverage. With the weak economy and job market today many people are choosing to drive illegally without auto insurance. With the uninsured motorist coverage you will be covered for both bodily injury and property damage if you have an accident with another person who is not insured. Even though they may be at fault and owe you to cover medical and car repair bills, they will not be able to pay you if they are not insured. The uninsured motorist coverage protects you in these cases.

The under insured motorist coverage works much in the same way. If you have an accident with someone and they do not have enough insurance coverage to pay for your medical bills or repair bills then this coverage will kick in and pay. Again, considering how many people are trying to cut household expenses this type of insurance makes sense if you can afford it. The amount of your under insured coverage must match the amount you have for the uninsured coverage.

Cheap Car Insurance – Why Choosing the Right Insurance Company Matters

When buying car or auto insurance most people have what probably could be termed a bottom-line approach. They will have an idea of the type of cover they want, and they will shop around normally to obtain the cheapest quote they can, and that will be pretty much all they worry about.

This in part is because no matter where you live some type of car insurance is probably compulsory, and people’s attitude to an extent would be to obtain what is necessary because of the legal requirements, and not worry too much about anything else.

The issue of the solvency or not of any insurance company is something that probably does not raise any concerns from most individual policyholders. This is understandable, but is nevertheless an important issue that should be considered by people.

There is a tendency to assume that most insurance companies will always exist for a long time, are solvent, and can be relied upon to meet any claim that might be due.

The solvency or not of an insurance company is not necessarily the main issue, although it is an important one. The insurance claims that really matter to people are the long-term liability claims, where a motorist or driver will have a significant amount of financial damages awarded against them or agreed in an out-of-court settlement, which the company will effectively cover for the policyholder.

This is an important consideration, simply because most liability claims take a long time to settle, and you want to make sure that the insurance company is still around when the final settlement was agreed.

There may be some provision in statute to provide some compensation if the insurance company goes bust meantime, but this may well be restricted to whatever the local state or federal minimum legal insurance requirement is.

If your insurance company is not able to meet its commitments to you as a policyholder, you are still liable for any damages that are due from you. As such the solvency of an insurance company is important and something that should be considered by potential policyholders.

The other issue that affects the choice of an insurance company at a more practical level is its approach to claims management, both at a personal level and at a financial level. This is more than simply about whether it pays claims quickly or efficiently or not.

Car insurance can be slightly different to other types of insurance in that claims will often be for partial repair or damage as opposed to a total loss of whatever the insured item is. This means in practice that insurers can use their own vehicle repair shops, and their own claims management systems to ensure a speedy or not repair service.

The difficulty often is in finding out actually how effective an insurer is in dealing with a claim both fairly and quickly. In one sense it to be easy to find out nowadays given the nature of the internet and how willing people are to post examples of good or bad service.

In reality, rather like customer reviews of products bought online, people tend to take to a website to have a good moan about a company or express their dissatisfaction with it some reason.

This may be a perfectly valid complaint but inevitably will be one-sided. It is unlikely that insurance companies or even people who experience a good level of service with an insurance company will take to a website to recommend their car insurance.

This means simply that other ways have to be found of checking out how an insurance company deals with claims and there are a number of ways of doing this.

How To Easily Get Low Cost Car Insurance

If you are a busy person, and you have a busy schedule that you must adhere to every single day, you are likely not very interested in the idea of spending countless hours tracking down the cheapest insurance products you can buy today. If you would like to make the process of finding a low cost car insurance product easy to manage, then you should use the following tips.

Tip 1- Find out what the legal insurance minimums are in your area. Most states mandate that all drivers have a specific amount of coverage in order for them to be legally on the road. By uncovering the minimum amount of protection you need to drive your vehicle legally, you can easily cut down on the cost of your coverage.

Policies are often much more affordable when they do not come with a substantial amount of coverage. As you decrease the amount of coverage your policy comes with, you effectively reduce the amount of risk your provider faces by insuring you and you decrease the cost of your policy.

Tip 2- Reduce the size of your policy’s deductible. The deductible that is attached to your policy can also adversely affect the price of your coverage too, because a small deductible means the provider you are using faces more risk by insuring you. If you simply increase the size of your policy’s deductible as much as you can, you take away a substantial amount of that risk and you effectively decrease the cost of your coverage.

Tip 3- Look for special discounts. While some of the special discounts providers offer to their customers might seem insignificant, when they are all combined together, they can easily add up to a hefty amount of money. By qualifying for multiple discounts when you purchase your policy, you will likely obtain one of the cheapest insurance policies available in the industry today.

Tip 4- Buy a safe or a cheap car. Safe and cheap cars are often very affordable to insure, because the insurance companies face less risk by insuring drivers who are behind the wheels of these vehicles. A fast high quality sports car obviously comes with much more risk than a low quality, but safe vehicle. For this reason, you might be able to reduce the cost of your insurance coverage by as much as a few hundred dollars a year just by changing the vehicle you drive. If you combine this tip with the rest of the tips too, you will certainly get low cost car insurance as a result.