California State Auto Insurance? Why do I need it?
California State Auto Insurance – Free Advice from an Insurance Professional
As a resident of California, it is required that you have vehicle insurance. Drivers that are uninsured will face heavy penalties such as fines, having their license suspended and vehicle impounded. If you are driving in California uninsured, stop immediately. Getting caught will haunt you for years.
The minimum liability coverage according to California state auto insurance law is low and by no means are these figures sufficient…a prudent person will carry coverage well in excess of these limits.
Currently, California state auto insurance regs necessitate all registered vehicle owners to hold at least 15/30/15 liability cover. That means:
$15,000 will be paid out per individual
$30,000 will be paid for all parties per accident
$15,000 will be paid for total property damage
Vehicles valued at $50,000 or more are common these days…especially in California. The reimbursement cost of a broken arm can go upwards of $25,000 when hospitalization, surgery and rehab are considered. So, it’s plain to see that a serious accident involving several vehicles will easily exceed the CA minimums.
I recommend no less than 100/300/100 and significantly more if you can afford it. It won’t increase your premiums substantially and could save you from financial ruin.
We’ve talked about liability coverage so far…that takes care of the other parties if you are at fault. Don’t forget about you and your vehicle.
You, first.
Personal Injury Protection (PIP) will take care of your medical bills related to an auto accident. Consider PIP in conjunction with any separate medical and accident coverage that you may already have…no need to pay for duplicate coverage.
Your car next.
When you hear the term “full coverage”, it usually means car insurance that includes collision and comprehensive coverage. Collision insurance pays for damages to your car less a predetermined deductible amount. Comprehensive takes care of damages to your car that are unrelated to an accident. These include fire, theft, vandalism and damage caused by act of nature or animal impact.
And I certainly wouldn’t forget coverage for uninsured motorists. It’s not your fault, but he can’t pay…this coverage could save your bacon. And will only cost a few bucks to add it to your policy.
California has some of the highest auto insurance rates in the country and you will be surprised how significantly rates differ from company to company. So the moral of the story is “shop around”…and the easiest way is to use an online comparison shopping service like Quote Wizard or 2Insure4Less.
You complete an online form and they will send you 3-4 quotes from reputable insurance companies. Compare those to your present policy and make a few phone calls to get your questions answered. Then decide which coverage and insurer if best for you and your family.
Be sure to protect yourself and your family from financial disaster by carrying the proper amount of insurance on your vehicles. Otherwise, take the bus.
