Every state has its own unique requirements for car auto Insurance coverage for its drivers. California is no different. It is important to do a little research into car insurance requirements and individual car insurance companies to get the best coverage at the best price. Don’t forget to check out insurance company payout rates when claims are made.
Before asking for shop quotes, check out a few promising car insurance companies online. Do they offer the coverage that is needed? Do they have good customer service practices? What is their satisfaction rate with existing and former customers? What is their history of customer payouts when accident claims are made? Consider contacting an insurance aggregator who will have many insurance companies and policy choices to consider.
In addition, it might be a good idea to choose an insurance company that offers other types of insurance such as homeowner’s insurance, health insurance, business insurance, and more. It may be possible to get better insurance rates when a person purchases all their insurance from one insurance company.
Why Does a Person Need Auto Insurance?
Life has risks, and things like car accidents and car theft can bring huge financial burdens to the auto owner. There are insurance companies that for a price, help a person pay for injuries and damages that happen to their auto, the other person’s auto, and the people involved in an accident. An insurance policy is a legal document with obligations listed for the policy owner and the insurance company issuing it. California requires all drivers to have auto insurance.
It is important to go over any auto insurance policy with the insurance agent. Auto insurance can cover different types of vehicles including cars, trucks, vans, motorcycles, business vehicles, recreational vehicles, and others. Different policies have different coverages and different exclusions. There will be insurance premiums to pay on a regular basis. Auto insurance policies can be canceled for various reasons such as unsafe driving practices or nonpayment of insurance premiums.
California Insurance Laws
The state of California requires every driver to show proof of financial responsibility covering each vehicle they own in case of car accidents causing damage to other cars and injuries to the people involved in the accident. Auto liability insurance is a way to show financial responsibility. California requires proof of this liability insurance to be available at all times. Insurance companies usually provide proof of insurance cards to carry in each vehicle.
If a driver is caught without current auto insurance, they can be fined, their driver’s license can be suspended, or their vehicle can be impounded. Carrying at least liability insurance is a cheap price to pay compared to these consequences.
Auto Insurance in California Facts and Statistics
California auto insurance rates are among the higher rates in the United States with average full coverage policies coming in at around $2,521. Policy costs vary depending on the amount of coverage, exclusions, and other factors. The highest insurance costs are for teenagers and the lowest costs are for senior citizens. Approximately 79% of drivers have both liability and comprehensive coverage. Liability insurance can be purchased alone for far less but the policy will not cover the damages for the policy holder.
Factors that affect auto insurance rates include the driver’s driving record, a person’s credit rating, the vehicle make and model, The driver’s age, where the driver lives, the coverage choices, and other factors.