How many times each week do you get in your car? Twenty? Thirty? Or maybe you're driving to work and to run errands, and you're shuttling your kids from activity to activity. Forty times? Fifty? With gas costs rising, you're probably paying more attention to your driving habits. But how long has it been since you thought about your car insurance?
Every state in the United States requires that licensed drivers carry auto insurance, and California is no difference. California auto insurance laws are similar to laws in other states. The minimum level of auto insurance in CA is called "liability insurance."
There are statutory minimum requirements for California auto liability insurance. This requires at least $15,000 minimum coverage for bodily injury for one person in one accident. Additionally, coverage must insure for bodily injuries of every person in one accident up to $30,000. There are also requirements for insuring property damage: $5,000 for any single accident. You may choose to insure for higher amounts, but these are the minimums that are legally required.
All drivers are required to possess proof of adequate insurance coverage at all times. This requirement increases safety for you, your family, and other drivers. If the unfortunate incident of an accident should occur, this requirement helps to ensure that all parties involved have the necessary information to efficiently resolve the situation.
Failing to carry proof of auto insurance in CA can result in dramatic consequences. If you do not have proof of California auto insurance, you can't legally obtain or renew a vehicle registration. Similarly, if you do not carry proof of insurance, your registration can be suspended - sometimes indefinitely - until you provide proof of insurance. This means that you will not be legally able to drive. Moreover, proof of insurance matters even outside the DMV. If you are stopped by a police officer for any traffic violation, you are legally required to display that proof.
You know now how important it is to have auto insurance in CA. Minimum liability coverage might sound like a lot of money, but many insurance companies currently offer minimum coverage at affordable rates. If you do a little bit of research, you can get insured for a reasonable price - and if you have a good driving record, that price will go down. Ultimately, it's much safer, and much cheaper, to abide by the law and get car insurance. If you get in an accident, you'll save money, and if you drive safely, you'll be a law-abiding citizen.
There seems to be a lot of stories circulating all over the place about car insurance. It's high time that you will be able to know the truth. First, it will help you judge if you truly need car insurance and what type of policy you should look for. It will also remove the stigma that's commonly associated with auto insurance.
Common Myths
1. The one who has caused the accident should bear the responsibility.
It's not wrong to be a very gracious or even a generous car owner. In fact, it surely is so nice of you if you will allow your friend or family member to borrow your car for some reasons. However, you have to keep in mind that if he meets an accident and there are damages to your car, he's not the one who's going to pay for it but you. After all, it's not his name that's being reflected in the records of the insurance companies but yours. You can perhaps strike a deal with your friend or family member. Surely, they'll be considerate of your financial position.
2. The rate of your insurance is dependent on that of the government.
The fall and rise of interest rates of your mortgages and even your car loan may rely on what's happening with the economy of your country, but it doesn't affect your car insurance rate. This is being defined by the car insurance company itself, though you may find that rates have become almost similar. You can attribute this to competition. They can't afford to go very high, or they will lose their clients. On the other hand, they cannot be that low that they will be monopolizing the industry.
3. You only need a collision insurance to fully cover your car.
Cars are very prone to accidents and getting damaged by objects - that's a fact. What car owners don't know, however, is the truth that if you only avail of collision insurance, you won't be getting anything if your car had been destroyed by fire or hail, was stolen, or even vandalized by some punk or gangster out there. If you want complete coverage, go for comprehensive and collision insurance policies. Of course, they can cost more than collision insurance alone, but it's so much better than having to pay for the damages yourself and even the maintenance and repair.
4. The color of your car can influence the rate of your car insurance.
If government doesn't have any power over your car insurance rate, what then? There are actually many. First of all, you have your credit score. Just like when you're applying for a loan in a bank, your credit report will determine what will be your interest rate for your car insurance. Other factors also include the specifications or your car such as the size of the engine, model, and body type. Most of all, if you're a reckless driver, you are going to pay high premiums as you will likely have the most number of accidents than other car owners.
Both Daniel Wright & Mark Robinson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Daniel Wright has sinced written about articles on various topics from Interest, Acne Treatment and Auto Insurance. Compare multiple quotes online with one easy form at Affordable-Auto-Insurance-Quotes.com. It takes only about 4-minutes to complete our. Daniel Wright's top article generates over 673000 views. to your Favourites.
Mark Robinson has sinced written about articles on various topics from Auto Insurance, Insurance Brokers and Auto Insurance. Mark Robinson writes for Auto-Insurance.GuideFin.com. Visit his website for information about .. Mark Robinson's top article generates over 165000 views. to your Favourites.