California Law requires all motor vehicle owners to have insurance which provides Bodily Injury Coverage and Property Damage Coverage.
In the State of California the required minimum coverage for bodily injury is $15,000 per person injured in any one accident and $30,000 for all persons injured in any one accident.
The required minimum coverage for property damage is $5,000 for injury to or the destruction of property of others in any one accident.
Optional insurance may include Uninsured Motorist Coverage. If the policy holder makes this choice, the actual coverage purchased must be at least the amount of the required Bodily Injury Coverage. If the policy holder purchases more than the required amount of Bodily Injury Coverage, Underinsured Motorist Coverage may then be purchased in a lesser amount. The State of California does not require insurance companies to provide Uninsured Motorist Coverage in any amount greater than $30,000 per personal injury in any one accident and $60,000 for all persons involved in any one accident.
As well, if Uninsured Motorist Coverage is purchased, then the policy must also include Underinsured Motorist Coverage. California requires insurance companies to offer for purchase Underinsured Motorist Coverage in an amount equal to that purchased for Uninsured Motorist Coverage. Insurers may, however, offer a greater amount of Underinsured Motorist Coverage than the Uninsured Motorist Coverage actually purchased by the policy holder.
California requires liability limits of 12/30/5 which represent $20,000 for bodily injury coverage per person and $30,000 for bodily injury coverage per accident which will pay for medical bills and lost wages. The last number of 5 represents $5,000 for property damage coverage per accident which will pay for repairs and/or replacement of objects damaged or destroyed other than the policy holder’s own vehicle.
Personal Injury Protection (PIP) and No-Fault Coverage are not required by the state.
Adding Collision Coverage as well as Comprehensive Coverage to an insurance policy is optional as well in California.
By: Elizabeth Newberry
The tough economic situation is making many Americans rethink how they spend their hard-earned money. For instance, a growing number of car owners are now becoming increasingly aware of how insurance companies work. Policyholders are also becoming less brand-sensitive and more open to new insurance providers.
Car insurance specialists agree that expensive auto insurance fares no better than budget car insurance. In fact, when additional options are stripped down, they are all the same. High-end insurance and affordable ones are all similar in terms of minimum coverage amounts. Most states require a minimum amount to cover bodily injuries or death, property damage, and liability. Insurance providers usually peg their minimum amounts to state requirements.
In reality, budget car insurance works as good as expensive insurance. In some instances, cheaper insurance can save car owners more money than high-end ones. Most car accidents are minor fender benders that require no hospitalization and minimal repairs. This means that policyholders do not have to shell out any money because the projected costs will fall way below of their minimum coverage amount. For car owners who pay thousands of dollars for unused insurance privileges, this can mean tremendous disadvantage. Policyholders who pay for a fraction of their yearly insurance expenses clearly have the upper hand in this scenario.
Most budget car insurance providers also offer specific services that allow customers to have a sense of security and protection, minus the added cost. Insurers also provide temporary insurance policies for car owners on a tight budget. This short term coverage gives policyholders the freedom to use their cars as they wish without having to pay for an entire year’s worth of insurance protection.
Insurance providers are capable of offering low-cost insurance policies by making use of several modifications to their coverage. For example, budget car insurance providers typically cover the individual listed in the policy. This eliminates the need to factor in other drivers, keeping premiums well below the usual rates. Car owners have to take this into consideration when purchasing low-cost auto insurance. Policyholders, however, can choose to purchase additional coverage if other family members will be using an insured vehicle. Even with other drivers listed in the policy, the insurance costs will be significantly lower compared to high-end insurance policies.
Another great thing about low-cost insurance is their availability online. Most budget auto insurance providers offer their services through the internet, keeping overhead expenses at a minimum. Because of this, they can offer more affordable insurance.
By: Jessica Cronin
Different companies will apply different factors to the way they finally arrive at a price for your Car Insurance. Generally speaking though the concept is the same. This involves collecting various bits of information from you and feeding it through a computer system which adds or takes away money depending on the answers you give.
The value put on these answers is decided by the individual Car Insurance company.
For example, some Car Insurance companies may believe that having a speeding conviction increases your chance of having a personal injury accident in the future – therefore they may add money to your price if you have such a conviction.
Similarly, some Car Insurance companies may decide that because you have a lot of No Claims Bonus Years then you are less likely to claim – therefore they may discount your price. All in all there are around 30 different factors that may affect your final premium. Now you can see why you get such a difference in the price of your Car Insurance by going to various companies. Each company will have it’s own view of what they believe should be assigned to each answer you give. The Car Insurance quote you get through the Accept Direct website will look at lots of different Car Insurance prices from lots of companies.
That way you can get the best possible price for your profile.
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By: Andrew Bowen