Auto insurance helps you pay for any injuries and damage that can happen when you are operating a vehicle. It helps cover medical bills, lost wages, and car repairs. In some cases, auto insurance also covers accidents caused by a motorcycle or bicycle. This automobile insurance guide for California drivers will help you make an informed decision when you purchase coverage.
Finding coverage starts with your premium. Your premium is the amount that you pay to the auto insurance company for your policy. It covers the term of the policy. Generally, the length of a policy is 6 months to a year. The average premium for a full year of coverage in California is $1,700 per year. Several variables determine your auto insurance rates, including your age, driving history, marital status, and credit score.
California law requires drivers to maintain auto liability insurance. If you are ruled to be at fault for an accident, auto liability covers the injured party's lost wages, bills, and other damages based on the limit of your policy.
According to state law, liability coverage in California covers $15,000 for the death of a person, $30,000 if multiple people were hurt in the accident, and $5,000 towards any property damage. If you are considered a high-risk driver, you can increase your coverage.
Driving without at least having liability coverage is illegal. Your license may be suspended, and your vehicle could be impounded. If you are involved in a serious accident, you could potentially lose all your savings and assets if you don't have insurance. If you don't have insurance, you will not be able to register your vehicle with the California Department of Motor Vehicles.
According to the California DMV, all drivers are required to have auto insurance or some form of financial responsibility before hitting the road. The state’s minimum car insurance requirements include $15,000 in liability coverage for a single other driver’s injury, $30,000 in coverage per accident, and $5,000 in coverage for property damage. These are often summarized as 15/30/534. You must carry evidence of insurance in your vehicle at all times and it must be provided when requested by law enforcement when you are renewing the vehicle registration, or when the vehicle is involved in a traffic collision.
Collision and Comprehensive Coverage
California policies often offer collision and comprehensive coverage together. Collision coverage protects you by covering any damage to your vehicle caused by hitting another vehicle or an object such as a fence.
Comprehensive coverage is more flexible and covers your vehicle if it's stolen, vandalized, or damaged by a flying object. Comprehensive coverage takes care of your vehicle if it is damaged due to a natural disaster such as a fire, hurricane, or tornado. The amount of coverage you need depends on the vehicle that you have.
Also, keep in mind that you will have to purchase extra coverage if you have an expensive navigation or stereo system in your vehicle. This is the only way to ensure that the items are completely covered if something happens to them.
As you research automobile insurance in California, pay attention to California's Shared Fault Law. The law explains how you may be partially responsible for the damages caused in an accident and still be able to recover benefits. Your insurer can argue that you deserve the lowest percentage of fault. In this scenario, the other driver will be responsible for the rest of the damages.
If you think you need more coverage than the amount currently on your policy, you can purchase a personal umbrella policy. Personal umbrella coverage can fill in the gaps if you are involved in an accident and the other driver suffers potentially fatal injuries. If the other driver's medical bills exceed the limits on your policy, you are responsible for the difference. Without an umbrella insurance policy in place, you could potentially lose everything.
There are multiple custom coverages that you can add to your policy. You can add emergency roadside assistance to cover you if your vehicle suffers engine failure and you need urgent towing service. Perhaps you have a flat tire, or your car battery needs a boost. If your vehicle is seriously damaged in an accident, you can add rental reimbursement coverage. This allows you to drive an alternative vehicle until your car is repaired.
Finding the right auto insurance policy for your needs can be complicated. This automobile insurance guide should make the process a little easier. The experts at CF&P Insurance Brokers can help assess your specific car insurance coverage needs and close any protection gaps. To learn more, don't hesitate to call us at (925) 956-7700 today.
The cost of car insurance per month in California varies depending on various factors such as your age, driving record, type of car, location, and coverage amount. On average, car insurance in California costs around $164 per month.
In California, drivers are required to have liability insurance to cover the cost of any damages or injuries they may cause in an accident. The minimum liability insurance limits are $15,000 for injury/death to one person, $30,000 for injury/death to more than one person, and $5,000 for property damage.
Yes, you can have out-of-state car insurance in California, but you need to make sure that it meets the minimum coverage requirements of California. You may also need to provide proof of insurance to the California DMV.
California does not require full coverage auto insurance, but it is recommended, especially if you have a new or expensive car. Full coverage insurance includes liability, collision, and comprehensive coverage. Liability insurance only covers damages and injuries you cause to others, while collision and comprehensive coverage protect your own vehicle.
