Auto Insurance is Mandatory in California

Auto insurance in California is mandatory. Almost everywhere in the US, if you possess and use a vehicle, the law requires of you to have auto insurance and the State of California also insists on this legal provision. California is a captivating place but insurance in California is one of the most expensive in the US.

Shopping for Low Cost Auto Insurance in California

The process of finding reasonably priced auto insurance in California can be started through websites like Quote Wizard or 2Insure4Less that come to you absolutely free. You complete a form with information about you, your vehicle and your driving history and 3-4 quotes will be sent to you by email.

Minimum Requirements

Some basic information on insurance is worthwhile before you look for auto insurance in California.

California law insists on three minimum coverages conveniently known as 15/30/15.

For bodily injury the liability per individual is $15,000 and bodily injury liability per accident is $30,000.

The property damage liability is fixed at $15,000.

Indeed these minimums do not adequately cover the expenses that can occur in an accident. If it is established that you are at fault in a serious accident involving multiple parties and vehicles, the financial implications to you can be catastrophic.

It is advisable to spend a few more dollars and increase your liability coverage to reasonable levels. I recommend not less than 100/300/100.

Other Coverage to Consider in California

Since the official minimums take into account only liability coverage, the following coverage options should be considered as part of your overall protection.

  • Collision – Covers damages from collision to your car.
  • Comprehensive – Covers the damages to your car due to reasons other than collision (i.e. fire, theft, vandalism and natural causes).
  • Personal Injury Protection – Covers physical damages and death for you and your passengers.
  • Uninsured Motorist – In the event the accident is caused by a motorist with no insurance, this insurance takes care of damages to you and your vehicle.
  • Gap Insurance – Fulfills the bank’s requirement, if your car is leased or financed. It covers the gap between the loan amount and market value of the vehicle. This is particularly important for new vehicles which can depreciate several thousand dollars the moment you drive them off the lot.

Cost Reduction Strategies for Auto Insurance in California

  1. After you have ascertained your coverage requirements, the following cost reduction strategies should be considered.
  2. Do not pay for coverage you do not need. If the annual premium for collision and comprehensive exceeds the market value of your car, you may be well advised to drop the collision and comprehensive portions.
  3. Review your deductible amount. Raising your deductible from $100 to $2,000 can result in a 25% slash on your collision and comprehensive premiums. It is sensible to set your deductible at the amount you are prepared to pay out of your pocket for damages to your car. Deductibles of $1,000 are becoming popular.
  4. Your driving track record is super important to every insurance company. A 5-year clean record can reduce your premiums by 25%. If your record is clean now, make sure you are getting a discount from your carrier. If your record is less than prime, consider taking a course on safe driving…and resist the urge to speed and run stop signs. Above all, do not drive after consuming alcohol.
  5. Where do you park your car at night? Living in a high crime area will increase premiums for your comprehensive coverage.

Savings News for California Motorists

The California Insurance Commission has approved pay-as-you-drive policies that would allow motorists to buy insurance by the mile.

Supporters say pay-as-you-drive is a way to accurately link insurance cost with accident risk & to pass on savings to worthy drivers.

The concept is also intended to provide incentive to use alternative forms transportation and thereby decrease traffic accidents and relieve air pollution and traffic congestion…and, Momma, how we could use some of that in California!

A 2008 study by the Brookings Institute concluded that 65% of all households would save money ($270 per vehicle on average) if all drivers paid for auto insurance by the mile.

The Progressive company already offers pay-by-the-mile policies in 16 states. Will they be first in California?

Ask your insurance provider when their version of pay-per-mile will be available in California.

Joe Goodman is the creator of Car Insurance Performance.com, an info-rich website that discusses how to find auto insurance that is right for you & your car…at the fairest possible price.For more detailed info on buying insurance in California, visit us on the web=> Low Cost Auto Insurance California

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