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Collision, comprehensive, and liability insurance are three components
of most insurance companies. By law, you must carry liability insurance
but the other two are up to you. California is a tort state. That means
that if you reside in California you are personally financially
responsible for any damage or injuries you may cause as a result of an
accident.
If you are planning to insure your car or truck in California, you need
to be able to prove that you have a minimum of $35,000 in liability
insurance. You can do this by either placing a trust with the DMV or by
purchasing the liability insurance necessary. Truthfully, in today’s
world $35,000 is likely not enough liability insurance and you should
really consider purchasing more than what’s legally required. Because if
not, and something bad happens you could be financially ruined for the
rest of your life. $1 million is the minimum liability coverage
recommended by agents.
Your California car insurance rates are set differently than in many
other states. Here your rates will be determined by the accident rates
and driving behavior of all drivers in California. The cost of your car
insurance will include the accident settlements and any legal fees that
the state has paid out for accidents, and then it is divided by the
number of drivers. To learn more about CA auto insurance laws and
regulations, visit the state's official website of the
California Department of Insurance.
However, it’s not quite that simple because not all drivers pay the same
premiums. If you are a low risk driver, you will pay less. Your risk is
determined using your age, your driving record, the type of car you
drive, and even where you live.
Each California car insurance agent will offer different policies so
make sure not only get several different
on line car insurance quotes but
also that you compare the policy coverages and more importantly the
exclusions so that you know exactly what you are getting. In less than a
half hour, you can have exactly what you need to choose the right
auto insurance in California.
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