2011-02-22 by admin
California car insurance requirements dictate that owners of motor vehicles should have insurance coverage that covers bodily and property damage that may result from an accident. There are minimums, which are supposed to be deposited by these vehicle owners, to compensate the victims. If the accident has involved one person, the liability owed is $15,000. If there was more than one person involved in the accident, the driver will have to meet a total cost of $30,000 regardless of the people involved in the accident. There is also an additional $5,000 required to meet the compensation costs. This is the minimum amount required to compensate for property destruction or injury that may occur per accident.
California also has optional car insurance that features uninsured motorist coverage. California law requirements demand that people who opt to use this alternative should still purchase a policy that covers at least the minimum amount required in case of an accident. In case the drivers have purchased a bodily injury policy that is over estimated, they are then allowed to buy underinsured policies at lower costs. The laws of California do not require insurance companies to give the uninsured motorists policies that are worth more than $30,000 per personal injury. The maximum amount that is allowed for many people involved in an accident is $60,000 per accident.
When motorists have purchased uninsured insurance policies, California law requires the clients to purchase underinsurance policy as well. The underinsurance that is purchased is supposed to be equal in amount to the uninsured policy purchased. However, motorists are allowed to let the underinsured insurance policy be more than the uninsured policy they have already purchased if the motorist wishes to do this.
California requires 12/30/5 limits. These limits translate to $20,000 for body injuries sustained per person. An additional $30,000 is required to meet the cost of body injuries sustained per injury. This amount is the one that is used for compensating the victim’s medical bills and lost income. The digit 5 represents $5,000 for property destruction or injury caused upon it in every accident. This amount is used for repairing the items destroyed during the accident.
TagsTags: auto insurance, car insurance tips, insurance laws
Posted in Auto Insurance
2011-02-11 by admin
As far as used car insurance is concerned, shopping coverage before you shop for a car is always the best policy. This is due to the fact that insuring a used car follows the same basic guidelines as a new one. This means that the owner’s goal is to protect himself from liability, in the event that something happens to his vehicle, its occupants, or to other motorists. The key difference, however, is that if a used car is damaged, stolen, or written off as a total loss, the insurer’s potential loss is definitely lower than that of a new model, and therefore, the company can charge less for the comprehensive and collision coverage. This, in turn, lowers the premium.
On the other hand, a used car can inflict just as much damage on other cars, people, structures, and so on, as a new one, so liability rates are not affected by the age of the vehicle.
Bearing in mind the fact that used cars are less valuable, buyers may also want to rethink some of their insurance strategies. As an example, it may not be necessary to maintain high coverage for comprehensive and collision insurance if an ample coverage with lower payouts is readily available for a smaller premium.
With this same logic, it is possible to conclude that a low deductible may make sense on an expensive brand. Therefore, used car buyers may choose to save money by raising their deductibles. Due to the fact that the vehicle may already have some cosmetic wear and tear, the owner might choose to skip repairing minor collision damage, rather than paying the higher premiums or having lower deductibles. It is important to remember, however, that the higher the deductible, the more you will have to pay out of your own pocket in the event of a claim.
When buying comprehensive and collision coverage, the question you should ask yourself is, ‘How much can I afford tomorrow without upsetting my financial comfort zone?’ This is because if you can pay $1,000, why pay extra for a lower deductible? Installing security devices on the car also lowers the premium as it is less likely to be stolen or vandalized.
TagsTags: auto insurance, car insurance, car insurance tips, used car insurance
Posted in Auto Insurance
2011-02-01 by admin
Many people are paying too much for their car insurance even at this juncture. The good news is that you could get a significantly better deal than what you are paying for now through another insurance company.
This article explains the several types of discounts that will help you save on auto insurance. Knowing the types of discounts is very important because it will help you choose the package that comes with benefits.
The following are the types of discounts that you could qualify for.
Low-Risk Occupations
Insurance is basically a game of numbers where auditors gather information regarding the category of people that get into accidents. They are able to discern a certain pattern. Drivers who work as engineers, for example, tend to get involved in fewer accidents. The point is some occupations will be charged less. If you are an engineer, you must be aware of this fact. But the discounts are not only for engineers, there could be another one for teachers or nurses. You may not know unless you ask.
Auto clubs and professional organizations
When you are affiliated with AAA, as well as other professional organizations, you will have lower rates. Do check with your employer to determine if there are any group insurance rates.
Combined and renewal accounts
This means insuring your vehicle with the same company with which you insure home or recreational equipment. Make sure to inquire if that coverage is currently available from your insurer.
Discounts for auto safety
If your car has auto safety features, you will also be entitled to lower rates. These features include antilock brakes. Some states in the US encourage people to buy antilock brakes to help reduce instances of accidents. Therefore, having such a feature has double advantages.
Assume More Risk
To bring your coverage down, assume a higher risk. This can be done by dropping your collision insurance on an older car. For a car worth $1,500, you may realize that the cost of insuring it is more than the cost of the car. It is, therefore, also important to find out if they offer towing services in the event of an accident under your coverage.
TagsTags: auto insurance, car insurance, car insurance tips
Posted in Auto Insurance
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