Auto Insurance in California is Mandatory
California requires auto insurance. Nearly everywhere in the US, auto insurance is required. The State of California insists that this legal requirement be met. California is a beautiful place, but insurance in California can be quite expensive.
Low Cost Auto Insurance in California
You can find affordable auto insurance in California by using websites such as Quote Wizard and 2Insure4Less. These sites are completely free. Fill out a form with your information, vehicle details and driving history. Three to four quotes will be sent by email.
Minimum Requirements
Before you start looking for California auto insurance, it is worth learning some basic information about insurance.
California law requires three minimum coverages, commonly known as 15/30/15.
The liability for bodily injury per person is $15,000, and the liability per accident for bodily injury per accident is $30,000.
Property damage liability is set at $15,000.
These minimums are not sufficient to cover all expenses that could arise from an accident. The financial consequences for you can be severe if you are found to be at fault in an accident that involves multiple vehicles and parties.
It’s a good idea to spend a little more money and to increase your liability coverage to a reasonable level. I recommend 100/300/100.
Additional Coverage to Consider in California
The official minimums do not include liability coverage. Therefore, you should consider the following coverage options as part of your overall coverage.
- Collision – Covers damage to your vehicle from collision.
- Comprehensive – Insures your vehicle against damage other than collision. Fire, theft, vandalism, and other natural causes.
- Personal Injury Protection – Covers you and your passengers for physical injuries and death.
- Uninsured Motorist: If a motorist causes an accident, this insurance covers the damages to your vehicle and you.
- Gap Insurance – This insurance covers the gap between the loan amount and market value of your vehicle, whether it is leased or financed. It covers the difference between the loan amount of the vehicle and its market value. This is especially important for new vehicles, which can lose several thousand dollars once they are driven off the lot.
Cost Reduction Strategies Auto insurance in California
- Once you have determined your coverage needs, these cost-saving strategies should be taken into consideration.
- Don’t pay for coverage that you don’t need. You may want to cancel collision and comprehensive coverage if the annual premium for collision exceeds your car’s market value.
- Review your deductible amount. A 25% reduction in your collision and comprehensive premiums can be caused by raising your deductible from $100 up to $2,000 It is sensible to set your vehicle’s deductible at the amount that you are willing to pay for damage to your car. Popular are deductibles up to $1,000.
- Every insurance company is very concerned about your driving record. Your premiums can be reduced by 25% if you have a clean driving record for five years. Your record should be clean by now to receive a discount from your insurance company. Consider taking a safe driving course if your driving record is not perfect. Also, resist the temptation to speed or run stop signs. Do not drive after drinking alcohol.
- What is the best place to park your car at night. Your premiums will go up if you live in an area with high crime rates.
Savings News for California Motorists
California Insurance Commission approved policies that allow drivers to purchase insurance per mile by purchasing pay-as you-drive policies.
Pay-as-you drive supporters argue that it is a way for insurance costs to be accurately linked with accident risk and to pass savings on to drivers who are qualified.
This concept also aims to encourage alternative transportation, thereby reducing traffic accidents, relieving congestion, and air pollution. Oh, Momma!
Brookings Institute’s 2008 study concluded that 65% households would save money ($270/vehicle on average) if every driver paid for auto insurance per mile.
Progressive already offers pay-by the-mile policies to 16 states. They will be the first to offer pay-by-the mile in California.
Ask your insurance agent when pay-per mile will be available in California.