California has one of the best programs in the nation for low cost automobile insurance programs that ensures every driver has the opportunity to obtain car insurance. At www.insurance.ca.gov the details of the California program can be found as well as a listing of insurance companies allowing you to obtain side by side insurance quotes.
There are actually four different ways to accomplish financial responsibility in California, unlike most states. They are having the minimum coverage listed below with a liability insurance policy, leave a cash deposit of $35,000 with the DMV, have a certificate of self-insurance for a fleet of 25 or more vehicles, or have surety bond for $35,000. Most will opt for the insurance policy coverage.
The California law requires the following amounts of liability coverage that you must maintain when using option one
* $15,000 per person for bodily injury
* $30,000 per accident for bodily injury
* $5,000 per accident for property
Automobile liability amounts can be confusing. Many times you will see these numbers as 15/30/5, what does that really mean to you the insured?
The first number (15) is what the insurance company will pay out for each person that is injured in an accident if you are held legally at fault for the accident. The second number (30) is what the total injury payout by your insurance company per accident. The third number (5) is what the insurance company will pay out per accident for any property damage. It is important to remember that the first and second numbers are tied together. If, for example, you were in an accident and were at fault for that accident and the accident involved 5 people and 4 were seriously injured incurring serious medical costs, a claims battle may happen between you and the other parties. If the medical bills are over $30,000, you as the at fault driver can be sued for the remainder of the costs in court.
The next type of insurance that you will see on a quote that is required by law in California under option one is uninsured motorist coverage. This is fairly straigtforward in understanding. Some states do not require motorists to carry the same insurance as California does, if you are involved in an accident and the other motorist is not insured properly, this covers the gap whether you are at fault or not.
Personal Injury Protection, sometimes referred to as PIP, is the type of insurance that most no-fault states have. In California, this is not required insurance under option one. The purpose of this insurance is the added security in case that you are in an accident and become injured and are unable to work, this type of coverage will cover the gap in employment wages. The cost of this type of insurance is reality low and you may wish to consider carrying the maximum.
There are other types of insurance that you can purchase and may be required by your lein holder on a new vehicle. Collision is insurance that will cover you when your auto has any type of damage or collision. This includes other objects besides autos, as an example a tree falling on your car.
Comprehensive insurance is the insurance that covers the loss of the vehicle or its contents. It will pay for theft loss, vandalism, and natural disasters. The cost may be worth it to be covered if your car is parked in places that it may be susceptible to theft or vandalism. If you have security devices on your car, the cost of this insurance is drastically reduced.