Understanding Auto Insurance requirements in California
Every driver in the state of California on the road must obtain and maintain a minimum level of liability auto insurance when they drive, to protect themselves and other drivers against potential damage. However, most California drivers carry more than the minimum financial requirement.
The three primary areas that you can select auto insurance coverage for include:
Bodily injury coverage- The total financial amount available to cover bodily damage resulting from an accident for any parties within the vehicle.
Bodily injury coverage per accident- The total financial amount available to cover bodily damage per accident.
Total property damage
Three Components of Auto Insurance
When you start looking for auto insurance coverage in California, review the available options within the following categories:
Medical Coverage- In the event of an accident, this auto insurance covers any associated medical costs associated with lost wages, funeral costs, medical care required as a result of the accident or rehabilitation.
Liability Coverage- This coverage pays for the costs associated with other drivers involved in the accident.
Property Coverage- If there is automobile damage which results from the accident, this portion of the auto insurance coverage will cover all or a portion of the costs.
The amount of coverage you select within each of these three areas will determine your monthly or annual premium amount; the more coverage you select, the greater your California auto insurance rate will be.
In addition to the three basic auto insurance options, there are several other additional features which can be added to your policy. Some of these options include:
Uninsured Motorists Coverage- This type of coverage offer financial protection in the event that the other motorist involved in an accident does not have liability coverage. Determine if this option is available in your state if the geographic region has a high percentage of uninsured drivers.
Rental Car Coverage- This added benefit provides capital for a rental car while your vehicle is being repaired after an accident, and typically costs between $5-15 extra per month depending upon the auto insurance company.
Towing Coverage- Following an accident, this auto insurance feature will cover the cost of towing your vehicle.
Consider your financial needs and your desired coverage amounts along with your monthly household budget when determining which features and benefits you add to your auto insurance policy.
What Increases my Premiums?
Some of the factors that affect your auto insurance rate include:
The total annual deductible that you choose
Your age at the time your auto insurance policy is issued
The age of any other drivers you add to your policy- spouse, children
The type of automobile you drive and insure
Whether you add multiple vehicles to your policy or just one
The driving record of any driver added to your auto insurance policy
The personal credit rating of the primary insured party
The basic overhead of the auto insurance company offering the quotes
Before you select your California auto insurance coverage and company, be sure to collect several quotes so that you can ensure that you are gaining the best coverage possible given your personal budget.