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California auto insurance
The state of California has some of the most simplistic
auto insurance regulations in the USA, which is good news for those looking
to take out auto insurance, as the premiums are generally inexpensive,
especially when compared to states such as New Jersey, which have more
stringent requirements.
Residents of California are financially responsible for any injury or
damage that occurs as the result of an automotive accident in which they
are at fault, state law requires that drivers have proof that they can
meet the minimum values imposed. There are two ways in which Californian
residents can obtain this proof: by putting up their own assets, or by
obtaining auto insurance.
The first of these methods requires the deposit of either a bond or cash
deposit to be made to the DMV to the sum of $35,000. This amount is to
cover the minimum cover levels imposed by the state, these are $15,000
per person for injuries caused, $30,000 for the total claim amount and
$5,000 for damage caused to property. These figures are more commonly
quoted in the form 15/30/5. By taking this route you will be putting your
own assets at risk should you be involved in an accident, and although
you will be meeting the legal requirements of the state, the cover afforded
to you is minimal and when considering the risk of loosing your own money,
taking out auto insurance looks to be the better option.
California auto insurance companies will offer policies that will cover
you for the previously stated minimum amounts, with this approach not
only will you be meeting the legal state requirements, but will not be
putting your own assets at risk. Insurance companies offer a wide range
of programs on top of these minimal policies, and if you have large assets
to protect, you should definitely consider taking a policy that covers
you to higher monetary amounts – the insurance company will be able
to advise you on which policies would be suitable for your situation.
Another benefit of taking out an auto insurance policy over putting up
a bond with the DMV is the additional services and benefits offered by
the insurance companies. Many of the companies will offer additional coverage
for things such as medical costs to yourself should you require treatment
following an accident, making up the deficit of your claim in the event
of being crashed into by an uninsured or underinsured driver, and comprehensive
policies to cover you in every eventuality.
The rates that you pay for your insurance cover will be calculated by
the insurance company based on your driving record, your age, the car
you drive and the statistics of the claims made by the rest of the drivers
in the state California. The way that Californian auto insurance companies
carry out these calculations varies, and therefore so do the results –
shop around to find the best deal you can.
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