For a country that has more automobiles than people, auto insurance is a significant factor that keeps you and your vehicle protected against financial loss due to mishaps. Auto insurance companies in California, for the past 40 years, have been offering competitive quotes for insuring cars. Most companies offer packages that include a good balance of cost and quality, in tune with the mandatory policies of the state with regard to insurance coverage.
What do auto insurance companies do?
Auto insurance companies help protect you, your family and your car and compensate monetary loss in the face of an accident. They sign a contract with you according to which you pay a premium, based on which they agree to compensate you for the losses suffered in accident.
Auto insurance companies in California, in general, offer six types of insurance coverage.
1. Bodily Injury Liability: Compensation given for the insurer’s legal obligations in the event bodily harm to a third party This policy helps you pay drivers of another car if he is hurt in the accident. This is beneficial because it prevents the driver being sued for the same.
2. Property Damage Liability: In the case of an accident involving you car and another’s car, this policy will help you pay for the other person’s damages. The policy holder will however have to pay from his pocket to compensate damages of his car.
3. PIP: Personal Injury Protection helps pay for the insurer and his co-passengers in the case of an accident. This policy covers treatment, rehabilitation, pay compensation and funeral expenditure.
4. Uninsured and Underinsured Motorist Coverage is special policy that helps pay for the damages occurring if an uninsured vehicle causes an accident to it. In the case of hit and run accidents too, the insurer will be adequately protected.
5. The Collision Insurance Policy: This is a popular and one of the most affordable policies of auto insurance. This policy covers damages to your car if another car causes an accident to your vehicle. This policy requires a modest amount as a deductible. After this payment is complete, the auto insurance company will handle the rest of the payment.
6. Comprehensive coverage: This helps insure the car against a wide variety of parameters including stolen cars, damage, fire accidents, disasters and collisions.
Auto insurance companies offer several other coverage options. Most premiums are for six-month or one-year duration. The US Government instructs auto insurance companies to inform policy holders, by mail, about when you should renew the policy and pay premium.
California Law sets the following minimum auto insurance coverage.
1. Liability Bodily Injury - $15000 – per person coverage
2. Liability Bodily Injury - $30000 – per accident coverage
3. Property Damage Coverage - $5000 – Other cars and other types of property
Auto insurance companies will provide you with coverage even if you do not
· Possess a California driver’s license
· Have the vehicle registered in your name
California State’s newly adopted program called California Low Cost Automobile Program has triggered a rapidly growing trend among California auto insurance companies to provide more flexible and customer friendly policies.
It is important you have a good record of driving with preferably no accidents for auto insurance companies provide the best coverage. California auto insurance companies provide more discounts to good drivers with proven records. A good car driver avail a discount up to 20% as compared to an average driver!
The California auto insurance companies also follow certain guidelines to cancel auto insurance policies. Policies are cancelled for those drivers whose fraudulent information come to light and for those who do not pay premiums regularly.