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Ron Trumbo
Car Insurance Editor |
As you shop for cheap auto insurance in California, be aware that being a “good driver” in California is not simply passé marketing spin, but rather a provision of California’s Proposition 103. Passed into law over 20 years ago, Prop 103 achieves many good things for Californians — especially good drivers.
Specific driving violations
may be considered for periods of 10 years such
as a DUI in California. Accordingly, every car insurance
company in California must offer coverage
for Good Drivers and aren't allowed to refuse coverage if you qualify as a Good Driver. Most importantly: it's important to note that your rates as
a Good Driver must be at least 20% lower than
a non-Good Driver’s rates would be at
the same insurance company.
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Ron Trumbo
Car Insurance Editor |
As you shop for car insurance in California, it’s important that you have enough insurance coverage to protect your short and long-term finances. California requires a minimum liability bodily injury and property damage, but there are few types of auto insurance coverage options that are not required by California law. From uninsured motorist property damage, comprehensive and collision coverage, rental reimbursement, to towing coverage, just because they’re not required, doesn’t mean that you don’t need them.
California is a state with a lot of regulations — and taxes for that matter! Many of these regulations are intended to protect California consumers from insurance companies. Specifically, Proposition 103, passed back in 1988 tells California insurance companies exactly what factors they can use to determine your car insurance rates. From your driving record, your annual mileage, to length of time you've been driving, here's what you need to know about how California insurance companies determine rates and how you can find a cheaper policy.
Earthquakes are a reality of living in California, and damage to homes is not simply something you see on TV— it’s real! The California Earthquake Authority indicates that California is likely to have a 6.7 or larger magnitude earthquake within the next 30 years.
In California, driving without insurance is a
serious offense. Failure to show proof of insurance
when requested may result in fines or a suspended
license. California is firm about driving being
a privilege. If you are stopped by a police
officer and asked for proof of insurance and
you can’t produce it, you may receive a
citation. To reverse the fine, you'll probably
have showing proof of insurance in court.
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California knows how to stick it to the thousands of drivers who drink and drive in the Golden State every year. In addition to having your license suspended for at least 4 months, in California, a DUI will remain on your driving record for 10 years! InsuranceLoco helps California’s risky drivers understand DUI insurance, SR 22 certificates, and finding affordable coverage.
The only way to find the lowest priced auto insurance policy in California is to compare at least 5 different insurance rates from different local insurance agents. When you’re having conversations with California insurance agents, make sure you ask a few of these questions. What kind of auto insurance discounts are available to you in California? What are the payment plans on your auto insurance policy? Are any up front fees that are separate for the insurance policy? Does your California insurance policy allow you to drive to Mexico or Canada?
California's Minimum Insurance Requirements May Not Be Enough Coverage
Too many Californian's have substantial holes in their car insurance policy. Specifically, they do not have enough car insurance coverage to protect them if they are involved in an accident that would result in injury of another person. This is because price only shoppers are choosing the absolute lowest coverage. California law requires that you have liability of 15/30/5, which translates as: $15,000 for injury/death to one person; $30,000 for injury/death to more than one person; and $5,000 for damage to property. InsuranceLoco recommends that you speak with several insurance agents and compare insurance rates for different coverage amounts. Most consumers will be surprise how affordable auto coverage can be if you simply shop around.
California's Low Cost Auto Insurance
Program for Drivers Who Simply Can't Find Coverage
As you'll will see at the California Insurance Department website, Californians are now able to purchase low cost, reduced limit, auto liability coverage. The California Low Cost Automobile Insurance Program (CLCAIP) is a pilot program which will satisfy the financial responsibility laws of the State of California. These policies are available to qualified persons residing in the counties of Los Angeles and San Francisco. Briefly, the qualifications are based primarily upon: Household Income, Driving Record (accidents and violations), and Vehicle Purchased Value.
Common Exclusions in California Homeowners Insurance Policies
The California Department of Insurance strongly recommends that you read the exclusions in your home insurance contract. Earthquake, flood, mold, earth movement, and "wear and tear" are some of the perils that are usually excluded. When a home insurance company underwrites your homeowners coverage, they are legally obligated to offer you earthquake coverage for an additional premium. The earthquake coverage may be written directly by the homeowner’s company, by a separate insurer, or through the California Earthquake Authority.
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