California Car Insurance
California insurance motorist are only required to have a minimum amount of coverage, that includes $15,000 for death or injury to one person, any one accident, $30,000 for all persons in anyone one accident, and $5,000 for property damage, for any one accident. Not required by the state of California include comprehensive coverage, uninsured motorist, medical payment, and collision insurance.�¯�¿�½
A pilot program that is available for California Drivers to purchase low cost car insurance. The California Low Cost Automobile Insurance Program (CLACK), satisfies the requirements of the state’s auto insurance requirements. The insurance policy is based on a driver’s household income, driving record, and vehicle purchased value.
California Proposition 103, enacted into law in November 1988, qualifies a Good Driver to get car insurance from any insurance company, and is entitled to get 20 percent reduction in car insurance, compared to a non-Good Driver. A Good Driver must be a California driver licensed for three consecutive years, and have no points on driving record. Also, any major driving violations including Driving Under the Influence, could remove the Good Driver rating. Under Proposition 103, car insurance companies primary factor to calculate insurance rate, must consider operator’s driving safety record, number of miles driven annually, and years of driving experience. Other considerations include, if the vehicle is stored in garage and has security features. Despite the positive aspects for lower insurance rates with proposition 103, drivers should be aware that lower minimum coverage may not be sufficient, to cover any additional liabilities, which the driver would be responsible for out of pocket cost. Additional liability insurance should be considered or purchasing an umbrella policy that would cover most cost of liabilities, above the car insurance policy, and cover any other liabilities. An average umbrella policy provides one million dollars coverage for liabilities, and cost between two to three hundred dollars, a year.
Always recommended to contact several insurance companies or brokers to compare auto insurance rates. Each company calculates their own rate policy, which is partially based upon their own past losses, and expenses. Through your local telephone directory or Internet can provide names, and telephone numbers. Spending some time on the phone, answering questions, can conveniently get price quotes, and save money to get the best rate.
When speaking to a car insurance company, ask if there is any discounts, getting credit for extra driving courses or lectures, having more the one car insured, adding any additional security features to the car, and limiting your driving mileage to and from work only. Inform the insurance agent if you work at home, and if you can pay the premium in one payment per year, rather then in installments, to get a lower premium. Ask if you can make payment by a credit card, because the amount will be billed to you on your next month’s credit card statement, and you maybe entitled to points on the credit card, based on the type of credit card.
When deciding upon a car insurance company, check with the Consumer Complaint Study (CCS) that is published by California Department of Insurance. This will assist consumers on car insurance companies based upon justified complaint study (composite ratio), company performance, and comparison data study. For example, in 2003, the number one rated car insurance company was The Swansea Mutual Insurance Company, that had justified complaint ratio zero, and Number of justified complaints zero.
