Auto Insurance in California
Guide to California Auto insurance Law and Company Rates
Auto Insurance in California, the laws and regulations are relatively simple which is probably the answer to the why the premiums are comparatively lower than in the other states. However, this said, you would still be doing yourself an incredible disservice if you did not shop around a little.
Auto Insurance in California is set as "tort." What this means is that by being a resident of the “ Golden State “you by law are held financially responsible for any damage that you may cause in a car accident. Residents who wish to drive therefore have to be able to produce some proof of financial accountability first. This is usually in the form of an auto insurance policy, or by a cash deposit (or a bond) equal to the amount of $35 000. It is wiser to take out a policy than to risk one's own personal assets.
California Auto Insurance Quotes Unmasked
With regard to accountability minimums, California has the following figures:
Amount to cover damages caused by you to the other party at $15 000 per person
Amount to cover "all" is up to $30 000
Amount to cover damage which is caused to other party's property is only $5 000
These are low by most standards and potential policy holders should consider higher levels if they major assets to safe guard
In California auto insurance companies sell optional insurance packages including: medical payment coverage, collision coverage, comprehensive coverage, and uninsured and underinsured motorist's bodily damage coverage. Rates in the state are determined by firstly taking the cost of covering all drivers (including legal fees etc) and then by secondly dividing this amount/cost by the total number of drivers. So in effect premiums and quotes are calculated using the behavior all state drivers.
These costs are NOT then distributed evenly through. Instead the percentage an individual pays is decided by factors such as one's gender, driving record, age, and insurance history. For more information please Click Here. The formula used to calculate an individual auto insurance in California is unique to each company therefore it is advisable that you shop around first before deciding. Below is a list of sites from which to start from.