The scenic beauty of California has always attracted travelers. Long and winding roads adjoining deep blue oceans always ensures a great driving experience. As we know each state is unique when it comes to implementing their respective car insurance laws. The government of California requires each of its citizens driving a car to have auto insurance coverage. So people want to know about cheap car insurance California.
Every person owning a car or driving in California should be responsible for his driving and should abide by the rules, set for the citizens. One set of laws is the minimum financial responsibility law which holds minimum limits of insurance cover in case you meet with accident. Even if you own a vehicle and do not drive, it is necessary to have minimum liability insurance. Paying for the damages caused by the driver or instead, holding a liability insurance is mandatory in California.
California Car Insurance Laws
Every person owning a car or driving in California should be responsible for his driving and should abide by the rules, set for the citizens.One set of laws is the minimum financial responsibility law which holds minimum limits of insurance cover in case you meet with accident. Even if you own a vehicle and do not drive, it is necessary to have minimum liability insurance. Paying for the damages caused by the driver or instead, holding a liability insurance is mandatory in California.
As mentioned, abiding by the rules and coverage requirements in California is must. Here are the minimum liability requirements that you need to meet in order for you to maintain your vehicle registration:
- $30,000 for injury or death coverage for more than one person
- $15,000 for injury or death coverage for one person
- $5,000 for damage to properties
California law states that for a driver to be legal he must have body injury coverage of a minimum fifteen thousand dollars per person injured, and a minimum of thirty thousand dollars for all the people injured in the accident. Fifteen thirty BI is the commonly used term referred to this coverage. For some people it may seem like a big chunk of money to cover the injuries sustained but if you look at the rising costs for the treatment of injuries, then you can increase your BI to sixty thousand to hundred thousand.
Person Must have a minimum property coverage of at least five to ten thousand dollars. It will give you coverage to the other person's damaged car. Considering the prices of vehicles these days you should really consider increasing this property coverage to at least forty thousand or even fifty thousand dollars. Besides these two basic requirements, your vehicle loan may require you to carry comprehensive and collision coverage for your vehicles. An alternative to the liability policy is to have a cash deposit of $35000 towards DMV Department of motor vehicles or to have a surety bond signed from the California licensed company.
By any chance, if your vehicle gets damaged then collision coverage will help in covering the costs of replacing or repairing of your vehicle. The total cost will depend on what car you own and the age of the car. Your car lender may ask you to purchase comprehensive coverage which will cover you for things like weather damage or if your car is damaged by some animal. Comprehensive coverage covers any damage which is not incurred with an accident with some other vehicle.
Comprehensive coverage is not very much, and it also helps in getting you coverage for theft as well, including personal property present in the vehicle.The cost of comp coverage and collision coverage will depend on the amount of deductible chosen by you. Some other insurance coverages worth considering are over insured vehicle coverage and uninsured vehicle coverage. With the job market stricken by recession coupled with weak economy, a lot of people today are trying to drive without an car insurance.
There are a lot of benefits of having vehicle coverage. Like if you have uninsured motor coverage then you will be covered for both property damage and injury damage if you have a collision with a person not insured. Sometimes what happens is even if they are at fault and owe you money for a car repair bills and/or for medical, they cannot pay you for those. The un insured motorist coverage helps you in such cases. The under insured vehicle coverage works in the similar way.
If you met with an accident with someone who does not have enough insurance coverage to pay you for your medical or car repair bills then this coverage comes into play and pays your bills. One of the last and the most important things is the amount of under insured coverage must match the amount for the uninsured coverage.
California Insurance Policies
Several financial formalities need to be completed before filing a car insurance. To complete these formalities, the driver must possess a driving license issued by the Californian authorities.
After completing these procedures, the driver must fill up an SR-22 form which signifies that the driver is financially responsible while he is travelling in the vehicle. These forms are issued by the DMV, and the insurance company furnishes a copy to the drivers. This form comes under the Financial Responsibility Law that ensures that the person who drives the vehicle is responsible for the mishaps occurring on the roads. The driver is also required to offer evidence of coverage when applying under such law. As a part of this procedure, the documents provided by the driver achieve a legal identity under Californian Law. This provides security not only to the driver, but also the person who suffers during the mishap. Since the person is financially responsible, he is liable for the penalty.
In case the insurance has expired the person may be liable to pay for the damges that may have occured during the mishap. The person may also have to apay a hefty fine before renewal of the insurance is carried out. Prior to filing the Sr-22 form a proof of insurance policy must be attaches to the documents. A low liability coverage insurance cover may not be accepted by the Californian Authorities. The driver is strictly required to adhere to the rules laid down by the insurance comapany during this procedure. The insurance companies are also required to notify the state department limits of coverage that the policy entitles. In this regard the driver may have to report to the DMV in case he fails to satidfy the requirements of the insurance company.
California being the only state where these procedures are carried out, it becomes necessary that the drivers follow these requirements carefully, to avoid legal proceedings against them.
Apart from these requirements, according to the Financial Reponsibility Law the person is required to deposit $35,000 with the Department of Motor Vehicles. After completing these legal duties, the person is eligible to drive in California, and only then is he entitled for compensation. The person is required to renew his policy immediately after its expiry. Failing which a compensation may be required to be paid, or the suspension of the license.
This law enables the driver to claim for compensation only under compliance of a strict code of conduct laid down by the DMV. As a part of this law the Californian government has instructed the insurance companies to formulate rules that will encourage the drivers to drive as less as possible.
As a result certain new rules have been ammended in the laws which include pay-as-you-drive policy. This enables the drivers to pay only for the number miles that they drive.These low cost policies have made driving in California cheaper than earlier.Also,this new concept has received support from many environment protectionist as it reduces the carbon foot print .Apart from these rules and regulations,the driver is required to contact the police in case an accident takes place. According to the laws in California ,the driver may no avail redemption, in case he fails to file a police report after the accident occurs.
California Low Cost Car Insurance Program
Every day, over a million different uninsured California drivers are on the roads, and as we know, this is assuredly one of those things that need to be remedied, and California’s answer was the California low cost car insurance program. It’s something that has helped a lot of people out in the past, and we think that there’s a chance for it to help more people out, provided that they qualify for it. Fortunately enough, those who are in genuine need will probably qualify for it, and we’ll lay out some of the things that you need to know to discern whether you can utilize this program. For any person looking for cheap car insurance California, you need to make sure that you're: A good driver that has no more than one at-fault property damage only accident, or only one point for a moving violation.
- No at-fault accident involving bodily injury or death in the past few years, as well as no felony or misdemeanor conviction for violating the Vehicle Code
- Be at least 16 years old
- Making less than $30,350 for a single person, $41,150 for two persons and $62,750 for a family of 4
- Not driving a vehicle that is valued at more than $20,000 to $25,000
For the person looking to save on their car insurance, they can take solace in the fact that they have a program. This is genuinely pretty modest, and we think that more than a few people can take advantage of this. If you find that this is the case, you may want to contact the proper authorities to iron out some of the specifics. If you do not, there’s always the chance for you to save money to get cheap car insurance in California, it just means that you need to try a little harder. Of course, all of that starts with free quotes, and that’s always been the best way for a person to save a little of money. If you’re looking for a great way to save money on your car insurance policy, we suggest that you always do this, as there’s the chance that your wallet will thank you for it.
Failing to Comply With The Insurance Policy Laws
Drivers, owners failing to comply with the insurance policy laws can attract heavy penalties from the state including suspension of license. According to the new rule in California the state would impose heavy and harsh fines on the owners of vehicles whose policy has lapsed and has not been renewed within 45 days. This new rule has been implemented to target people who do not renew their policy and to keep a check on those people who cancel their policies a few months later after purchasing them.
Anybody found driving without a valid car insurance policy may result in cancellation of the cars registration number. This is applicable to the people who have sold their car and have not taken the pains to transfer the policy, or the registration name within 30 days. Also the state has been enforcing methodological drives and promoting degrees to a driver in which the driver has to pay relatively less amount towards insurance if he attains the degree of a good driver.
In contrast to this case if the driver is found solely responsible for the accident caused, then he has to pay for all the damages including medical bills and car repair costs. This system is also called the tort system in California. Under the law it also permits the insurance companies to exclude a driver from a policy due to legitimate reasons. The excluded driver will not be allowed to drive in any case.
In California all vehicles must be insured whether self owned or rented. Some of the car insurance policies and credit cards provide cover for rented cars, if not you need to purchase insurance from the car rental company. A copy of rental agreement mentioning the coverage should be carried with you always.
California is known to be having one of the most expensive car insurance rates. Getting a quote on insurance is necessary as it simplifies the decision to choose the right plan and gain from it accordingly. You can always choose the right plan for you and saving on time and money by buying the best policy online.
How Much California Car Insurance Coverage Do You Really Need?
In today's world while purchasing a vehicle, car insurance is a important thing which one person must opt in for. What exactly is car insurance? Car insurance is an extra dept which is being paid by the owner for own sake. Car insurance is paid on the purchase of new vehicles for the protection of the vehicle, owner, and own family. If someone is purchasing a new vehicle one should know how much coverage and which coverage should be paid because in the end it helps the owner.
If you are purchasing a vehicle in California then it is important to pay all coverages and should also know how much coverage he or she needs. California is a busy state and full of vehicles. And in such state accidents are normal which makes car insurance important issue. The car insurance paid the owner as much as he can to reduce the damage of the property and risk of his and his family life. Now we will discuss what exactly car insurance is, what coverage should be made and much should be paid. In car insurance much coverage come and we will go through them one by one.
The most important coverage is collision coverage. This coverage is paid for the repair of the vehicle no matter whose fault cause the accident you will get the fund for the repair. This coverage is purely for the repair of the vehicle and not for the owner or for his or her family. Collision coverage helps you to save 8 % to 20 % of your insurance. The second coverage is comprehensive coverage. This coverage helps you when your car damaged from theft or fire. Comprehensive coverage also pays you when your vehicle gets damaged by natural disaster.
For example floods, earthquake, hurricanes etc. one should carry comprehensive coverage as much as he can. Liability coverage helps you in legal issues. It helps you in paying if you damage someone else's property, make injuries to someone or kill someone. One should pay this coverage according to his or her assets. If you have many assets than pay as much as you can to keep you away from legal issues but if you don't have many assets then you can pay less for liability coverage. Uninsured motorist coverage is another important coverage. This coverage helps you when you are being hit by an uninsured vehicle. It pays for you, your car and passengers in the car.
This coverage is helpful at the time of hit and run cases because these days most of the people don't have insurance of their car. In California uninsured coverage is fixed and it is 50/100. The last coverage is medical coverage which is also important. It pays you the medical bills at the time of accident. It pays the medical bill of the driver and passengers of the car.
Full coverage car insurance is a kind of insurance where most of these protections are packaged
So next time when you are buying a vehicle keep all this coverage in your mind.
Average Car Insurance Rates in California
California car insurance rates average minimum prices are
California Minimum Car Insurance Coverage : $588 - $796
California Minimum Full Coverage Car Insurance : $1,562 - $1,811
California Minimum Car Insurance Coverage for Young Drivers : $1,308 - $1,632
California Minimum Full Coverage Car Insurance for Young Drivers : $2,282 - $2,552
Average car insurance California per month : $49 - $212
These prices may vary depending on factors such as your age, marital status, gender, and the value of your car. The quotes are for a middle-aged man who drives an average car. If you want the cheapest car insurance in California, you need to know what the conditions are.
Prices for insurance will vary with the city, it is a good idea to compare auto insurance quotes to make sure you are not paying too much. The biggest cities in California often have higher premiums because there are more cars on the road and so accidents are more likely to happen. If you live in any of the following areas of California expect a higher premium.
- Los Angeles
- San Jose
- San Diego
- San Francisco
- Long Beach
Important Factors Influencing Car Insurance Rates in California
|City Speed Limits||California city speed limits usually 35 mph. Blind intersection 15 mph. School zones 25 mph (Some school zones may have speed limits as low as 15 mph)|
|Freeway Speed Limits||California Highways maximum speed limit is 65 mph. You may drive 70 mph where posteds|
|Blood Alcohol Limits||21 years old or older driver BAC is .08% . Driver using a commercial vehicle 0.04% . Drivers under 21 years 0.01%|
|Open Container Law||California laws prohibit driving with an alcoholic beverage or a marijuana container in the car that has been opened.|
|Cell Phones Laws||Drivers over the age of 18 can use the hands-free phone while driving. They cannot use other kinds. Under 18 years old cannot use any electronic equipment while driving a handheld or hands-free car. The only exception is to use wireless device in case of emergency|
|License Suspension on DUI||first offense DUI in California causes a license suspended 4 months and the court can suspend another 6 months (However, if you prove to DMV that you are registered in a DUI program, you can get it back your license on a limited basis after 30 days.) . Jail time up to 6 months . Fines and Penalties $390 to $1,000|
|License Suspension on DWI||Same DUI|
Cheap Car Insurance California
Some of the top things to consider when searching for cheap car insurance California.
1 - Before you buy a new or used vehicle, do your research and compare what your automobile insurance rates will be on each on your favorite choices. Car insurance premiums are based partly on the car’s sticker price, its overall safety records, costs to repair it and how likely it is to be a car’s "theft of choice".
Many insurance companies offer discounts for features that can help reduce the risk of theft or damage such as daytime running lights and anti-theft devices. To help with your decision making on which car to buy go to Insurance Institute for Highway Safety website.
2 - Shop around. Insurance rates in state of California are different with each insurance company so it is important to do some shopping around to find the best car insurance quotes and not just listen to the top commercials on TV for the best rates (think little green creature with an accent for one!) You can either call different companies directly or do an online search or both. Also utilizing comparison websites for free online quotes is a fast way to find cheap car insurance in California.
Your insurance is there to protect you and your family thus it is vital to choose a company that is stable financially. Do your homework on the financial well-being of car insurance companies by using rating companies such as Standard and Poor’s and A.M. Best.
Don’t do all the shopping for prices alone. Although finding low cost car insurance is important, ask relatives and friends who they personally recommend. You can even ask your individual state insurance department whether they will be willing to provide information on complaints made by consumers regarding the car insurance companies you are considering. Pick a company or agent that takes the time to listen and answer all of your questions thoroughly.
3 - Ask about higher deductibles. Deductibles are simply what you are required to pay out of your pocket before your insurance company pays. Asking about higher deductibles you can lower your costs by quite a bit. For one example, by increasing your deductible from $200 to $500 you could reduce the cost of your comprehensive and collision coverage by as much as 20-35%. Increasing to as much as a $1,000 deductible could save you 40% or even more.
However, before you agree to a higher deductible, be sure you have enough money set aside should you have an accident and need to file a claim and come up with that amount of money.
4. - Cut back on coverage on older vehicles. This has personally saved me an incredible amount of money just recently when I went over my current car insurance plan with a knowledgeable agent. By changing just one simple part of my plan, my 6 months’ premium was literally cut in half!
Automobile dealerships and banks can tell you the worth of your older vehicle. It is time to renew your car insurance, be certain to go over the plan with someone who not only knows what they are talking about but are also honest. Many people have far too much liability coverage and/or coverage for things they really do not necessarily require, especially if the vehicle is ten years old or even older.
5 - Buy your car insurance and your home insurance (or renters’ insurance if living in an apartment complex) from the same insurance company. Many insurers will cut you a deal if you have more than just one insurance through them, and sometimes if you have more than one vehicle insured. There are even some insurance companies that will give deals for long-standing customers.
If you or someone in your family was in the military or was currently active, there was also companies such as USAA that serves the military, and their families for their insurance needs. Take time to really do your homework once you have narrowed your choices down to the top three or so companies to get cheap car insurance in California.
Common Mistakes When Buying Car Insurance in California
As you’re shopping around for California insurance car plans and programs, you probably are noticing that there is a huge range of different options out there. How can you be sure that you find something that not only provides you with a California low cost car insurance program, but also provides you with the top level protection and coverage that you’re looking for? Use this guide to avoid common mistakes and pitfalls, and you’ll be able to come away with the best low cost car insurance in California.
One of the most common mistakes that people make when buying California insurance car plans is that they don’t personalize or customize their program. There are many kinds of “blanket” coverage or plans, and when you work with a big company and not an agent, you might just get tossed right into one of those without any say.
For example, you might get lumped into a “high risk” category that ups your prices without added benefit, or a “bargain basement” category that minimizes your payment but leaves you without any form of valuable protection when you really need it. Either way it’s a bad deal, and it doesn’t have to be that way.
California low cost car insurance program options should minimize expenses while still offering valuable protection, without loopholes and other ineffective options. You aren’t a statistic and you shouldn’t be lumped into broad categories which don’t describe you and your needs.
Another common mistake when looking for California insurance car plans is simply not even knowing what all of those coverages mean. Comprehensive coverage. Full coverage car insurance. Collision coverage. Liability. Medical payments. Property damage. Bodily Injury. Customized equipment. What does it all mean, what are you required by law to have, and what should you pay for given your own unique circumstances? Not knowing this can leave you paying for things you don’t need, missing out on the coverages you think you should have, and more.