About Purchasing Auto Insurance In California

The state of California requires registered vehicles to carry a California automobile insurance policy.  Drivers are responsible for damage or injury inflicted on another party.  Many options are available.  Selecting the proper coverage and carrier that meets your specific insurance needs can be crucial.  Drivers must carry a minimum of $30,000 per accident, $15,000 per person with $5,000 in property damage.

• Vehicles - Choose your vehicle wisely.  The type of vehicle you wish to insure directly determines your insurance premium.  Insurance carriers consider certain vehicles such as sports cars and SUV’s high-risk.  Sports cars are more often involved in high-speed collisions, while SUV’s are more likely to roll over in the event of an accident.


• Coverages – Give thought to your vehicle coverage.  Coverage should be enough to protect the vehicle while meeting your needs financially.  Financed and leased vehicles will require a policy including both collision and comprehensive coverage.  This will insure damage resulting from acts of nature, negligence and vandalism as well as any type of accident or collision. Insurance companies require a down payment to bind the policy.


• Deductibles – Typical comprehensive and collision coverages are issued with a deductible.  Deductibles can range from $0 to $1,500.  A higher deductible usually means lower premiums.  You are reducing the risk for the carrier by accepting more of the financial risk up front.


• Comparison Shopping – Shop around.  Rates will vary depending on the carrier.  Investigate the services and coverage offered by each company against its competitors. Most companies offer discounts such as safe driver and multiple car discounts.  Always inquire to see if you qualify for any of these offers.


• Driving History – A safe driving record means lower insurance premiums.  Your premium is determined by your driving history.  If possible, have your driving history on hand.  This will help to ensure the rate is as accurate as possible.  Know your traffic violations and dates.  Know which coverage was used to settle any collisions or accidents.  Inaccuracies can mean higher premiums.