California Car Insurance
Driving in California is by no means, a cheap option. Apart from the cost of buying and maintaining the car, the Car Insurance is a major cost. If you are driving in California, then you need to mitigate the risk of a potential accident. Car insurance is the most popular option for the above scenario. A very few choose the option of keeping a deposit of US$35,000 with the local Californian authority, the Department of Motor Vehicles (DMV) or any other state authorized company.
Car Insurance Policy
Car insurance in California is expensive compared to other US states. There are 3 main classes of auto insurance in California; Preferred, Standard and Assigned Risk. If you are an international businessmen or tourist on a short stay in California and if you have to purchase a car insurance plan, then most likely you will have to buy the costliest option; the Assigned Risk. Residents of California usually fall under the Preferred option. However, it is near mandatory that you have a clean 3 year record of driving to get the Preferred car insurance policy.
Car Insurance Plan
Apart from the class of a car insurance plan, the coverage is a key parameter to determine cost of the plan. At a minimum, you will be mandatory required to buy a plan which covers damage caused to the other party or the other party’s property because of an accident caused by you. Most individuals also cover themselves and any other passenger riding along them in their car. If you can shell out more premiums, opt for Collision coverage type of California car insurance. In this variety of the coverage, the damage caused to your car will also be reimbursed by the insurance company. Of course, the damage should have been caused due to negligent driving of the person whose car hits your car. If you drive with negligence, you automatically disqualify for any insurance coverage. Californians who fear their car getting stolen or damaged by reasons other then accident opt for a plan which covers such events. The premium for such a comprehensive plan is the highest because the total risk covered is highest.
Apart from above rules, there are some more thumb rules, described below, which one should keep in mind while buying the car insurance in any part of California.
Top rules for buying a car insurance
- The more you drive the more you pay as premium.
- If the car is new, the premium is high.
- Are you getting old? Oops, Please pay more car insurance premium if you want to drive in California
- If you are planning to cover your old automobile, you can go for only the key coverage. Drop the unnecessary ones and save hundreds of dollars every year. Statistics suggest that, the insurance covers a decade back were not of the Comprehensive type. Insuring against a car theft or any act of vandalism to the car was unusual then.
- Fit an anti-theft device or airbags and save insurance costs.
- Try to take all your insurances; viz. health, home, farm, car from one dealer and/or one insurance company. You may qualify for some discounts. Same stands true for taking car insurance for multiple automobiles.
- Carefully study the process of making claims in the event of an accident. Note down the list of documents required to make claim. Often it helps to choose an agent who would give you good service and help in claim filing and policy renewals, if any.
- Lastly, don’t just ask one or two agents. Take quotes from as many as you can. Don’t hesitate to bargain. Most insurance companies offer discounts.
If you are buying a new car from a showroom, the dealer itself will guide you about the insurance options for the car purchased. Apart from that, there are a number of local insurance companies who sell all type of car insurance. From past few years, the Comprehensive plan had gained popularity. However, if you have other insurance policies then you need not always opt for the costly Comprehensive plan. Car insurances usually begin from $500 for a year. However, the actual amount could largely vary from person to person. If you take more then one insurance i.e. a home and car insurance, companies can offer you even 50% discount in premiums.