California Car Insurance
It is definitely not cheap to drive a car in California. You have not only the costs of buying and maintaining a car, but the car insurance is a major cost, too. No matter if you are driving in California or elsewhere you always need to mitigate the risk of a potential accident. By getting a car insurance you can ensure that accidents don’t hurt you financially.
Unluckily having a car insurance in California is more expensive than in other states of the USA. In California insurances offer 3 main classes of auto insurance:
- Assigned Risk
- Preferred Risk
- Standard Risk
In case you are not from California, probably an international business man or an international student who has come to study at a university in California, you will have to go for an assigned risk insurance plan, which is the most expensive one.
If you are resident in California, however, you will normally fall under the preferred car insurance option. The prerequisite is that you have a clean 3 year record of driving.
Not only the class of a car insurance plan is important, but another important factor is the cost of the plan. It is mandatory for you to purchase a plan that covers damages caused to the other party or the other party’s property because of an accident caused that was your fault. A lot of people also choose to cover themselves and other passenger who are riding along them in their cars.
If you can afford to spend money a good option for you would be to opt for a Collision coverage type of car insurance. With this option the damage caused to your car will also be reimbursed by your insurance company. In this case - of course - the damage should have been caused due to negligent driving of the person whose car hits your car. You disqualify for any insurance coverage automatically if it was you who drove with negligence.
People from California who think that their cars might be stolen or damaged by reasons other than an accident – probably because they are living in a bad neighbourhood - should opt for a plan which covers such events. Usually you have to pay the highest premium for such a comprehensive plan as there is high risk involved.
There are also other rules that you should keep in mind when you intend to buy car insurance in any part of California. The more you drive the more you pay as premium.
- You are getting older? Oops, watch out! You will have to pay more car insurance premium if you want to drive in California.
- If your car is new, the premium for it will be high.
- You should carefully study the process of making claims in the event of an accident. It is a good idea to write down the list of documents that are required to make a claim. You should also choose an agent who will offer you help in claim filing and policy renewals.
- If you get an anti-theft device or airbags you can save insurance costs.
- Try to take all your insurances - health, home, farm, car - from one dealer and/or one insurance company. Then you might be able to qualify for some discounts. The same is true for taking car insurance for multiple automobiles.
- If you want to get insurance for an old automobile, you can go for only the key coverage. You should drop the unnecessary ones and thereby save hundreds of dollars every year.
- Finally, don’t just ask one or two agents. Take quotes from as many agents as you can. You shouldn’t hesitate to bargain as most insurance companies will offer discounts.
If you are buying a new car usually the dealer himself will tell you about the insurance options for the car purchased. Beware that there are a number of local insurance companies who also sell all type of car insurance.
In the past few years the comprehensive insurance plan has gained huge popularity. However, it is not an option for everyone as it is the most costly one. Don’t worry! Car insurances usually start from $500 for a year. However, the actual amount could largely vary from person to person. It is advisable in any case to do a lot of research and compare different insurances to find the best deal for you.