What's Auto Insurance in California?

Auto insurance is a type of policy that provides financial protection in the event of an accident, theft, or damage to a vehicle. In California, all drivers are required to have a minimum amount of liability insurance, which covers damages to other people and their property if you are found at fault in an accident.

Auto insurance policies also have limits, which are the maximum amount of money an insurance company will pay out for a claim. These limits are typically broken down into two parts: bodily injury liability and property damage liability.

Bodily injury liability covers the medical expenses, lost wages, and pain and suffering of other people involved in an accident that you caused. Property damage liability covers the repair or replacement of other people's property that you damage in an accident.

In addition to liability coverage, there are several types of optional coverages that can be added to an auto insurance policy in California, including collision coverage, which covers damage to your own vehicle in an accident, and comprehensive coverage, which covers non-collision damage to your vehicle, such as theft, vandalism, or natural disasters.

It's important to work with an insurance agency that can help you understand the different types of coverages available and determine the best policy for your needs and budget.

In California, the minimum auto insurance coverage limits are:

• $15,000 for injury/death to one person
• $30,000 for injury/death to more than one person
• $5,000 for damage to property

However, it's important to note that these are only the minimum required limits, and it's often recommended to have higher coverage limits to ensure adequate protection in case of an accident.

Why do you need auto insurance?
It's really all about protecting yourself financially.

• If you're in an accident or your car is stolen, it costs money, often a lot of money, to fix or replace it.
• If you or any passengers are injured in an accident, medical costs can be extremely expensive.
• If you or your car is responsible for damage or injury to others, you may be sued for much more than you're worth.
• Not only is having insurance a prudent financial decision, many states require you to have at least some coverage.

Questions to ask your agent
Your Independent Agent is an advocate for finding auto insurance that meets your specific needs. Here are a few things to consider as you prepare for the discussion:

• How much can you afford to pay if you get in an accident? (To keep premiums low you may want to have a higher deductible and be willing to pay more for repairs.)
• What is the insurance company's level of service and ability to pay claims?
• What discounts are available? (Ask about good driver, multiple policy and student discounts.)
• What's the procedure for filing and settling a claim? (Ask who to call and what happens after you file a claim.)