We hope everyone is looking forward to 2016 and everyone has a safe and happy New Year. As you begin 2016, it is a good time to review your vehicle insurance coverage to ensure you comply with California insurance laws. It is also a good time to discuss your vehicle coverage with your insurance agent to ensure you have sufficient coverage to protect yourself and your family in the event of a vehicle accident.
California Minimum Automobile Insurance Requirements
The California Department of Motor Vehicles refers to automobile insurance as “financial responsibility.”Financial responsibility is required on all vehicles in California regardless of whether they are parked or they are operated on California roads.Evidence of automobile insurance must be carried at all times and shown to law enforcement when requested. You must also provide proof of insurance when renewing your vehicle registration and you must provide proof of insurance if you are involved in a traffic accident.Your insurance company is required to report insurance information to the California DMV under California Vehicle Code §16058.
California vehicle law requires that you carry minimum liability insurance in the following amounts:
· $15,000 for the injury or death to one person in a motor vehicle accident
· $30,000 for the injury or death to more than one person in a motor vehicle accident
· $5,000 for damage to property in a vehicle accident
Under California statutes, you can meet the requirements for financial responsibility in several ways.You can purchase motor vehicle insurance from an insurance company; place a cash deposit of $35,000 with the Department of Motor Vehicles; obtain a DMV-issued self-insurance certificate; or, submit a surety bond in the amount of $35,000. If you decide to change your type of insurance or you change insurance companies, you must notify the DMV in order to avoid having your vehicle registration suspended.
What Other Types of Automobile Insurance Should I Purchase?
By law, you are not required to purchase other types of insurance; however, it may be in your best interest to consider other types of automobile insurance.Even though California vehicle laws require every driver to carry vehicle insurance, not all drivers obey the law.According to the Insurance Research Council(IRC), over 12% of motorists in the United States did not have insurance coverage in 2012. In California, almost 15% of drivers were uninsured in 2012.
Liability insurance is required by law to protect others if you cause an accident;however, liability insurance does not protect you in the event of an accident.
You can purchase insurance coverage that protects you in the event of an accident. Types of vehicle insurance you may want to
consider include:
· Uninsured Motorist Insurance (UMI) – UMI covers you in the event you are in an accident caused by an uninsured driver. Your insurance company will pay for injuries and damages pursuant to you policy terms and coverage even though the other driver as responsible for causing the accident.
· Underinsured Motorist Insurance (UIM) – UIM is similar to uninsured motorist coverage because it pays your damages even though the other driver is at fault. However, UIM is designed to protect you in the event your damages exceed the policy limits of the at-fault driver. For example, if your damages total $60,000 but the driver who caused the accident carries minimum liability of $15,000, your UIM policy would pay covered damages that exceed the amount paid by the at-fault driver’s insurance company.
· Medical Payments – You can purchase coverage that will pay the medical costs if you or any of your passengers are injured in a vehicle accident regardless of who is at fault for the crash. Coverage can be purchased in various amounts.
· Collision Coverage – Collision coverage pays for property damage to your vehicle in the event you are the party who caused the accident. If you obtain a loan to purchase your vehicle, the lender will likely require you to carry collision insurance to protect its lien on your vehicle.
· Comprehensive Coverage – Comprehensive insurance coverage protects your vehicle from other damage such as flood, vandalism, falling objects, etc.
· Optional Insurance Coverage – You may purchase other types of insurance coverage. The type of insurance coverage available may vary by company. Your insurance company may offer insurance to cover towing services, roadside assistance, and rental cars. Be sure that you understand the policy terms for optional insurance because many companies have strict limits and terms on this type of insurance coverage.
How Do Insurance Companies Decide What to Charge for Vehicle Insurance?
The premiums for vehicle insurance vary by location and by company.In order to find the best rates on insurance policies, you should shop around.Some companies offer to compare rates for you; however, you should do this yourself to ensure that the rate you are paying for automobile insurance is reasonable.You should also check with the Better Business Bureau and the National Association of Insurance Commissioners to check for complaints filed against the insurance company. You do not want to find out that your insurance company is known for denying claims after an accident.
When you purchase insurance, the insurance company uses several factor to determine the premium you are charged for your insurance.
Factors that are used to calculate your premium may include but are not limited to:
· Your age and gender;
· Your driving record;
· Where you live;
· Your marital status;
· The type of vehicle covered;
· The type of insurance you are purchasing;
· The amount of insurance you are purchasing;
· Annual mileage; and,
· Your credit score.
Some insurance companies may use other factors when calculating your premium. It is in your best interest to obtain at least three quotes before deciding on an insurance company.
Ticket Snipers Can Help You Avoid Higher Insurance Premiums
Your driving record is a huge factor in determining the amount you pay for vehicle insurance.California traffic tickets can increase the amount you will pay for your vehicle insurance for several years.Our California traffic ticket dismissal service can help you avoid higher insurance rates by fighting your traffic ticket.
Contact Ticket Snipers to discuss your traffic ticket. We offer a money back guarantee and we are available 24/7 for your convenience. Before you plead guilty and pay a fine for a California traffic ticket, take a few minutes to discuss how we can help you fight your traffic ticket and win.