The state of California requires that all drivers carry car insurance; as a result, there are many drivers who are looking for cheap car insurance and many companies willing to supply it. Drivers who do not have their cars insured are subject to civil penalties. In California, un-insured drivers who are involved in accidents may even lose their license. California drivers are also required to have proof of car insurance on them whenever they are operating a vehicle. A ticket can be issued if a driver cannot produce proof of insurance when requested to do so by someone in authority. Given the strictness of the California statutes, it is important for any driver looking for cheap car insurance to make sure that when he/she purchases a policy it meets or exceeds the state minimums. California state car insurance minimums are $15,000 for the death/injury of one person in an accident and $30,000 for the death/injury of all the people involved in an accident plus an additional $5,000 of insurance to compensate for property damage. While a person may fulfill this obligation by posting a cash deposit or surety bond with the California State Department of Motor Vehicles, it is far easier to buy a cheap car insurance policy. However, it is important when purchasing cheap car insurance to make sure to deal with a reputable company. There are other important considerations when deciding whether or not to buy cheap car insurance. Cheap car insurance is generally suited to those who drive old vehicles, dont drive a great deal and are of limited means. People who own late model cars and use them a lot should not skimp on insurance. The same is true of people who have significant assets. Bear in mind that significant assets does not mean that a person is a millionaire. All of a persons assets (including future earnings) can be at risk as the result of a car accident for which the person at fault is not sufficiently insured. Also, cheap car insurance may not cover a person in the event that his/her vehicle is damaged or destroyed by an un-insured driver or a hit-and-run driver. Cheap car insurance almost certainly will not reimburse a person for towing charges or for a rental vehicle while a damaged car is being repaired. All cheap car insurance companies are not created equal. In the state of California insurance companies have the right to charge premiums based upon their loss histories; thus, different companies may have different rates depending upon the payout expenses they have incurred. Therefore, when searching for cheap car insurance, a person should compare several area companies. It is important to make sure that the companies being compared are compared with the same policies. This ensures that a decision is made based on the reputation of the company, rather than the policy differences. The California Compulsory Financial Responsibility Act mandates that all persons operating vehicles within the state must carry a certain minimum level of insurance. Possible civil penalties for disregarding this law should convince a person of the need to be properly insured. Many cheap car insurance policies will meet these minimum standards. When buying cheap car insurance, however, it is smart to understand the risks inherent in buying this type of policy. Remember that with insurance the wisest course a person can follow is to buy the most expensive policy within his/her price range. |
