There are a wide range of options to choose from with regard to auto insurance in the state of California. But before going for any one type of insurance policy, it is always better to be informed about the various types of policies available in order to make a decision as to which one would best suit your needs.
The most common type of auto insurance policy in the state of California and the whole of the United States of America in general is the third party insurance policy or limited insurance coverage policies. Such policies are basically taken just to conform to the laws of the state. Or in other words, these policies will satiate the basic liability limits in the state. The basic liability limit for injuries or death sustained by an individual in an accident is $15000 and for all the people involved in the same accident, it is $30000 in the state of California. And the basic coverage required for all property damage sustained in an accident is $5000.
These liability limits vary from state to state and depending on whether or not the driver is classified as a safe driver or high risk driver. The third party insurance will cover all these basics but only for those instances when the accident is due to your fault. And only the victim will get the reimbursement from the other party’s insurance company. The person at fault cannot expect to get any reimbursement for the damages sustained. And this sort of policy will not even cover damages or injuries sustained due to anything other than a traffic accident where another motor vehicle is involved.
The other type of auto insurance is an intermediate type of option which is basically a third party insurance policy. The only difference is that along with the third party coverage, it will also cover you against losses due to natural disasters, theft, loss, vandalism or other acts of god. But it will not cover you for losses due to traffic accidents where the other party is at fault. So its third party insurance with some added advantages.
The other type of insurance policy which is at times called as the most expensive type is the comprehensive first party auto insurance policy. This sort of insurance policy will cover you under all circumstances inclusive of those where you are not at fault. But the premium will obviously be very high for such insurance policies.
Apart from the above, there are other added insurance policy options. This can include the collision coverage. This sort of insurance coverage will cover you against collision damage or instances when your car is totaled.
There are also other policies like under insured motorist coverage and un insured motorist coverage. Under insured motorist’s coverage will kick in when the other party who was at fault does not have sufficient coverage to pay for your damages or injuries. It is the same for un-insured motorist’s insurance, because in order to sue the party at fault in court and claim damages, it takes time. But it is a good idea to have such additional coverage because it will always help you in times of need when you have no one to turn to.
