CALIFORNIA – Since automobile repair costs have been high and surging towards unprecedented levels, it may not be enough to minimally depend on California’s insurance requirements.
Though it is considerable that California State’s minimum requirements are among the most affordable in the United States, several auto insurance gurus advise likely customers to look into the possibility of availing higher limits than what is minimally required in order to benefit from preemptive self protection for their vehicle and their assets. Experts advise that looking into rates and quotes provided by various insurers – who are known to provide extensive coverage – would enable customers to receive more benefits at minimal cost.
At present, California automobile insurance laws compel car owners to carry liability limit. Rates would usually range in the league of $5,000 (for property damage), $15,000 (for bodily injury to one person), and $30,000 (for bodily injury for two or more individuals). To operate a vehicle within legal boundaries and in order not to forfeit registration, these aforementioned requirements should be in effect. Thus, any wise customer would be wary of such limits to defray eventual costs in the event of a traffic accident.
The California Department of Insurance, in the official website provides a clear warning: “Since you may be personally responsible for damages above the policy limits, you should consider purchasing liability insurance with higher limits than the minimum required by law. With the increased cost of hospital stays, medical care, and car repair, it may be well worth considering the extra premium to purchase higher limits of coverage.”
In a hypothetical scenario, if any person were to accidentally hit a vehicle which is declared ‘non-repairable’ and it is worth more than $5,000, policy limit will be covered by an insurer and a policy holder may even be held liable for covering the remaining costs of the other party.
On the other side, some California customers have taken advantage of the state’s “Low Cost Auto Insurance Program.” This, at bare minimum, provides low-income owners with a more reasonable insurance option which merely requires a statement of household income, a good driving record and reported value of a vehicle at the time of purchase.
This would be a good option, but nonetheless, it would still be well worth it if a wary customer took initiative to look into rates and quotes provided by various insurers; looking for insurers who not only provide extensive coverage, but also higher limits of coverage at better, more reasonable rates. Obtaining free quotes and rates from reputable insurance companies on online forums and websites are replete online which may go a long way in terms of securing a better financially insured deal.