| Auto Insurance is probably the most shopped product in the insurance line, and it's no
wonder. It can be expensive and frustrating. Our aim is to try and take out the mystery,
make the experience easier, as inexpensive as possible and personal. We offer Auto Insurance Coverages for:
In addition, we maintain a wide range of carriers so we can best suit your needs. So if
your the best squeaky clean driver, married or not, had a ticket or two, a young driver ,
had a DUI, or need a filing, we have the right rate and coverage you need.
 Basic
Auto Insurance Information
Liability
Coverage
Other
Coverages
5 Hot Tips about auto insurance
4 Hot Tips about complaints
10 Insurance Terms you need to
know.
Basic Auto Insurance Information
California law requires that all drivers be able to pay damages
resulting from the ownership or operation of a motor vehicle. Drivers must show their
ability to pay damages (called "financial responsibility") of at least:
- $15,000 for each person injured or killed in an accident,
- $30,000 for injury/death to two or more persons in one accident
- $5,000 for property damage from any one accident.
If involved in a traffic accident, proof of financial responsibility
must be provided. The most common way of meeting this requirement is by purchasing a auto
insurance policy.
- Why do I need auto insurance?
State law requires that all drivers be able to pay for (to be financially
responsible for) damages resulting from the ownership or operation of a auto. The simplest
method of meeting this requirement is by purchasing a auto insurance policy. The insurance
policy is a contract which promises that if you pay money now (the "premium"),
the insurance company will pay for certain bills if an accident or loss occurs in the
future.
- What type of insurance do I need?
To meet the minimum requirements of California's financial
responsibility law, you need auto liability insurance in the following limits:
- Bodily Injury (BI): $15,000 per person / $30,000 per accident.
- Property Damage (PD): $5,000 per accident.
-
- What does liability insurance
cover?
-
- Bodily injury liability covers you for injuries to someone else and
property damage liability covers you for damage to someone else's property, when your auto
is in an accident in which you are found liable. Coverage can be purchased in either
"split limits" of 15/30/5 (as above) or in a "combined single limit"
policy of $35,000.
- What is the difference between a "split
limits" and a "combined single limit" policy?
-
- A split-limits policy with BI of $15,000 / $30,000 and PD of $5,000
will pay out as follows:
- The maximum paid for one person's injuries, expenses, etc. is $15,000
under the bodily injury portion.
- If two or more people are involved, the maximum paid out for everyone
will be $30,000.
- The maximum paid out for damage to other people's property (auto, fence,
etc.) is $5,000.
- A combined single limit policy of $35,000 will pay out as follows:
- The maximum damage paid for one person's injuries and damaged vehicle is
$35,000.
- The maximum paid for all people involved is $35,000.
- In each case, the limits apply to each accident and do not apply to legal
defense, which is furnished in addition to your regular limits. For example, If you were
involved in an accident which incurred the following costs: (i) bodily injury (1 person)
of $ 5,000 and (ii) property damage of $10,000, How much would a policy with the above
limit pay?
Under a single limit policy of $35,000, the full policy limits of $35,000 will be paid.
The single limit policy does not specify a limit on any particular loss (i.e. $5,000 or
$15,000 for bodily injury, or $15,000 per person, etc.), but rather a total limit of
$35,000.
- Under a split limit policy of $15,000/$30,000 bodily injury and $5,000
property damage, the policy would only pay a total of $20,000 -- $15,000 for bodily injury
(one person) and $5,000 for property damage.
- Do I need higher limits?
You should consider purchasing liability insurance with higher limits than
the minimum required. Considering the amount of recent jury awards, the extra cost for the
additional coverage may be well worth it. Jury awards can easily be more than $300,00 0 in
view of increasing hospital medical care and auto repair costs.
- What other coverages are
available?
Many insurance companies will also offer the following additional
coverages:
-
- What is Medical Payments
insurance?
Medical payment insurance covers (up to the specified limit you choose) the
medical costs resulting from an auto accident for you, your family, and others in your
auto. It pays no matter who was at fault. You should keep in mind that if you and your
family already have medical insurance, you may not need to purchase this optional
coverage. However, you may want to get this coverage for your passengers who do not have
their own medical coverage.
What is Uninsured Motorist
coverage?
Uninsured motorist coverage actually consists of two
coverages, uninsured motorist bodily injury (UMBI) and uninsured motorist property damage
(UMPD).
- Uninsured motorist bodily injury (UMBI) coverage pays for injuries to you
and to persons in your auto in accidents caused by uninsured or unidentified drivers. The
laws says that this coverage must be offered with liability insurance. If you don't want
this coverage, insurance companies must delete it, but they also may refuse to insure you
at all unless you accept their total package of coverages.
Uninsured motorist property damage (UMPD) coverage pays for damage to
your automobile caused by an uninsured motorist; however, either the owner/operator or the
uninsured vehicle must be identified. Companies are required to offer UMPD coverage with
the liability insurance policy.
If you don't carry collision coverage on your auto, UMPD will pay up to
$3,500 (not to exceed the value of the vehicle). If you do carry collision coverage on
your auto, you can purchase a "collision deductible waiver". If you are involved
in an accident with an uninsured vehicle, your insurer will pay the collision deductible
for you.
-
What is Underinsured Motorist coverage?
Underinsured motorist coverage pays for bodily injury or
wrongful death caused by an underinsured motor vehicle (that is, a vehicle which is
insured, but at an amount that is less than your UMBI limits). Companies are required to
offer this coverage a s a part of uninsured motorist coverage, with limits equal to your
UMBI limits. They may also offer the coverage at limits higher than the UMBI limits.
What is Physical Damage insurance?
This is often called or referred to as "full coverage" which is a
very misleading term. Actual full coverage would include Uninsured Motorist, Medical
Payments along with the Physical Damage and optional Rental and Towing coverages.
- Physical damage insurance consists of collision and comprehensive
coverage.
-
- Collision pays for damage to your auto caused by a
collision with another vehicle or with any other object (i.e. a pole, a wall, etc.),
regardless of who was at fault. It also covers damaged caused by the upset (overturning)
of your auto.
-
- Comprehensive pays for damage to your auto caused by
reasons other than collision, such as fire, theft, windstorm, flood, etc.
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- These coverages are usually offered with various types of deductibles.
-
- What is a deductible?
The deductible is the amount of the loss which you must pay. Anything over
the deductible amount, up to the value of your auto, is paid by the insurance company. For
instance, if you carried collision coverage with a $100 deductible and you had a $500
collision loss, you would have to pay $100 and the insurance company would pay the
remaining $400.
- Why should I pay a deductible?
Basically, deductibles reduce your premiums and cut costs for the insurance
companies. You pay less premium because you agree that the insurer will "deduct"
a set amount from the amount of your loss. Insurance companies offer deductibles because
they reduce the number of small claims which are costly for them to handle. The higher the
deductible, the lower the premium you pay. But, you should have savings set aside to pay
this deductible, in the event a loss occurs.
- Do I need physical damage insurance?
Physical damage coverage is not required by law. However, if you are
financing your vehicle, your lender will require it. Your loan contract will usually state
that proof of insurance must be given to the lender or else they would add their own
policy . The cost of the lender's policy is usually higher than a policy you can purchase
on your own and is added onto your loan payments. Also, the lender's policy does not
provide you with liability coverage. Which you are required to carry by law. -
- If your vehicle is over 10 years old, the cost of the insurance may be
more than the auto's actual value. Find out what your auto is actually worth and then
decide if you want to insure for comprehensive and collision.
- What is Towing Coverage?
Coverage may be available for reimbursement of Towing and Labor charges.
Depending on the carrier, this may be covered only due to an covered loss, and some
provide 100% coverage. Reimbursement ranges from a fixed limit ie: $25 per incident to
actual loss.
- What is Rental Car (Loss of use)
Coverage?
Rental car reimbursement also known as "loss of use" coverage, provides
reimbursement when you need to rent a replacement vehicle should you be involved in an
accident and you car in inoperable or while it is being repaired.
Most carriers offer a per day limit, as well as a maximum per incident amount ie: $25
per day with a 30 day maximum
What is Extended Warranty
Insurance
Extended warranty insurance is now avaiable from many Major Insurance carriers -
Perhaps the same carrier that you have your auto insurance with. These
contracts and carriers are requlated by the State department of Insurance are often
broader yet can cost 25% to 50% less than a similar service contract
purchased at the time of sale through your dealer.
Coverage can be purchased on new and used vehicle for periods covering 3-6
years and up to 100,000 miles. Check it out ---  More
Information
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