Cheap car insurance in California

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.

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, don't 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 person's 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.


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