California Auto Insurance Policy
Reader’s Question:
Hi. I just moved here in San Francisco and I’m still learning about a lot of things including state insurance requirements. Can you tell me more about California auto insurance policy?
Tammy
San Francisco, CA
Hi Tammy. San Francisco is a melting pot of individuals from all over the world. You need to learn a bit of the ins and outs of the California auto insurance policy before you venture to buy one. Every individual car insurance company has its own list of discount rules, if you are thought to be a driver established in a low income bracket. In the California Low Cost Automobile Insurance Program (CLCA), San Francisco is listed as one of the many counties which are covered by affordable yet the best California auto insurance policy.
California follows a Tort system which means someone must be found to be at fault for causing the accident, and that person and his insurance company are actually responsible for all of the damages. The details of a tort system vary from state to state so check with your state insurance regulator for the specifics on your state.
California state law requires minimum Bodily Injury Liability coverage of $15,000 per injured person up to a total of $30,000 per accident and Property Damage Liability coverage with a minimum limit of $5,000. Personal Injury Protection (PIP) in your coverage helps pay for reasonable and necessary medical expenses for you and your passengers.
That’s why most Californians complain about the cost of their car insurance. It may be surprising, given that a typical California auto insurance policy costs at least several hundred dollars a year. Depending on your age, driving record, and other factors, your annual premium can be significantly more than that. But since auto insurance is a necessity in California; you are required by law to purchase a minimum amount of liability coverage. So, you should probably have more than just the bare minimum if you want to provide yourself with adequate protection.
Loading ...