Important California Car Insurance Variables.

Prior to Proposition 103, car insurance in California was at an all-time high (in fact, Californians were spending 36% more on auto insurance than the national average!). As soon as this 1988 reform law came into play, however, insurance companies were required to file their rates and receive approval from the California Department of Insurance, eliminating excessive premiums once and for all.

DRIVING RECORD
By keeping a clean driving record –– no accidents, no speeding tickets, no moving violations (or going to traffic school to defer the infraction) –– Californians can greatly reduce the cost of their auto insurance.

ANNUAL MILEAGE
Prop 103 regards mileage as a decisive factor when it comes to overall premium rating. The more time spent behind the wheel each year, the greater chances a driver has of getting into an accident.

DRIVING EXPERIENCE
California doesn’t use age to determine eligibility for a good driver discount, rather the length of time a driver has been licensed. Statistically speaking, the more experience a driver has behind the wheel, the less likely he or she is to get into an accident and submit a claim.

What are the Minimum Car Insurance Requirements for California?

Just as traffic laws vary state by state, minimum coverage for auto insurance varies greatly, too. In California, auto insurance is a mandatory requirement, with drivers required to carry the following coverages:

BODILY INJURY LIABILITY = $15,000 PER PERSON / $30,000 PER ACCIDENT
Helps pay for medical expenses and lost wages for other persons involved in an accident for which you’re found to be at fault.

PROPERTY DAMAGE LIABILITY = $5,000
Helps to cover damage caused to other vehicles, structures like homes and storefronts, and / or stationary objects (e.g. mailboxes, fences, etc.) in an accident for which you are found to be at fault.

Important Car Insurance Coverages for California

While every California driver is legally required to carry the state minimum car insurance coverages, ask yourself this: would they be enough to cover serious injuries and / or replace a newer car in the event of an accident?

The chances are slim.

As of 2019, the average cost of a new car is over $34,000, and the average cost of an ambulance ride is $2,000. Combine that with the increased cost of medical expenses and lost income as a result of accident-related injuries, you’re talking a steep out-of-pocket expense.

It’s also worth noting that bodily injury liability and property damage liability only cover damages to the other persons involved in the accident. What if your car was totaled in an accident? Or, even worse, your loved ones were severely injured? Would you be able to incur such considerable expenses without financial difficulty?

There are many limits available that we can customize to suit your individual needs, some of which include:

Collision – covers damage to your vehicle whether the accident is determined to be your fault or not.

Comprehensive – helps to repair your vehicle when damaged as the result of an event other than collision, such as: theft, fire, vandalism, natural disasters, falling objects, or damage done by animals.

Medical Expenses – can help cover your or your family’s doctor visits, X-rays, EMT & ambulance fees, surgery, and more as the result of an auto accident.

Uninsured / Underinsured Motorist – can help cover the cost of your medical and / or property damage bills in the event the other driver does not carry insurance or does not carry adequate limits.

Classic Car Insurance Coverage for California

Have a classic car? We have a partnership with Hagerty that allows us to offer the following coverage for your vehicle:  

• Agreed value policy guarantees you will be paid every cent of your car’s insured value in the event of a covered total loss
• Significantly lower annual premiums than standard insurers
• Specialized coverage (e.g., spare parts, medical reimbursement)
• Flexible usage

Contact one of our insurance agents to receive a free quote.