September 19, 2019

Effects Of California State Law On Auto Insurance Rates

Are you attempting to obtain more information on the effects of California state law on auto insurance rates? You may be at the edge of your seat desperately trying to figure out what your best option is for cheap auto insurance. Let us explore your options and find the best policy that is right for you.

State laws have an important effect on the amount of car insurance a person is responsible for purchasing. The California state law for minimum car insurance is 15/30/5, which means a 15,000-dollar minimum coverage amount for bodily injury, a 30,000-dollar minimum coverage amount for all persons involved in one accident, and a 5,000-dollar minimum for property damages. California is one of the most relaxed states when it comes to car insurance, which means that it is not a state that has extremely high minimum limits such as Alaska or Maine. Some states require a driver to purchase more additional types of coverage, such as uninsured motorist coverage, which can result in a significant increase atop a premium amount that is already much too high.

There are many different types of cheap auto insurance coverage plans that are offered and it is up to you, the person who is buying the policy, to decide what type of coverage you need to include in your policy. For some drivers, it is more important to incorporate comprehensive coverage and collision coverage into their plan because they are in need of more protection for their vehicle.

If you are financing a new car that you recently purchased from a dealership, you may be required to purchase a full coverage package from a car insurance company. If you live in a state where the minimum insurance requirements are higher, this will inhibit your ability to obtain cheap car insurance. Are you a parent who is concerned about the safety and well-being of your inexperienced teenage drivers? Then you will probably jump at the chance to receive personal injury protection, also known as PIP, which provides medical coverage for several passengers who were involved in an accident. With this coverage, it does not matter which person was at fault in order to assure coverage.

The state laws in California can become troublesome for a driver when they become penalized for violations. There was a recent proposal that required all drivers who violated the hands free law, which prohibits drivers from using hands free cell phones, to suffer from a raise in their insurance rates.

The price you get on auto insurance will greatly depend on what state you reside in. Federal initiatives attempt to interfere if the state laws become too biased.