You know you need car insurance in California. If that is all you know, you certainly are not alone. Many drivers don’t know any more than that, like how their rate is determined, how insurance really works, what coverage they have and more. Let’s fix that right now! Here’s a few basics you should understand:
#1 Your price is different than someone else’s.
You don’t pay the same monthly premium as your mom or your best friend. The make and model of your vehicle, how far you drive each day for your commute, and your driving record are the biggest factors in calculating what you’ll need to pay. Other factors calculated in are where you live, whether you rent or own your home, whether or not you’re married, your age, and any discounts you may qualify for.
#2 Whether you have collision or comprehensive car insurance.
You may have both, and you may have neither, or you may have just one. Comprehensive coverage provides protection against theft and damage caused by an incident other than a collision, such as fire or flood.
Collision coverage reimburses you for damage to your car that occurs as a result of a crash with another vehicle or other object, like a tree, when you’re at fault. Both comprehensive and collision coverage are optional insurance for the state of California, and better protect your car. Liability insurance is the only insurance that is legally required, because it covers the costs associated with injuries, death, or property damage caused by you.
#3 An expensive car may not always be more expensive to ensure.
When you read that the make and model of your vehicle is factored in to your monthly premium payment, you may assume that means a more expensive vehicle is more costly to cover. This is not always the case. The reason for this is that many high-end vehicles come with safety features that a cheaper car would not. These safety features, like a lane departure warning system and backup camera, make the driver less likely to get into an accident and therefore less likely that the car insurance company will need to pay out on the policy. This is good for everyone!
#4 Never let your car insurance coverage lapse!
Letting your California car insurance lapse is a bad idea, because it will probably drive up the price when you need it again. It’s tempting to cancel your car insurance when you don’t plan to drive for an extended period. Or maybe, you plan on going a month or two driving without insurance because you just can’t pay it right now. It’s also easy to forget to pay the bill. Whatever the reason, if you let your coverage lapse, your insurance rates will be higher when you get coverage again. This is because insurance companies consider someone who is uncovered for a period of time to be higher risk to give a policy too than those who diligently keep their policies active. And of course, driving without insurance is illegal and you’re taking a huge risk by doing so!
Hopefully, this information is very helpful to you. If you have any more questions regarding your Sacramento, CA auto insurance policy, reach out to Pronto Insurance. Perhaps after reading this, you now think you’re paying too much or your coverage is too small. We’re here to help!
