« Return to Learn

Understanding Your California Auto Insurance Needs

When you begin to take the steps necessary to understand your California auto insurance needs you will start to look at the variables that should influence your decision. Some have a tendency to view coverage as a gamble but it is not. There are many obvious variables that can alert you to the fact you are under or over insured. For example, the automobile you drive, the drivers, your present financial situation and driving habits. Assessing these variables can give you a clearer and more detailed picture of your coverage needs. This will lead to a more comprehensive understanding of your insurance picture.

Assessing Your California Auto Insurance Needs

A good step toward understanding your California auto insurance needs is to consider your automobile. If your automobile is almost paid off and is an older automobile your present coverage may not replace your automobile fully. Many types of coverage will only pay the current bluebook value for the car. As you probably know automobiles go down in value through depreciation each year. If you drive an older automobile the value may have decreased considerably and so if it were totaled in an accident you may get a check but will it be large enough to replace the old car with a new one?

Considering the level of your present California auto insurance coverage may be a good idea if replacing your automobile with a new car is important. If you owe more money then your car is worth then the check you receive will not pay off the finance company in full. Insurance carriers have optional coverage known as “gap” insurance which can solve this problem. If your car is totaled then the insurance company will pay the different between what the car is worth and the amount that is owed on it. This way if your car is totaled your financing will be paid off in full and you will be able to buy a new car without additional money your of your pocket.

Evaluate Your Needs

When purchasing California auto insurance needs it is important to avoid the mindset that the least expensive is the best kind of insurance. This is why it is important when evaluating your coverage to consider the drivers that will be using your automobiles on a regular basis. Insurance companies don’t pick random numbers to set coverage rates but in fact they use statistics to determine policy premiums. If you have drivers under the age of 25 in your household you will be paying more because fact is they get in more accidents then those over 25 years of age.

By looking at your California auto insurance needs from a different vantage point you can make sure you are adequately protected. It is easy to try and get the best deal without considering the best coverage. Minimum coverage levels are exactly that-minimum! If you have a minimum of $50,000 in medical coverage and the bills come to $75,000 guess where the difference is coming from? Out of your pocket! Evaluating your coverage needs means determining how much risk you are willing to assume should an accident happen.

Do you live in California ?
California Auto Insurance  |   California Car Insurance  |   California Home Insurance  |   California Business Insurance