In the state of California, car insurance state minimum requirement is comparably low than in other states. The ratio is at 15/30/5, meaning $15,000 bodily insurance or death per person, $30,000 bodily injuries or death per accident and $5,000 for property damage per accident. If you compare this to other states, the coverage is relatively low. And if you come to think about it, where else will you find a car with less than $5,000 value? In case of an accident you will have to pay for high amount of out of pocket cost or around $10,000 to $20,000. California State Minimum Requirement Qualification Well the problem is that there are thousands of uninsured drivers in the roads of California. And the state government is encouraging its citizens to apply for California auto insurance policy at a much affordable rate than not have any insurance coverage at all.Now, you should understand that the state minimum requirement is not applicable to just about anyone. Not especially to high risk individuals and to those who have purchased their vehicle using a financing loan. At such situation, you are required to get wider coverage. If for any reason you have drop your wide coverage, the financing firm will have the legal rights to take your vehicle, as technically, the vehicle is not yet yours. The qualification is primarily determined by your net household income, driving record and of course the value of the vehicle you have. Factors that Affect your Car Insurance Premium The types of vehicle you own First of all, no matter what state you live in, the value of your vehicle will always influence the amount of your premium. The more expensive your vehicle is, the higher cost of repair it will require in case of an accident. Aside from the cost of repair, insurance companies also use the type of vehicle you have as a factor that indicates the probability of an accident. If you own a fast car, then the higher risk of an accident there is. So they will ask for higher premium. Mileage Of course the more miles you drive, the higher probability of being engaged in a n accident. If your house is so much farther away from your work place, then the insurance company will take this as an indication of risk. The more time you spend on the road, the higher chance you have of being in an accident. DUI or DWI record No matter where you're from, if you have DUI or DWI record, you will be placed under the high risk category. Even in California where the auto insurance requirement is relatively low, you would have to pay for higher premium for your California auto insurance coverage.
Please Rate this Article 5 out of 54 out of 53 out of 52 out of 51 out of 5
Not yet Rated
