Are you tired of looking for the lowest down Liability Auto Insurance Quotes in California or just a non owners insurance policy, regardless if you live in Riverside CA or Los Angeles? If this describes your insurance circumstance, then finding the “best insurance quote” is of most importance.
Everyone is looking to lower their premium on their rates without sacrificing coverage.
You may have questions surrounding your auto policy so, we have compiled some of the most common questions with corresponding answers to help you through the buying process and experience.
Liability Auto Insurance Components
Understanding the different components and discount options offered on your vehicle policy, is the first step to lowering your rate, without compromising coverage. So, let’s begin with why you actually need this basic coverage requirement.
Tips to Help You
We are going to discuss two different generations by age. The first category is if you are a senior citizen. If you are a citizen, check with your local DMV to see if a driver course for Mature drivers is available.
By taking this course you can save up to 10 percent off your total premium.
This is huge, if you are a senior living on a fixed income. You can also check with certain organizations that cater to a certain demographic are places such as AARP.
How Teenagers will Effect Parents Policy
If you are a parent with a soon to be sixteen year old or a teenager driver, check with your current carrier about the guidelines about new drivers. It is important to understand these guidelines because they can end up costing your more on your premium.
The reason is some companies will charge for your teenage driver when they turn sixteen, while other carriers will wait until your child actually gets an active drivers license.
So having said this, make sure to research your current company and future carriers about new driver guidelines, especially if you have a tween in the household.
It is always best to be well prepare and not be shocked with an increase in your premium on paper. No one likes surprises like these.
You may unfortunately fall into a program of coverage that will not accept the new driver onto the policy regardless if your child has an active license or is sixteen years of age.
If you are the parent and don’t want to switch current carriers, you can always have your child buy a separate individual policy with just their vehicle listed.
Make sure to include yourself as the parent on the policy so, you can drive your child’s vehicle.
Comprehensive and Collision Insurance
No Physical Damage Coverage unlike full coverage vehicle coverage, is mandatory to carry in the state of California and most states.
Let’s say you live in Orange County California, you are a brand new driver and looking for the lowest online quotes and rates possible. You will begin your search with asking for the minimum requirement coverage, necessary for the State you live in.
California will require insurance limits to be at a minimum of 15/30/5.
The property damage coverage is only $5,000 per incident which covers for damages property. The bodily injury portion which covers the other party in case of injury or injuries is $15, 0000 per person up to a total of $30,000 per accident.
This portion is also known as insurer damage since it would be the responsibility of the company to pay if their client is liable. That’s it, this protection serves to protect the “other party” which is why it is called no physical damage protection.
Your personal vehicle damage would not be covered under this program since you only have the liability portion on the policy.
However, this coverage on your policy would cover the other party’s vehicle if you were involved in an accident.
Liability Car Insurance Rates
This question is commonly asked either on blog forums, by other media outlets or by some of our clients who rather risk driving without coverage, than to continue making payments on their policy.
The reasons can be many, from not having enough money to cover their household costs, to being recently laid off from work, or even just being careless their decision to not have automobile coverage protection.
It’s the Law
Regardless of the reason, it’s the law to carry coverage in the state of California, so, make sure to prioritize that bill into your budget. You may be the safest driver out on the roads.
However, the risk of someone else hitting you or other elements such as road condition or weather elements to name a few, can all be factors in a higher probability you will be involved in some kind of incident or loss.
Why Coverage Was Created
Liability Coverage programs allow you the individual, to put in a small fee called policy coverage premiums, into a large pool with other people needing coverage like yourself.
This pool is based on the “large number theory”, meaning the larger the pool of like demographics allows individual cost of car coverage protection to minimal compared to paying out-of-pocket.
This offsets the damages and injuries a company would take on in a pool of large numbers.
Your provider or company will have a financial reserve that is regulated by the Department of Insurance to ensure if everyone in that pool were to file a claim against their policy, enough money would be available to pay out all the claims.
Insurer damage is offset with the amount of policies on file. The larger the pool, the more likely damages and injury costs will be reduced with intake claims, since they balance out.
In some cases this does not occur and a company can become insolvent since the insurer damage is larger or greater than the reserve pool.
This can be due to a catastrophic event where one territory is hit terribly bad, and one insurer has more damage in that territory than others depending on their niche market.
So, in closing rare yes, but companies can become insolvent or placed on moratorium which means they are not allowed to write new business.
If a company is on moratorium it can still maintain their current customer’s book but new business is off-limits.
Notifications to You
In some cases, a letter will be sent out to all insureds notifying them of their auto rates status. Sometimes it may even indicate if their current provider or company will be able to maintain their policy.
If not, a letter will be mailed to your residence letting you know your options. In some cases, the carrier may have a sister company they can convert your policy over too.
If you are working with an broker or agent, you can request them to search for a new provider or company that will accept their risk.
If you are working with a single direct carrier you will not have this option since they only represent one company.
Refer Me Out
They may be able to refer you out to a brokerage or agency. Either-way, it’s best to shop your rates with multiple carriers because rates do change and insurer damage increase or decrease can effect your rates so, just be aware.
If you are looking to purchase only the liability portion, than make sure to research coverage companies who specialize in only that market.
They can offer far more competitive rates then their full coverage companies.
It makes sense to shop and compare auto quotes, but also make sure you are comparing quotes within your specific market and personal needs.
If you were ever with a company who recently denied or dropped you because of a “moratorium” or freeze in writing new business or certain territories, than you have experience the “reserve pool” working.
A freeze can come either by the Department or the actual provider, which serves to protect all the insured in that pool.
What good would coverage be if when you went to go use it, you found out that the company went insolvent or is out of business.
Look for car insurance companies with an A rated score. You can also verify withe the Department of Insurance since they handle the regulation of insurance in their governed stated.
Regardless of the brand name of the carrier or company, all rated A companies ensure California Insurance Guaranty, just like your bank regardless a Credit Union or traditional bank are all backed by the FDIC.
The same protocol follows with California Providers and Companies.
Who is an Insured?
Great question since you will need to know who will be covered under your liability auto insurance policy.
To help you understand, if you were to buy a liability only auto policy and wanted to have your best friend drive your car, than you would need to make sure your auto insurance policy includes “permissive use.”
Permissive use would allow you have your buddy drive your car as long as he or she didn’t live with you in the same household.
Also, this coverage would take in effect if this driver does not use your vehicle as primary transportation.
Unfortunately, we have seen many people buy Full Coverage to learn after the fact, that they have a “named insured policy.”
This type of liability coverage prohibits any driver not listed on your policy. Some people have learned the hard way about this feature, which normally always comes after a loss or claim has occurred.
Find the Best Deals
You want to ask these important questions when you receive your quotes. Unfortunately, not all companies or providers will explain the coverage details, so take notes and ask questions during the quoting process and not after an accident.
Each coverage policy will have different language in their underwriting guidelines, but for the most part an insured is a resident spouse, family member who lives with you.
Family Member Coverage
If you do not want a living family member to be listed on your personal liability policy, than you can exclude that driver. You either have to exclude or include on your policy.
If you do not disclose other potential drivers in your household, than you run the risk of having your coverage void if an occurrence should happen with a person living in your household and using your vehicle.
Most providers and companies have a data base that can run consumer background reports on you, disclosing all past and present household residents of that property.
If this should happen, you would receive a letter from your company or provider asking you to either exclude or include the following drivers found on our consumer report.
So, if you do not want any future surprises with your policy premium or coverage, make sure to disclose all drivers on your policy at the time of your policy quote and whether you have “permissive use” included on your policy.
Liability Coverage for Business
The last definition of an insured is for business use. If a business provides permission for a representative to use their vehicles, than their car insurance coverage would extend for these drivers.
However, for the sake of discussing only personal coverage policy, business use will not be discussed in-depth in this article entry.
Business car insurance is normally not found on your personal policy. Business use is excluded on most liability auto insurance, and if needed, you would need to buy business coverage separately.
Where to Start
Target Up Insurance has been helping people find the Cheapest liability Car Insurance in California for over 30 Years. With our services expanding to Arizona, Nevada and Texas, we are bringing low-cost car insurance to all, regardless of your driving record or age.
We represent over 100 Top Notch Insurance carriers specializing liability auto insurance, non owner car insurance. Remember, not all car insurance is the same, that’s why you’re searching for cheap insurance quotes to begin with.
Looking for affordable liability insurance coverage for your car, than contact a license insurance specialist at 800-962-0085!
Service Areas: Riverside, Pomona, Diamond Bar, Anaheim, Orange, Fullerton, Costa Mesa, Huntington Beach, Corona, Ontario, Victorville, Moreno Valley, San Bernardino, Los Angeles, Torrance, Irvine, Anaheim Hills.
Liability Only Car Insurance