|If you have recently purchased a car or are thinking about purchasing a car in California, then you are probably aware of how much time and energy needs to be invested to find the right one for the right price. This degree of effort should also be applied when shopping for auto insurance, but it is not always easy to do. Many car buyers spend countless hours researching and shopping around for their new vehicle that by the time they realize they need cheap car insurance in California, they are so worn out and settle for mediocre deals. DON’T SETTLE. Let Shift Ins. provide you with the best rates so that you spend less time worrying and more time enjoying your new car.
What Is Comprehensive and Collision?
When financing a car through a bank, dealership, or other third party you will need comprehensive and collision coverage on the vehicle you are purchasing. Comprehensive and collision coverage is protection for your new car and is often referred to as full coverage or simply comp/collision. With this type of coverage, if anything were to happen to your new car—knock on wood—the insurance company will either repair or replace your vehicle after the deductible is paid or subtracted. Just like any other investment, it is always wise to ensure you have the proper coverage.
It is extremely important that you are aware of how a deductible works. A deductible is the portion of risk you are willing to pay for in the event of a covered claim. Deductibles come in different amounts with the most common being $250, $500, and $1000. No matter which deductible amount you select, you are responsible for paying that amount—and only that amount—in the event of a covered claim and the insurance company will cover the rest. Let’s consider the following scenario: Say you own a vehicle that was sold at $25,000 and is currently protected under comp/collision coverage with a $500 deductible. You have just been involved in a traffic accident that is covered by your insurance company and the damage to your vehicle is assessed to be $4,000. Because you have a $500 deductible, you are responsible for paying for $500 of the damage but the insurance company will pay the remaining $3,500. Now consider the same scenario but instead of $4,000 damage, your car is severely damaged after the traffic accident and is a total loss. In this case, the vehicle will need to be replaced, so the insurance company will write a check out to you so that you can buy yourself a new car. HOWEVER, the amount on the check will NOT reflect the sale value of the vehicle, but instead will reflect the vehicle’s actual cash value before the traffic accident occurred, minus the $500 deductible. So in the above scenario, even though your car was sold to you at $25,000 and you have a $500 deductible, the insurance company will NOT provide you with a $24,500 check. This is because cars depreciate in value the more they are driven. As soon as a new car is driven out of the dealership lot, it is no longer worth what it was sold for.
There are different types of coverage available for your new vehicle. If you are not financing your vehicle because you were able to pay it in full, you have more freedom in the type of coverage you select. Make sure to discuss your needs with a Shift Ins. agent to obtain the coverage that’s right for you.
Why do I need Liability?
Being on the road comes with great responsibility because your driving habits not only affect you, but they also affect the drivers around you. Liability is essential because it provides coverage for your actions and, most importantly, it is required by law. The state of California wants to make sure that, in the event of a traffic accident, the damages that you are responsible for will be paid for through your insurance company. All California drivers are required to obtain liability, which addresses the minimum bodily injury and property damage requirements. At the very least, you must carry a bodily injury of $15,000 per person and $30,000 per occurrence as well as $5,000 for property damage. This ensures that those who suffer injury or property damage at the hands of another driver will be properly compensated. Let’s consider the following scenario: Say you are involved in a traffic accident that is covered by your insurance company and you are at fault. There are two people in the other car but only one is injured and needs medical attention. If you have the minimum liability described above, your California car insurance company will cover up to $15,000 of the injured person’s medical expenses and up to $5,000 of damage to the vehicle. Now what if there were three people in the other car and all of them were injured and require medical attention? In this case, the insurance company will NOT cover $15,000 of medical expenses per person because the bodily injury of this particular liability caps at $30,000 per occurrence. This means that $30,000 is the maximum bodily injury that will be covered. So in a scenario with three injured people, the $30,000 will be divided among them so that the insurance company covers up to $10,000 of medical expenses per person. However, the insurance company will still cover up to $5,000 of damage done to the vehicle.
The above scenario provides an example of the most basic form of liability. You can set up higher limits of liability so that you don’t have to pay out of pocket in the event of a serious accident that exceeds the costs covered in basic liability. Make sure to discuss your needs with a Shift Ins. agent to obtain the liability that’s right for you.
It is important that you always keep in mind that driving is a privilege, not a right. This means that you are required to follow all driving rules and regulations or your driver’s license can be taken away from you at any time. If someone hurt you or damaged your car, wouldn’t you expect to be taken care of?
California Car Insurance
At Shift Insurance, we take pride in being your connection to the insurance world. Because car buying is tough enough, we want to make sure you make the most educated decision when it comes to your investment. If you are worried about whether your new auto is properly covered or whether you are paying the right price, we are here to help you. We offer all forms of coverage for your new car from low-cost basic liability and uninsured motorist to full coverage-comprehensive and collision, rental, towing, and roadside. We will help you understand the different types of coverage to determine which one is right for you. Find out how much Shift Insurance can save you by simply filling out our quote form or calling us directly and one of our licensed agents will assist you in finding the best coverage for the lowest price. Because we will show you multiple options, you can be confident that you will make the best possible decision. If you want to know more about other ways to save money and receive discounts for your new car, please visit the Shift Insurance Blog and see how committed we are to being your number one insurance resource in California.
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