How To Choose The Best Car Insurance Coverage For Your Needs

Selecting the appropriate car insurance coverage is an important decision that impacts your financial security and legal protection. While California has minimum insurance requirements, they may not always provide sufficient protection.

The Minimum Auto Insurance Requirements in California

California law requires drivers to carry minimum liability limits of:

• $15,000 for injury or death to one person
• $30,000 for injury or death to two or more people
• $5,000 for property damage

However, these limits are often inadequate for serious accidents. For instance, if you severely injure another driver, the $15,000 limit might not cover all of their medical expenses. Therefore, it is usually wise to increase your liability limits.

Assess Your Risks and Needs

Before choosing a policy, you need to evaluate your personal risks. For example, if you drive on congested Los Angeles highways every day, you are more likely to be in an accident. It’s also important to consider the following:

• The driver’s age and years of experience
• The type and value of the vehicle
• Financial stability

Even with low mileage or an older car, insurance with higher limits can protect against significant losses.

Mandatory and Optional Coverages

In addition to the required liability coverage, there are other types of auto insurance that may be helpful.

1. Uninsured Drivers Insurance Although auto insurance is mandatory in California, some drivers ignore this requirement. This coverage helps cover your losses if the person responsible for the accident does not have the right policy

2. Comprehensive and partial coverage

• Comprehensive coverage protects against damage from theft, vandalism, fire, and natural disasters
• Partial coverage includes collision and comprehensive coverage. Collision coverage pays for damage to your car in a collision, regardless of who was at fault

These options are especially relevant for owners of new or expensive cars. Read “Difference Between Civil and Criminal Negligence”  to learn more about the differences between civil and criminal negligence in the context of a car accident.

How do You Compare Insurance Quotes?

When choosing an insurance company, it is important to consider not only the price but also:

• The company’s reputation
• Customer reviews
• Terms and conditions of payment
• Availability of online services

For comparison, it is best to use reputable resources such as Consumer Reports or the National Association of Insurance Commissioners (NAIC).

Understanding Deductibles and Limits

A deductible is the amount you pay out of pocket before your insurance coverage begins. A higher deductible means a lower premium but also more personal risk. Ideally, choose a deductible that you can afford in the event of an accident. Also, always check the payout limits. Some policies may have hidden limits on certain categories of losses, so it’s important to consider this in advance.

What Should You Consider if You Have a Car Loan or Lease?

If you lease or purchase a car on credit, the bank or leasing company may require certain types of insurance, including comprehensive coverage. Gap insurance, which covers the difference between the market value of the car and the balance of the loan, is fairly common. Gap insurance protects you from financial loss in the event of a total loss of the car. To avoid penalties and payment problems, it is important to comply with the lender’s or leasing company’s requirements.

The Legal Aspects of Disputes with Insurance Companies

Even if you choose a quality auto insurance policy, disputes with the insurance company can arise, especially in the event of a serious accident or large payout. Insurance companies may:

• Delay payouts
• Underestimate the amount of reimbursement
• Deny coverage altogether

In such cases, it is recommended that you immediately consult an attorney who specializes in insurance law. California has a “good faith” insurance principle that requires insurers to act honestly and in the best interest of their policyholders. If an insurance company violates this principle, a bad faith claim can be filed. In such situations, the injured person can claim full compensation and additional damages. To prove bad faith, it is important to gather documents and evidence showing the insurance company’s behavior.

The Impact of Credit History on Auto Insurance Rates

In California, the use of credit history to calculate insurance rates is restricted. However, insurance companies sometimes use financial data to assess risk. Therefore, it is important to maintain financial discipline by:

• Paying bills on time
• Having no debts
• Having a stable income

These will all help lower the cost of the policy.

Temporary Policies and Short-Term Coverage

Some drivers are interested in purchasing short-term insurance, especially if they:

• Renting an automobile
• Have a temporary residence in California
• Seasonal auto use

These policies do exist, but it is important to ensure they meet the minimum legal requirements and cover potential risks.

How Can You Avoid Having Your Payment Denied?

To minimize the probability of an insurance claim being denied, you should:

• Always provide accurate information when applying for a policy
• Keep all documents related to the accident
• Notify the insurance company immediately after an accident occurs
• Do not sign any documents without consulting a lawyer first

Consulting to a lawyer in a timely manner can prevent financial losses and shorten the dispute settlement period.

How KAASS LAW Can Help?

Having legal support for auto insurance is essential to protecting your rights and financial interests. At KAASS LAW our experienced lawyers can help you:

• Understand the ins and outs of insurance policies and find the best coverage for you
• Evaluate the adequacy of liability limits based on your lifestyle and finances
• Protect your interests when insurance payments are denied or delayed
• Prepare and file claims against the insurance company in the event of unfair handling of your claims
• Represent you in court and during negotiations to achieve the most favorable outcome possible

We understand that auto insurance issues can be complex and confusing. Therefore, the KAASS LAW team is always ready to provide professional advice.

Conclusion

Selecting the best auto insurance requires considering many factors. It is important not only to meet the minimum legal requirements but also to protect your assets. If you are unsure which coverage is right for you, it is highly recommended that you consult with an experienced attorney. Contact us if you need legal advice regarding auto insurance, liability, or car accidents. Call 844-522-7752 for a free consultation, our experienced lawyers can help you choose the right strategy.