Why To Insure Your New Vehicle In California

Why to get your new vehicle insured?

Automobile insurance aims at protecting consumers by compensating for financial loses that result from road side fatalities. Cars have so far been an integral part of the automobile industry and the number of road accidents has increased through the years. If you feel that you do not need to get your vehicle insured, know that thousands of accidents that take place every year in California alone. These accidents have led to tremendous loss of property and have caused physical damage along with financial pressure to the car owners. However, financial tension can be relived to an extent by using car insurance services. Car Insurance companies protect their consumers by covering the cost of damage that happens to vehicle and protecting the owner from huge financial losses.

Car Insurance in California

Assembly Bill for a personal auto insurance policy was passed on January 1st 2005 in California. Whether it's a small roadside bang up or a major bump, having insurance in advance always helps to reduce the financial burden an accident brings in. Here are some interesting facts for you:

– Every insurance company is supposed to pay a minimum amount to its consumers in case of any accident or injury.
– In California, minimum limits of applicable insurance are $ 15,000 for death or harm of one whereas $ 30,000 in an accident.
– It is mandatory for insurance agents to meet their clients within required period of time which can extend up to 15 days.
– There were around 22,083,049 registered automobiles in the State of California in 2011, which in itself indicates the frequency of road traffic accidents.

What to do after an accident?

As soon as the person suffers an accident, they are supposed to inform the insurance company with the details. It is wise to make the insurance company known for losses as early as possible as they always prefer to inspect the damaged vehicle and property. After that, when insurance company pays for the repair of the same vehicle, it's the consumers' duty to sign up and authorize the workshop for its repair.

Car insurance has proved to be the best savior out of the losses that follow a major accident. The term 'accidents' does not only include collisions; insurance companies also cover vehicles that get damaged by theft, fire, malicious destruction, weather, or other types of comprehensive losses.

Driving without insurance – a safe bet?

Since 2005, driving without insurance has been regarded to be a serious offence in California. Inability to show up with proof of insurance when requested by any government officer leads to charge on that person that can be either in form of fine or in form of suspended license. The claim that one gets from insurance usually depends on the type of company the person has applied in. In most of the cases, insurance companies are said to have paid the minimum amount that is necessary for vehicle repair or even the actual cash value of the vehicle (ACV). Department of Insurance of California maintains an informative website where it keeps all the names of insurance companies operating in California. The Department has its own consumer helpline number which works from 8 am to 5pm. Legal responsibility of insurance sometimes does not cover the policy holder if they maneuver any vehicles other than their own, although, in some cases, where the policy holder does not have a vehicle of his own, he is liable for relaxation in policy.