AUTO INSURANCE
why I should having a car insurance?
It’s the law! The number one reason you must have car insurance is that it is a requirement for even having a vehicle registered in California. Law require car insurance to minimize the overall impact of property damage costs and to reduce the likelihood of huge accident-related medical bills going unpaid. Insurance companies step up to absorb these costs in the event that damage or injury does occur – they are able to do so because you pay your premiums.
If you are unconvinced that you need to do something just because the law requires it, think about the true financial costs of breaking the law – if you get a ticket for not carrying insurance, that is a couple hundred dollars lost. That money could have paid for part of your premium. If you get another ticket, you could lose your license and even have your vehicle impounded. The costs of paying tickets, regaining your license, and getting your car out of impound will definitely amount to far more than paying a year’s insurance premium. Not to mention, the time lost at work because of not having a car could create even more financial woes and familial inconveniences.
Cover your assets and your family first.
California requires bodily-injury liability insurance to cover medical treatment, rehabilitation and funeral costs incurred by your own passengers, other drivers, their passengers and even injured pedestrians. Other costs covered include lawyers’ fees and non-monetary losses related to pain and suffering.
State minimum-coverage limits are too low to protect the assets of most motorists. Unless your income and assets are minimal, buy at least $100,000 per person, $300,000 per accident.
Property-damage liability covers repair or replacement of other people’s cars and property. State minimum limits average about $15,000. With the average cost of a new car at $25,000, however, buy at least $30,000 in coverage.
When a hit-and-run driver, or someone who’s inadequately insured, strikes your car, uninsured-motorist and under insured-motorist coverage pays for the medical, rehabilitation, funeral, and pain-and-suffering costs of the victims in your car. This crucial coverage also insures your household members as pedestrians. Buy this coverage at the same limits as your bodily-injury liability coverage.
Personal-injury protection (PIP), often known as “no-fault,” covers medical, rehabilitation and funeral costs for household members, as well as some lost wages and in-home care. Unless your health and disability coverage are slight, buy the minimum required.
Collision pays to repair or replace your car after an accident. If you have bought a new car with a loan, you’ll be required to buy this coverage. Comprehensive pays if your car or its contents are stolen, or if your car is damaged by fire, water or other perils. Lenders will also require this coverage. For both, you’ll have to choose a deductible: a dollar amount you fork over to the repair shop before the insurer antes up. The higher the deductible you carry, the more you’ll save. Try to carry a deductible of at least $500 on each coverage. For cars worth less than $5,000, comprehensive and collision probably aren’t worthwhile. Over time, the premiums you’ll fork over will probably exceed the payout, even if your car is totaled. Plus, in an accident that isn’t your fault, you can figure that the other driver’s insurance will cover your car.
Consult an insurance ximma representative if you need more information.