California law requires you to buy a minimum amount of liability insurance coverage for your car. You probably need more liability insurance than the state requires because an accident will cost you much more than the minimum limits. You could be found responsible for the accident, then you are legally liable for any bills that result from the accident. If these bills are higher than the amount of coverage you have, you have to pay the difference out of your pocket. This could be thousands or tens of thousands of dollars!
An experienced insurance broker or agent, like ERM, can help you determine how much insurance you will need to protect yourself financially. You might want to also think about getting an umbrella or excess liability policy in addition to your car insurance. These policies pay any costs above and beyond what your existing insurance covers.
Umbrella or excess liability policies generally cost about $200 to $300 per year for a million dollars in coverage. If you have your homeowners and car insurance with the same company, check out the cost of coverage with this company first. If your policies are with two different insurance companies, it may be easier to buy it from your auto insurance company.
Collision and comprehensive coverage are also important to have. These coverages will pay for the market value of replacing or fixing your car if you are in an accident. Again, this could save you thousands of dollars!
The last important thing to consider when purchasing car insurance is your deductible—the amount of money you pay before the insurance company reimburses you. $500 or $1,000 are common deductibles. The higher your deductible, the lower your monthly insurance premium is.
If you have any questions about car insurance in California, ERM Insurance Brokers is located in Orange County and has experts available to help you. Call (949) 222-0444.