Does California Liability Auto Insurance Covers Car Repairs?
Reader’s Question:
Hi there. I got in a bit of trouble last night and bumped the car into a tree. Will my automobile insurance pay for the repairs to my car? How can I ask them to pay? I have liability insurance.
George
Long Beach, CA
Hi George, I hope you are all right after your accident. First of all, you will need to look at your automobile insurance papers or call your agent in California to find out if you are covered for the damage to your car. If you bought just the minimum automobile insurance required by the state, I’m afraid you might not have the right coverage as most states only require liability insurance which will pay for damages to other people or property.
In order for your insurance company to pay for the damages to your vehicle, you must have first signed up for collision insurance. However, they will not pay for the full amount of the bill. You will still have to cough up your share of the deductibles before they will pay for their share of the bill. Before you file a claim, first evaluate whether you actually need to. If the damage is minimal, and you can afford to pay for it, it may be better to take care of the damages yourself. If you do file a claim, know that this will be placed into your record and may affect your automobile insurance rates in the future. If you still wish to proceed, I suggest you ask your agent about your automobile insurance companies’ process for filing a claim. This will most likely involve some paperwork where you will be asked for details of the accident.
Getting a Cheaper Rate on New Automobile Insurance
Unless you’re going to buy a house or a business, the car that you buy is probably going to be the biggest buy you make at the moment, and the automobile insurance rates should have a huge effect on which car you end up choosing to buy. Instead of drowning yourself in car lot deals, look at the aspects of the car that would affect your insurance rate. Is it safe? Does it get stolen a lot? Does it have anti theft devices? How much do its parts cost?
A lot of people go to buy cars, and end up paying way too much. Many times they just need a car and feel they have no choice, but anytime you buy a vehicle you should draw up a budget so you know what you will be able to pay each month, and that budget should include your automobile insurance premium. If you don’t have enough money for a car with a monthly payment of five hundred dollars and a insurance monthly premium of one hundred, then get a different car.
You should shop for your car the same way you shop for your insurance–by comparing prices, features, and makes and models to make sure you get the best deal from the best car dealership. Having livable interest rates on your car loan is also very important.
- How much can I spend?
You need to tally up all of the monthly expenses that will come along with buying a car. If, say, you get a Ford F-150, then not only will you have to a lot for gas each month, but you will also have to pay a high insurance rate because this truck is one of the most stolen cars nationwide. Think about repairs, oil changes, gas costs, car notes, and your insurance premiums when drawing up your budget.
- Who has the best deal?
Just as you should find a car insurance company that has the best discounts, you should also look for the car dealership which will give you the best rebates and other incentives. Remember to take everything together, though, because sometimes the salespeople will pay back the rebate in another way, such as getting you ridiculously high interest rates.
- What are you trading in?
Most people trade in their old car instead of paying a down payment, or they do both. If you do this, though, you have to make sure you are getting the right credit for your trade in. Check your trade in vehicle’s value and see if the car dealership’s price matches that. Remember that there is a difference between the value when traded in to a dealership, and the value when you sell it to an individual.
- Why not drive it first?
Never bypass the test drive, even if you feel sure of the car you want. You might find that you don’t like the feel of the car you had originally chosen, and might want to consider a different one.
- Why be crazy?
Take your time when buying a car, just as you would when buying a insurance policy. Don’t freak out and buy something just because it’s awesome. Do your research.
- How not to limit yourself?
You don’t have to get your car financing through a car dealership. As a matter of fact, many of the best deals can be found through online financiers, and you can get approved for a loan and take your approval straight to the dealership.
- Where are the features?
Getting, say, electronic stability control might be slightly more expensive, but over the years it will save you a lot more money than you originally spent on your automobile insurance premium. If they offer it, get as many safety and anti theft devices as you can.
Loading ...