Auto Insurance Claim Filing in California – What To Do Next?
If you’ve gone and decided to make a claim for auto insurance in California, then you should be ready for the consequences. The second you call to report a car insurance accident, even if you do not end up filing a claim for it, that information goes straight to your file, and from your file it will go onto your CLUE report. This report, or something like it, is ordered by any company for auto insurance in California that you are considering getting a policy with, and the information will be used to determine whether or not they want to insure you, and how much they will charge if they decide that they will.
According to State Farm, all the companies for auto insurance in California are doing is trying to fulfill their obligation to you. You pay them every month, or every six months, or every year, or whatever it is, and so they are obligated to pay for your damages if you get into an accident. With their company, getting into an accident, even an at fault one, does not guarantee you an instant raise in your premium for auto insurance premium. Some people will have an accident forgiveness waiver, and others are looked at individually before a premium raise is given for the circumstances.
If you’ve been a good, long time customer, you might not see your rates raise even if you don’t have an accident forgiveness waiver, which are usually only for the first accident. Some things that State Farm and other companies for auto insurance in California consider are whether or not anyone was hurt, or if the damages were significant enough to warrant a huge payout.
I Want Cheaper California Automobile Insurance!
I used to think of my California automobile insurance premium bill as an expendable sort of thing. That is to say, when I was broke and paying it would leave me with about twenty bucks left over, I chose not to pay it. A lot of people think this way, especially people who have never gotten into a car accident or been pulled over by a police officer. This is why I felt that way as well, but as you can see, two no insurance tickets later, it didn’t do me any good. However, there’s more bad to it than just the tickets.
I’m lucky, because after I had let my insurance lapse a few times, my car insurance company still let me renew my policy and didn’t charge me anymore. However, most insurance companies aren’t like this, and missing a payment will not only end you with a canceled policy, but you might also find that in the future car insurance companies are somewhat reluctant to take you on as a policy holder, and if they do they might charge you more. The reason for this is because they find that people who let their insurance lapse are not only unreliable customers, but have a higher rate of claim filings.
California automobile insurance law will say when your car insurance policy can and cannot be dropped. Most of the time, companies only have strict reasons for why they may cancel or choose not to renew your policy. In some cases, if you don’t have the payment in by the date it’s due, your policy will be canceled, and sticking it in the mailbox on that date doesn’t count. Usually, though, you will be able to have a grace period of about fifteen days after you fail to make a payment during which you can continue your policy by making the payment.
Should You Lie To Your California Car Insurance Agent For a Better Rate?
Reader question:
Is it okay to lie about certain things in order to get a good auto insurance quote in California?
Mary
Thank you for your question, Mary.
Like they say, if you tell a white lie, it will turn into another white lie, and before you know it down the line, you will have an entire system of lies that you will need to control and remember. It’s never an idea to lie, especially when money is involved. While it is true that many people get away with it, many more get caught, and when you get caught out telling a lie it often ends up costing you more than you saved.
- Represent, don’t misrepresent.
Normally, car insurance companies have sixty days after they have given you your CA auto insurance quote and you have bought a policy in which they will be able to cancel your policy without any problems. This period gives them to research your insurance background, look at your CLUE report, credit history, and so on so that they can make sure that you are someone they want to insure.
However, if you misrepresent your information, then you can have your policy canceled anytime. For example, if you lie about a previous insurance cancellation, then if your car insurance company that had canceled you does not report it right away, your new car insurance company might not find out about this cancellation during the sixty days that they during which they are looking for your information. After the initial sixty days, though, car insurance companies will usually look at your information again after they have given you your six month CA auto insurance quote, so if they find it then you might not have your policy renewed because of the bad information.
At times, lying to your car insurance company can get you in even more trouble. For example, while members of your household are covered on your policy, if your teenager is driving your car regulalry and you hadn’t added him to the policy to get a higher CA auto insurance quote, then if he gets into a car accident you might have your claim denied.
Cheers,
Fashun Guadarrama.
Low Cost California Collision Auto Insurance Coverage
Reader question:
What is low cost California auto insurance collision coverage?
Mandy
Thanks for your question, Mandy.
Many people only buy the minimal low cost California auto insurance coverage for their vehicle, because they think that they are fairly good drivers and would never get into a car insurance accident, at least not one that is their fault. Any accident, they assume, that they would get into would be covered by the other driver’s liability coverage. However, there are many cases where, despite how you feel about your own driving skills, you are required to add collision coverage to your low cost California auto insurance policy.
The main reason for which you would do this is when you are buying a brand new car. Most loan providers would require that you have collision coverage on your car until you have finished paying them for it, so you will have to add it to your low cost California auto insurance policy.
In some cases, they may not require it, but it is still a good idea to get it. If you are buying a new car, usually while you are paying it off you will at some point owe more for your car than it is actually worth. In these cases, should you total your car and you only have collision coverage, you will only get paid for the worth of your car, leaving you with several thousand dollars of loans to pay off. In order to avoid this, you must get gap insurance. But in order to get gap insurance, you have to have collision on your low cost California auto insurance policy.
Collision covers damage in an accident in which you are at fault, be it with another driver or just you backing into your second car in your driveway. Unlike liability coverage, collision comes with a deductible from your low cost California auto insurance policy. If you get into a car accident, then before you can get the check from your insurance company, you have to pay the deductible. I suggest that you make that deductible at least five hundred dollars in order to get low cost California auto insurance rates.
But how do you know if you need collision coverage, if it isn’t required? I would say that if your vehicle is worth less than one grand, don’t even think about it. It would just be a waste of money, even if you totaled your car. However, if you have a relatively new vehicle and you don’t have a stellar driving history, then I would seriously think about adding collision to my low cost California auto insurance coverage.
Cheers,
Fashun Guadarrama.
What Is Tort Law?
Reader question:
What is tort law?
Abram
Thank you for asking, Abram.
Tort is related to lawsuits in the legal system, and when it comes to cheap California car insurance there are two different levels of tort that you can subscribe to. If you choose one level, you will get cheap California car insurance rates, and if you choose the higher level, then you will have to pay a little more.
The difference between the two choices is defined by when you are allowed to sue after you have gotten into a car accident which was not your fault.
- Full tort.
Cheap California car insurance will be a little more difficult to get with the full tort option. This option allows you allows you to sue for pain and suffering after you are injured in an accident which is the fault of the other driver. This option is the one that I would suggest, because if you don’t choose it, and you should end up with some very bad injury with no recourse, then the other driver’s car insurance often won’t take care of things such as wage loss or other types of pain and suffering.
- Limited tort.
This is the cheap California car insurance tort, but it might cost you more in the long run. Not in premium payments, but in losses if you get into a car accident. This option reduces your ability to file a lawsuit to very rare circumstances, such as:
- If your injury from the collision is permanent
- If someone dies
- If you are permanently disfigured
- If the other driver was DUI
- If the other driver comes from another state
Whether you choose full or limited tort is obviously your decision, and if you happen to never get into a serious accident, then you’ll probably wish you had gone with limited tort. However, many people get into a bad accident at least once in their lives, so it doesn’t hurt to be prepared.
Cheers,
Fashun Guadarrama.
Types of California Car Insurance – Which is Best?
There are several types of car insurance that you will need in California, an at-fault, tort car insurance law state. While not all are necessary, in order to abide by California car insurance law, you must have at least the three basic types of liability coverage, which can be bought either at the state minimum or at a number above this. California car insurance law requires you to have a minimum of five thousand dollars of property damage liability for when you get into an at fault accident. It isn’t much, and most California car insurance companies suggest that you get at least fifty thousand to prevent problems with being underinsured.
What is California car insurance property damage liability?
When you get to into a car accident that is caused by your own negligence or intent, most of the time this accident will involve someone else. Unless you get into the accident on your own driveway, your California car insurance company will probably have to pay out a property damage liability claim. What this type of coverage takes care of is the damage done to whatever you hit–be it a house, a mailbox, or even, most commonly, another car entirely. There is a separate type of coverage for injuries to another person.
What property damage California car insurance coverage does not take care of is any damage inflicted on your vehicle, even if you crash your vehicle into some part of your own property, such as another vehicle of yours. If this happens, you will have to depend on collision car insurance.
Do You Have Enough California Car Insurance Coverage?
There are a lot of people on the road who either don’t have insurance at all (over five million in California) or who don’t have enough insurance to cover the injuries of the other driver should their negligence lead to a car accident. The limits for required California car insurance are fairly low, so it is important, taking these two things in mind, to consider adding on a couple of extra types of car insurance coverage, although it may raise your California car insurance quote.
- Underinsured motorist coverage.
This is for if the other driver’s insurance does not cover damage in the case of an accident. For example, if the damages caused to you and your vehicle are in a total of $40,000, but the insured only has $35,000 of car insurance coverage, then your underinsured motorist coverage will kick in to take care of the rest.
There are two different ways that this will work out. In some cases, the underinsured driver’s coverage amount will be added together with your own underinsured motorist coverage, and in other cases it will be subtracted.
- Uninsured motorist coverage.
Whenever you go to get your car insurance policy, the company must inquire whether or not you want to get uninsured motorist coverage. If you choose not to get this type of coverage, then you have to sign a waiver stating that you have declined, and then they can give you your California car insurance quote.
Uninsured motorist coverage takes care of your damages when get into an accident in which the other person does not have any car insurance.
Optional California Car Insurance Coverage You Might Want To Have?
In addition to the other types of car insurance coverage already listed, your California car insurance company should also offer other types of coverage. These types of coverage are not related to paying for damages or replacing stolen objects, or even for helping with injuries, but instead are mostly focused on making your claims and driving experience better and easier for you. If your California car insurance company does not offer these types of coverage, you might want to think about going with someone else.
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Rental reimbursement coverage.
This is an extremely useful type of coverage that practically every California car insurance company will offer. It provides for you to rent a vehicle while your own is getting repaired or replaced, usually for up to thirty days. The rental will be billed to your California car insurance company, and all you will have to pay is the security deposit, which will be returned to you at the same time as you return the car.
This insurance is a no brainer if you consider the regular costs of renting a car. The amount that you will pay on your California car insurance company policy for a year will still be less than what you would have paid for a rental car for only one day.
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Roadside assistance.
Towing a vehicle costs a lot of money. I had never had a car towed until recently when I bought a new car, and we needed our broken down trade in towed to the dealership. I didn’t think it would cost more than a hundred dollars, but as it turned out it would cost over $300 to tow this vehicle to a location only forty minutes away. This is why rosadside assistance is so useful. If you break down on the side of the road or get into a car accident, then your California car insurance company will cover the costs.
California Injury Liability Insurance
Reader question:
What is injury liability insurance?
Miranda
Thank you for asking, Miranda.
There are two types of California auto insurance injury liability. One is for the death or injury of a single person, and the other extends the first coverage to take care of the deaths or injuries of multiple people. It isn’t necessary to distinguish them when you go to buy your California auto insurance, though, as both are required. No California auto insurance company will sale you less than the required amount, which is:
- $15,000 for one person
- $30,000 for more than one
However, most California auto insurance companies will suggest a higher level of coverage, and it would be advisable to take their suggestion to mind, considering how much medical bills tend to be. They suggest you get at least $100,000 of liability for one person, and another $300,000 for multiple people.
This type of California auto insurance coverage is the key kind of liability. If you should cause a car accident through your negligence, then the person who is injured in that accident can sue, which is why you need high levels of this type of insurance. If the other driver sues for pain and suffering, or for wages they’ve lost, then you could be out of a lot of money if you don’t have liability California auto insurance coverage.
When you get into an accident, the bodily injury California auto insurance liability applies in a strange way. The first limit, for a single person, is what will apply to each person, but the second is for the entire accident. So, if you get into a car accident and one of the injured’s medical bills come out to $20,000, but you only have the required $15,000 per person California auto insurance coverage, then you will have to pay the difference.
Cheers,
Fashun Guadarrama.
Understanding California Car Insurance Rules and Terminology
When you’re buying your California car insurance online, you will usually come across a lot more car insurance terms than you would if you were buying them in an office or with an agent over the phone. The good thing about having an agent is that they will be there to explain rules and terms to you. However, more and more people are realizing that they don’t need an agent, and can in fact get all of their car insurance online. As a result, more confusion can happen because the only person there to explain car insurance terms to you is you yourself. I’ve made a list of common terms that you will encounter while buying your car insurance online. Hopefully it will make the process much easier.
- Actual cash value: This is the amount that your car is worth, after depreciation, and is what you receive after your vehicle is totaled in a car accident.
- Benefit: this is what you get when you file a claim, paid by the car insurance online company.
- Bodily injury liability: this is for if you get into an accident that you cause, to take care of the medical coverage for the injured people in the other vehicle.
- Claim: when you get into a car accident and you ask to get money for your coverage based on damages.
- Collision: This is coverage for whenever you get into an at fault accident to cover the damages on your own property.
- Comprehensive: coverage for things such as vandalism, theft, and damages due to natural disaster.
- Deductible: the part of the expenses that you have to pay before your car insurance coverage kicks in.
- Exclusion: something that is not covered by the CA car insurance online policy.
- Full coverage: liability plus comprehensive and collision.
- Indemnity: a predetermined sum paid for loss.
- Limits: the highest the car insurance online company will pay for losses.
- No fault insurance: car insurance claims dealt with in each person’s own company. No blame involved or required.
- Personal injury protection: covers medical expenses for the at fault driver, including long term and wage loss for serious injuries.
- SR22 form that must be filed for three years or more as proof of insurance after DUI.
- Tort: when you sue someone for damages after a car insurance accident.
- Uninsured motorist coverage: when you get into an accident with an uninsured or underinsured motorist and they are at fault, then you will need this coverage for your own damages.
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