Basic Vs Standard
California law mandates that you show financial responsibility for any vehicle that you own, in case of injury to other people or damage to their property. Most people show financial responsibility by buying auto liability insurance. The minimum amount of coverage required is bodily injury liability insurance of $15,000 per person, with a total of $30,000 in coverage per accident for injuries sustained by others, and $5,000 in property damage liability insurance for physical damage done to other property, such as another driver's vehicle. Policies that only meet these minimum coverage limits are typically known as basic liability-only policies. Since January 1, 1997, California motorists have been required to provide proof of insurance at the time of registration or when stopped by a peace officer. Failure to provide proof of insurance may result in fines, suspension of driver license, and your vehicle could be impounded.

In addition to offering basic liability-only policies that meet the requirements of this law, companies also offer policies that contain higher liability limits, comprehensive and collision (physical damage) coverage, uninsured and underinsured motorist coverage, medical payments, and rental car reimbursement coverage. These policies are known as standard coverage.

CDI's Role
Annually, the Data Analytics and Reporting division (DAR) of the California Department of Insurance (CDI) conducts a survey of premiums from insurers offering Automobile Insurance in California. Due to the great diversity of driving characteristics, policy limits, locations, coverage available, and the number of companies writing automobile insurance, it is not possible to publish a comparison for every conceivable risk. Therefore, DAR developed a set of specific hypothetical risks for various ZIP codes throughout the State of California. ZIP codes were selected based on the number of registered vehicles in various regions throughout the state, as provided by the California Department of Motor Vehicles. The insurers were then asked to provide us with their annual premiums for these hypothetical risks.

Information On Auto Insurance
An automobile insurance policy is a contract that helps pay for certain types of financial losses or obligations resulting from the use or ownership of an automobile. To obtain an insurance policy, you pay a specified amount of money called a premium. In return for the premium paid, the insurance company agrees to pay certain expenses and legal liabilities you may incur depending on the terms of the insurance policy.

When you purchase insurance, it is important to remember to shop for insurance in the same way that you shop for any other consumer product. Make sure to compare prices, features, and company performance. Also, don't ask for "the best coverage." Someone may give you what they think you need, rather than what you actually need. It is always wise to shop around to determine the best product for you.

Automobile Insurance Information Guide