Insurance is a subject that many people do not completely understand. If you own a home in California and drive a car you probably know that you need to carry California homeowner insurance and California auto insurance. But, do you know what kind of insurance to carry and how much you should carry?
The two biggest mistakes a California resident can make when it comes to insurance are not buying enough insurance and buying the wrong type of insurance. If someone tells you that insurance is insurance and all companies are basically the same, you should absolutely not listen to them. When shopping for automobile or homeowners insurance in California try to avoid the following costly mistakes.
Not Enough Insurance
Without doubt, the number one problem California residents face when it comes to any type of insurance is not having an adequate amount of coverage. Insurance is designed to help you get back to the level you were at before a loss occurred. It might be a house that burned to the ground or a car that was totaled in a bad accident. Family members and beneficiaries will be well taken care of if you had the foresight to buy enough life insurance.
Instead of trying to save a few dollars by buying only the minimum amount of California car insurance or California homeowner insurance, you can be much better protected with more coverage for not that much higher a monthly premium.
What Type of Insurance to Buy
When it comes to California auto insurance, you need much more than the state mandated 15/30/5 coverage. In today’s world, an auto accident can easily rack up $100,000 or more of bills. To protect yourself and your assets, a minimum of 100/300/100 coverage should be carried. Many people with more substantial estates should have even higher coverage.
In addition to liability coverage, most vehicles should also have comprehensive and collision, especially if the are worth more than a few thousand dollars.
Homeowners should also buy more than the minimum amounts required by law to protect themselves and their homes from lawsuits filed by anyone that may have been hurt on your property or any type of damage to your house.