Do I need comprehensive, or liability auto insurance for a car that is high mileage, and I do not have a car payment?

Do Compare!People that own and drive a vehicle in California are required by law to carry liability insurance to compensate for injury or damage to another party or another party’s property that was a result of their own negligence. The law does not require you to protect yourself from either personal injury or property damage to your own vehicle.

California auto insurance minimum liability coverage is required whether you own your car outright or you are making payments to a finance company. If you have a high mileage car that is paid off, you do not have to carry comprehensive coverage, but you still are required to carry the state minimum liability coverage of 15/30/5.

A minimum 15/30/5 California car insurance policy will pay up to $15,000 to a single injured party or up to $30,000 for all occupants injured as a result of an accident you were found to have caused. It will also pay up to $5,000 in compensation for any property damage you may have caused as a result of the accident.

Comprehensive insurance coverage pays out if your car is stolen, damaged by vandalism, flying road debris, acts of nature or any other incidents that are not the result of a collision. Whether you should carry this type of coverage depends largely on the book value of your vehicle.

If you have a 20-year-old car worth $1,000 and it gets stolen, the best you could hope for is a check for $1,000 from the insurance company. If it costs you $200 extra to carry this coverage, you may decide it is better to assume the risk than pay the extra premium. Others, who are very risk averse may choose to pay the extra premium and have some more peace of mind.

What are the laws concerning auto insurance in California?

Abide To The Auto Insurance RulesPeople who live in the state of California and want to drive are required to carry a certain minimum amount of California auto insurance. Like most of the country, California operates under a tort system, under which drivers are held responsible for bodily injury or property damage that they cause while operating a motor vehicle.

California requires anyone that operates a motor vehicle to be financially responsible for any bodily injury or property damage that may result from an accident that was determined to be their fault. Most people opt to purchase California car insurance, which will protect them in the event of an accident.

Minimum California Auto Insurance Requirements (15/30/5)

With this minimum amount of liability coverage, your insurance company will pay up to $15,000 for injuries sustained by an individual that suffers bodily injury as a result of your actions while driving a vehicle and up to $30,000 for all persons injured in a single accident that you were found to have caused. It will also pay out up to $5,000 for any property damage that was a result of the accident.

Other Ways to Insure

California has several other ways to prove financial responsibility and be allowed to legally drive a car. In lieu of a California car insurance policy, one may make a $35,000 cash deposit with the DMV and self-insure against a possible at-fault accident. Fleet owners of 25 or more vehicles may choose to set up a fund on their own instead of buying traditional California auto insurance. Upon sufficient proof that the fleet owner has set aside sufficient funds, the DMV will issue a certificate of self-insurance. Finally, an individual can obtain a $35,000 surety bond from a licensed California insurance company.

Fortifying Your Home Against Disaster can Lower Your Premiums

Preventing DisasterNatural disasters are one of the primary reasons that people carry homeowners insurance. But as a direct result of the high cost of living, many people opt to reduce their amount of coverage in order to make ends meet, never realizing the consequences of underinsurance until the unthinkable happens. Experts frequently remind us to compare homeowners insurance to secure the best possible deals, but there are additional steps you can take to both decrease your premiums and better protect yourself from disasters.

Fortifying your home is one of the most effective methods of achieving this. Just as installing a security system will lower your premiums because you’ve just decreased the likelihood of anyone breaking into your home and stealing everything you own, making home improvements that make it more disaster resistant can also yield some insurance premium savings. Reinforcing your roof and installing storm shutters in your home are just a couple of examples of how you can accomplish this, but be sure to talk to your insurance agent to determine what upgrades will bring you the biggest dicounts.

Remember to price out coverage at least once a year by getting homeowner insurance quotes from various providers. Doing this, in addition to making modifications that will strengthen your home against natural disasters, will go far in ensuring the lowest possible insurance premiums for the highest amount of insurance coverage.

Top Seven Costly Insurance Mistakes Made by Texas Consumers

Texas Consumers - Beware!Too often Texas consumers get in a hurry when it comes to purchasing auto and home insurance. The result can be any one or more of these top seven mistakes:

1. Getting too little insurance.

If you don’t have enough coverage you may end up paying more out of pocket than if you had a slightly better policy.

2. Getting too much insurance.

Determine the resale value of your car based on its model year age as well as it’s condition. Depending on these findings, as well as your ability to purchase another car should yours become totaled in a wreck, you may be able to get by with just liability.

3. Not comparison shopping.

Auto and home insurance rates do vary among companies. Take the time to get several quotes.

4. Not “bundling”.

You can “bundle” phone, cable, and internet services and you can also do the same thing with home and auto insurance. If possible, get both policies with the same company.

5. Not taking advantage of each and every discount the insurance company offers.

Insurance companies offer a lot of discounts; make sure you’re getting every one that you’re entitled to.

6. Not re-examining your policy every few years.

Things such as your age, not having an under-25 driver on your insurance, and good driving records can all add up to savings.

7. Not having insurance at all.

In many states, it’s now mandatory to have auto insurance and failure to do so can subject you to severe civil and criminal penalties. You may not be required to have home insurance, but how will you replace things lost due to fire, theft, or damage?

Different Quotes for Different Folks: Why It Pays to Shop Around for Car Insurance

Different CoveragesCar insurance can sometimes put a crimp in your plans for owning the car of your dreams, especially if that car is considered “high risk” by the insurance company. But this isn’t the result of a bureaucracy that looks down on you for having a cool car—there’s actually a rationale behind charging certain drivers more because of the vehicle they drive.

Fact #1
Cool cars are stolen more often. Well, let’s qualify that. Not all cool cars are stolen at the same level of frequency, and that’s got little to do with differing tastes. Basically, there are certain makes and models of vehicles that are at a higher risk for being stolen—and the types vary from year to year. Whether or not your car is on that list could significantly impact your insurance rates.

Fact #2
Cost is a major concern. If you drive an expensive sports car that will cost a lot to repair, it’s natural that the insurance company is going to take that into consideration when they’re doing the math. Therefore it stands to reason that you’ll be charged far less to insure an inexpensive car than you will be to insure a sweet ride.

Fact #3
Insurance companies base their rates on their experiences with certain vehicles. This fact only serves to emphasize the importance of shopping around for car insurance. What might cost you dearly at one company could cost you far less at another—and you’ll never know for certain if you don’t shop and compare.