California State Laws Regarding Car Insurance

When shopping for personal car insurance in San Diego, it’s important to be familiar with California state laws. These laws are in place to protect drivers on the road as well as insurance companies. One law of particular interest when seeking cheaper car insurance rates is the Assembly Bill (AB) 2677, which was passed in California by state legislature and became effective in January 2005. This bill requires every provider that sells private passenger vehicle policies to provide a cost estimate of the lowest priced policy at the limits requested by the consumer. These cost estimates must be available either through a toll free number or a website.

In a nutshell, AB 2677 gives you (the consumer) the ability to quickly and easily compare auto insurance rates among various providers without going into too much detail with your personal information. You can call or visit a website from the comfort of your home without physically visiting each provider’s office, and get fairly accurate quotes based on the information you provide. Also according to the bill, the same information must be provided to the California Department of Insurance.

California’s statutory minimum limits of liability are $15,000 per person injured or $30,000 total per accident for Bodily Injury Liability. For Property Damage Liability, the total limit is $5,000. You do have options to assume financial responsibility, which include obtaining coverage through a policy, paying a cash deposit of $35,000 to the San Diego DMV (Department of Motor Vehicles), obtaining a certificate of self-insurance if you have a fleet of 25 or more vehicles, and obtaining a surety bond of $35,000 from a licensed provider.

Comparison Tips for San Diego Residents

When comparing car insurance rates among San Diego, CA providers, you’ll want to ask yourself, “How much coverage do I really need?” Compare apples with apples among 10 to 50 companies to find the right fit. In some cases, you’ll need only the minimum liability required. You might determine that only the minimum requirement is needed if your car is older with little value and if it would cost more for the collision insurance than the vehicle is actually worth. If you still owe money to the bank for your automobile, your lender may require you to keep some form of collision coverage.

If you find that you live in a high risk area and want to cover all your bases, you might opt for a comprehensive plan. San Diego is prone to wild fires, particularly during the fall season when tree leaves have dried out. There’s always the possibility of earthquakes if you live in San Diego or anywhere in California. Comprehensive insurance covers these types of damages to your vehicle, along with theft, animal collisions, hail/wind damage, vandalism, etc.

Do an auto insurance quote comparison online for the best results. Maximize your savings by researching possible discounts with each company and by upping your deductible. A simple comparison can potentially save big money in years to come. As a San Diego resident, use the local competition among providers to your advantage and get the cheapest car insurance rate possible!