Get the cheapest insurance possible? Regardless if you live in Fullerton
CA, or Garden Grove, you need the lowest down payment.
This is true if you are looking for liability car insurance or a non owners
You may have questions surrounding your auto policy. This is normal and
happens on a daily basis.
Compiled in this quick read, are the most common questions.
Answers to these questions will help you save money.
It will also help you through the general auto insurance process.
Understanding the different components and discount options
offered on your vehicle policy, is the first step.
This will help to lower your rate, without compromising coverage.
So, let’s begin with why you actually need this basic coverage requirement.
More policy savings. We are going to discuss two different generations by age.
The first category is if you are a senior citizen.
If you are a citizen, check with your local DMV to see if a driver course for
Mature drivers is available.
By taking this course you can save up to 10 percent off your total premium.
This is huge, if you are a senior living on a fixed income.
You can also check with certain organizations that cater to a certain
demographic. These are places such as AARP.
If you are a parent with a soon to be sixteen year old or a teenager driver, check
with your current carrier.
Look at the guidelines about new drivers.
It is important to understand these guidelines. It can cost you more in the long
run if you do not understand them.
The reason is some companies will charge for your teenage driver when they
Not all auto liability insurance companies however. Other carriers will wait until your child actually
gets an active drivers license.
Check Policy Guidelines
So, having said this, make sure to research.
Check with your current company and future carriers guidelines.
This is especially true if you have a tween in the household.
It is always best to be well prepare and not be shocked with an increase in your
premium on paper.
No one likes surprises like these.
You may unfortunately fall into a program of coverage that will not accept the
new driver onto the policy.
This is regardless if your child has an active license or is sixteen years of age.
If you are the parent and don’t want to switch current carriers, you have
You can always have your child buy a separate individual policy.
This way they will have their own policy with just their vehicle listed.
Make sure to include yourself as the parent on the policy so, you can drive your
No Physical Damage Coverage unlike full coverage vehicle, is mandatory to
carry in the state of California and most states.
Let’s say you live in Orange County California.
You are a brand new driver and looking for the lowest online quotes and rates
You will begin your search with asking for the basic minimum requirement.
This coverage, necessary for the State you live in.
California will require insurance limits to be at a minimum of 15/30/5.
The property damage coverage is only $5,000 per incident. This will cover for
The bodily injury portion which covers the other party in case of injury or
injuries is $15, 0000 per person up to a total of $30,000 per accident.
This portion is also known as insurer damage. It would be the responsibility of
the company to pay if their client is liable.
That’s it, this protection serves to protect the “other party”. This is why it’s
called no physical damage protection.
Your personal vehicle damage would not be covered under this program.
However, this coverage on your policy would cover the other party’s vehicle.
This is if you were involved in an accident.
Many drivers will risk driving without car coverage. This can be for a number
Recently laid off, living paycheck and trying to stay afloat until the paycheck.
The reasons and circumstances vary for every person.
Regardless of the reason, it’s the law to carry coverage in the state of
California. So, make sure to prioritize that bill into your budget. You may be the
safest driver out on the roads
However, the risk of someone else hitting you or other elements such as road
condition or weather elements.
These can all be factors in a higher probability you will be involved in some
kind of incident or loss.
Liability Coverage programs allow you the individual, to put in a small fee
called policy coverage premiums, into a large pool with other people needing
coverage like yourself.
This pool is based on the “large number theory”, meaning the larger the pool of
like demographics allows individual cost of car coverage protection to minimal
compared to paying out-of-pocket.
This offsets the damages and injuries a company would take on in a pool of
Your provider or company will have a financial reserve that is
regulated by the Department of Insurance.
This is to ensure if everyone in that pool were to file a claim against their
policy, enough money would be available to pay out all the claims.
Insurer damage is offset with the amount of policies on file.
The larger the pool, the more likely damages and injury costs will be reduced
with intake claims, since they balance out.
In some cases this does not occur and a company can become insolvent since
the insurer damage is larger or greater than the reserve pool.
This can be due to a catastrophic event where one territory is hit terribly bad.
One insurer has more damage in that territory than others depending on their
So, in closing rare yes, but companies can become insolvent or placed on
moratorium which means they are not allowed to write new business.
If a company is on moratorium it can still maintain their current customer’s
book but new business is off-limits.
In some cases, a letter will be sent out to all insureds notifying them of their
Sometimes it may even indicate if their current provider or company will be
able to maintain their policy.
If not, a letter will be mailed to your residence letting you know your
options. In some cases, the carrier may have a sister company they can convert
your policy over too.
If you are working with an broker or agent, you can request them to search for
a new provider or company that will accept their risk.
If you are working with a single direct carrier you will not have this option
since they only represent one company.
They may be able to refer you out to a brokerage or agency. Either-way, it’s
best to shop your rates with multiple carriers.
This is because rates do change. The insurer damage can increase or decrease.
This can effect your rates so, just be aware.
Research Underwriting Protocol
Research coverage companies who specialize in this basic coverage
market. This can save you huge.
They can offer far more competitive rates then their full coverage companies.
It makes sense to shop and compare auto quotes. Also, make sure you are
comparing quotes for your lifestyle and personal needs.
If you were ever with a company who recently denied or dropped you because
of a “moratorium” or freeze in writing new business or certain territories.
Than you have experience the “reserve pool” working.
A freeze can come either by the Department or the actual provider. This serves
to protect all the insured in that pool.
What good would coverage be if when you went to go use it, you found out that
the company was insolvent.
Look for companies with an A plus rated score.
You can also verify withe the Department of Insurance. This is because
they handle the regulation of insurance in their governed stated.
Regardless of the brand name of the carrier or company, all rated A companies
ensure California Insurance Guaranty.
This is just like your bank regardless a Credit Union or traditional bank are all
backed by the FDIC.
The same protocol follows with California Providers and Companies.
Great question since you will need to know who will be covered under your
To help you understand, if you were to buy a liability only auto policy and
wanted to have your best friend drive your car, than you would need to make
sure your policy includes “permissive use.”
Permissive use would allow you have your buddy drive your car as long as he
or she didn’t live with you in the same household
Also, this coverage would take in effect if this driver does not use your vehicle
as primary transportation.
Full Coverage Protection
Unfortunately, we have seen many people buy Full Coverage to learn after the
fact, that they have a “named insured policy.”
This type of coverage prohibits any driver not listed on your policy.
Some people have learned the hard way about this feature, which normally
always comes after a loss or claim has occurred.
You want to ask these important questions when you receive your quotes.
Unfortunately, not all companies or providers will explain the coverage details.
So, take notes and ask questions during the quoting
process and not after an accident.
Each coverage policy will have different language in their underwriting
But for the most part an insured is a resident spouse,
family member who lives with you.
If you do not want a living family member to be listed on your personal policy,
than you can exclude that driver.
If you do not disclose other potential drivers in your household, than you run
the risk of having your coverage void if an occurrence should happen with a
person living in your household and using your vehicle.
Most providers and companies have a data base that can run consumer background reports on you.
These reports will disclose all past and present household residents of that
If this should happen, you would receive a letter from your company or
provider asking you to either exclude or include the following drivers found on
our consumer report.
So, if you do not want any future surprises with your policy premium or
coverage, make sure to disclose all drivers on
your policy at the time of your quote.
Keep in mind this is whether you have “permissive use” included on your
The last definition of an insured is for business use.
If a business provides permission for a representative to use their vehicles.
Vehicle coverage would extend for these drivers.
However, for the sake of discussing only personal coverage policy, business
use will not be discussed in-depth in this article entry.
Business coverage is normally not found on your personal policy.
Business use is excluded on most liability polices, and if needed,
you would need to buy business coverage separately.
Shop and Save
We represent over 100 Top Notch Insurance carriers.
This means we do all the legwork for you.
Each carrier has different niches. You need to understand
which niche market you fall into.
These carriers specialize in liability only and non owner coverage.
Remember, not all automobile coverage is the same. This is important when in
search of low cost insurance that you are matching your personal needs with
the right company.
Now that you’ve read this article, you know more about choosing auto
insurance that’s a good fit for you.
The more you know about something, the better your decision will be.
You even have the option of teaching these valuable lessons to all of your
friends or family members whom are considering a
change in their insurance policy.
Looking for affordable liability insurance coverage for your car?
Great, contact a license insurance specialist at 877-539-2533!
We can walk you through the process of getting you legal.
Just liability or full coverage auto protection is available.
Compare rates in your market and save big!