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Liability Car Insurance

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Liability Car Insurance

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 insurance policy.

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.

Liability Insurance Components

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.

Liability Car Insurance – Tips to Help You?

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.

How Teenagers Effect Parents Policy?

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 turn sixteen.

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.

New Driver Program

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 options.

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 child’s vehicle.

Comprehensive and Collision Insurance

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 possible.

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.

Liability Only – Property Damage Coverage

The property damage coverage is only $5,000 per incident. This will cover for damages property.

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.

Insurer Damage Protection

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.

Liability Auto Only Policy Rates

Many drivers will risk driving without car coverage. This can be for a number of reasons.

Recently laid off, living paycheck and trying to stay afloat until the paycheck.

The reasons and circumstances vary for every person.

It’s the Law!

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.

Why Liability Insurance Coverage was Created?

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 large numbers.

Financial Reserve

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.

Catastrophic Event

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 niche market.

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.

Notifications to You
In some cases, a letter will be sent out to all insureds notifying them of their status.

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.

Refer Me Out

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.

Coverage Freeze
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.

Top Notch Representation
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.

Who is an Insured?

Great question since you will need to know who will be covered under your policy.

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.

Find the Best Deals – General Ins
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 guidelines.

But for the most part an insured is a resident spouse, family member who lives with you.

Family Member Coverage
If you do not want a living family member to be listed on your personal policy, than you can exclude that driver.

You either have to exclude or include on your policy.
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.

Coverage Reports for Companies

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 property.

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 policy.

Liability Coverage for Business Use

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.

Auto Insurance Tips for California Drivers

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.

You have questions, we have answers.
Contact a Licensed Commercial Insurance Professional, who specializes in your industry and needs!

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