What is Auto Insurance?
Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.
- Liability coverage pays for your legal responsibility to others for bodily injury or property damage to their vehicle or property. In California, you are legally required to have this coverage to own or operate a vehicle.
- Property coverage (or Physical Damage Coverage) pays for damage, theft or vandalism to your car. You are not required to have this coverage by law, however, if you are financing or leasing your car, your financial institution will require this coverage.
- Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
Why Do I Need Auto Insurance?
First and foremost, auto insurance is required by law in California. To legally register a car in California, the DMV will require proof of liability auto insurance to protect other vehicles from your negligence. Also, if you are financing your vehicle, your bank or other financial institution will require you to also cover the vehicle for physical damage (also known as Comprehensive and Collision Coverage).
Also, it is just financially prudent to protect you and your family from potential financial disaster if you are involved in an accident. Even small accidents these days can cost several thousands of dollars just to repair what may seem like minor damage. And if any persons are injured, the medical costs can be extreme. Without insurance, those injuries to other party’s will have to be paid by you, one way or another, including wage garnishment.
How Do I Get Auto Insurance?
There are hundreds of insurance companies offering auto insurance in California. Which one is right for you? The best way is to contact an independent insurance agent who can search many different insurance companies to find the one that is the best fit for your needs based on coverage needs, price and your driving record.
To start your search for auto insurance, contact us at Rafter Insurance Agency today so we can assist you in matching your auto insurance needs with the companies we represent.