Of the Types of Insurance Discussed in This Video Which Are Required by Law

The law states that you must have motor liability insurance. However, if you have a low income, it can be difficult to pay the premium. California has a program to help you. Uninsured/Underinsured Motorist (UMC) Coverage – Provides coverage to a policyholder involved in a collision with a driver who does not have liability insurance or whose liability limits are too low to pay for the full damage. This program helps good, high-income drivers get insurance. The liability insurance premium varies depending on the county where you live. Please check our website for current prices. Cancellation: The cancellation of a policy on its start date. In this case, the insurance company will not pay any of your losses and your premiums will be refunded. This can happen if you knowingly provided false information when requesting the police.

If you have a loan, you usually need to insure your car. If you don`t buy insurance, the credit company can buy it and charge you. It usually costs less if you get your own collision and collision damage waiver. An agent or broker can help you determine your insurance needs, get quotes, compare policies and get the best discounts. Take notes of your conversations. If you wish, have a trusted family member or friend with you. You may want higher limits of liability than required by law. In general, the more assets you have, the more likely you are to lose in a lawsuit. You should discuss your situation with your agent, broker, insurance company or financial advisor.

Some types of coverage have deductibles. A deductible is the amount you have to pay before the insurance company pays anything for a claim. Workbook – A short-term agreement that provides temporary automatic coverage until your auto insurance policy begins. Commission – A fee that an insurance company pays to an agent or broker when selling a policy. Este folleto está disponible en español en nuestro sitio web en insurance.ca.gov. Seleccione Traduce español en el lado derecho de la pantalla. Seleccione la ficha consumidores elegir tipos de seguros, luego seleccione automóvil. Driving without insurance is illegal. In addition, you must have liability insurance to register your car.

Your insurance company will tell the California Department of Motor Vehicles (DMV) if you purchase auto insurance or stop paying your premium. Policy – This is your contract with the insurance company. It explains your reports. It also sets out your rights and obligations and those of the insurance company. Report accidents immediately to law enforcement and your insurance company. You can order a free brochure from the CDI entitled “So you had an accident, what`s next?” This brochure explains what to do in the event of an accident. You must demonstrate your financial responsibility for each vehicle you own in the event of injury or damage to the property of others. Most people demonstrate financial responsibility by purchasing motor vehicle liability insurance. California law states: “All drivers and owners of a motor vehicle must be able to demonstrate financial responsibility at all times and must have proof of the form of financial responsibility applicable to the vehicle at all times.” The insurance company must offer you this coverage. If you decide not to buy it, you will need to sign a form called a waiver.

The form indicates that you have been offered coverage and that you have refused it. Uninsured/underinsured motorists Coverage applies to accidents where the other driver is at fault and has no or insufficient insurance. Make sure that the information is correct and that the coverage is the one you purchased. Contact the company immediately if you find an error. Send the changes in writing to your insurance agent, broker and/or company and keep a copy. Don`t be afraid to contact the insurance company directly to make sure your agent or broker has requested the coverage you want. Use “Registered letter/acknowledgment requested” to ensure that your letter has been received. You can also purchase liability insurance through the California Automobile Assigned Risk Plan (CAARP).

Typically, your health insurance company pays for your immediate medical care. Then, your health insurance company will usually try to recover money from your car insurance or the other person`s car insurance. Agent – A person or organization authorized to sell and maintain insurance policies for an insurance company. Check that the agent or broker is authorized to sell auto insurance in California. Go to www.insurance.ca.gov/license-status/ and enter the name of the agent or broker. Or call the California Department of Insurance at 1-800-927-4357. Declaration page – Usually the first page of an insurance policy. It lists the full legal name of your insurance company, the amount and type of coverage, deductibles and insured vehicles.

Limit – Most of the money your insurance company pays for your loss. Exclusion – These are the specific things that your insurance policy does not cover or limit. For example, your policy may not cover certain types of hazards, people, property or locations. Your insurance company will send you a card to provide proof of insurance. It lists the insured vehicles and the name of the policyholder. It also displays the policy number and the start and end dates of the policy. Keep this card in your car. Premium – The amount you pay to buy an insurance policy. Non-renewal – This is when you or your insurance company do not renew your policy at the end of its term. Claim: Your request to an insurance company to cover an accident or other loss. Your insurance company may send a person called a adjuster. The poster will investigate and assess your damages and losses.

If there is damage to your car, they can refer you to a body shop, or you can choose your own. You can buy these blankets. They are not mandatory. If you do not provide proof of insurance upon request, you will receive a ticket. If you don`t have insurance, your licence may be suspended and your vehicle impounded. Remember, driving is a privilege, not a right. Agents are paid by insurance companies, not by you. When you work with a broker, you usually pay brokerage fees. See page 20. Supplement – A supplement added to the premium by an insurance company. This usually happens because an insured driver has had an accident or movement violation that is their fault. Recourse – When an insurance company pays money for a claim and then tries to be reimbursed or reimbursed by another insurance company.

Each type of report has its own limitations. The limit is the total amount the insurance company pays for a single accident or damage. The insurance does not cover costs that exceed the limits. This coverage is required by lenders or leasing companies. 2. Ask in writing for each insurance company`s offer. Deductible – The amount of loss you have to pay before your insurance company pays anything. Only full and collision coverage have deductibles. Endorsement – A written statement that changes the coverage or details of an insurance policy.

• The limits of liability for this program are lower than the limits normally required by the State. But these limits respect state laws on financial responsibility. The limits are as follows: Example: Let`s say your automobile liability insurance has a limit of $50,000/$100,000 for bodily injury in the event of an accident. In this case, your insurance will not pay more than $50,000 for one person. He pays no more than $100,000 for an accident. 4. Ask for the full name of the insurance company that will issue each policy. In many accidents, both drivers share responsibility. The police, insurance companies or courts decide on comparative negligence. It indicates the share of responsibility of each driver. Cancellation – If you or your insurance company cancel your policy early. You might do this because you haven`t paid your premium.

You can cancel your policy because you no longer own or drive a car. Your auto insurance policy is a contract between you and your insurance company. He explains: “In California, you can buy insurance from an insurance agent, broker or company. You can get insurance quotes online, by phone or by mail. If the accident is not your fault, your insurance will no longer charge you. If you are at least 51% in debt, your premium may increase when you renew your policy. This increase is called a surtax. Auto insurance costs and coverage vary. You should always ask for multiple offers. An offer is an estimate of the amount of your premium. This will cover you if you have an accident with a driver who does not have liability insurance or is underinsured. We are the state authority that regulates the insurance industry.

We are also committed to protecting the rights of insurance customers. See page 28 for more information on CDI. Contact us at: Quote – An estimate of your insurance premiums based on the information you provide to the insurance agent, broker or company. When an insurance company tries to recover money from another insurance company, this is called a remedy. No. Costs vary, even within the same region. If you buy auto insurance, you should compare the costs and coverage of several companies. See pages 14 and 15. This coverage must be offered to you, but you can choose not to buy it. Adjuster – The person at your insurance company who investigates and assesses your damages and losses.

Liability insurance helps pay for injury or damage to others if you are at fault. If you own and drive a vehicle, you must follow the financial accountability laws of the state vehicle code. The most common way to do this is to take out auto liability insurance. By law, the following limits are the minimum insurance limits for a standard auto insurance policy.