Automobile insurance is a contract that helps financial compensate for certain types of financial losses or obligations as a direct result of utilizing or ownership of an automobile. In order to obtain this contract or more commonly known as an insurance policy, you will be required to pay a specified amount known as a premium. Upon payment of the premium the insurance company in turn agrees to pay expenses that have been agreed upon in your policy. This would include items such as legal liabilities which are referenced in detail in your insurance policy.
One of the pertinent responsibilities of owning and driving an automobile includes financial responsibility laws stated in the Vehicle Code. The usual method by most Los Angeles drivers to meet these obligations with out breaking the bank is purchasing automobile liability insurance.
If you choose to meet your financial responsibility through the method of purchasing liability insurance the Department of Motor Vehicles oulines the minimum that you must purchase under Section 16451 of the Vehicle Code.
Financial Responsibility Laws
The state of California has statutory minimum limits of liability insurance that all vehicle owners and operators are required to possess. Currently these minimum limits are the minimum amounts of coverage for any individual residing in the Los Angeles County and throughout State of California.
The minimum financial liability that must be covered by your policy needs to include the following:
· $15,000 of coverage for death or injury of any individual in a single accident.
· $30,000 for all persons involved in a single accident.
This coverage assures everyone involved in the accident that they will receive compensation for their injuries or losses. Not to mention damage done to any property is also a requirement when involved in an accident. Of course the wish is that this would be the only harm done when involved in any accident.
The minimum financial liability for property damage is $5,000 for any accident.
Four ways to meet financial responsibility:
1. Coverage by a motor vehicle or automobile liability insurance policy;
2. A Cash deposit of $35,000 with the Department of Motor Vehicles
3. A certificate of self-insurance issued by the Department of Motor Vehicles to owners of fleets of more than 25 vehicles; or
4. A surety bond for $35,000 obtained from an insurance company licensed to do business in California.
How to Obtain and Maintain Cheap Los Angeles Auto Insurance Coverage
The best method to obtain quality yet cheap Los Angeles auto insurance rates is to fall into the less aggressive driver’s category. Aggressive drivers are commonly associated with being responsible for accidents and other driver related incidents on public roads and highways. Although Los Angeles can be a tough place to remain courteous to other drivers it is essential to maintain low insurance rates. Below are some helpful tips that can keep you way from the red zone.
· Patience is a virtue, constantly reminder yourself of this can help you relax and put things into perspective. I am sure we have all been there, running late for an important meeting or being later than usual to work. Just remember that behind every steering wheel there is a life also trying to get somewhere.
· Relax – Although it is always tempting to just honk your horn while sitting in rush hour traffic, it wouldn’t be the most relaxing thing to do. Instead put on some slow jams or pop in a motivational CD while you advance to your destination.
· Be punctual – With such a busy lifestyle and so many commitments to attend to, this one seems easier said than done. It is highly advisable that you start out towards your destination well before time in order to reduce the amount of stress that goes along with traveling the congested Los Angeles highways. Playing relaxing music or listening to comedy can help take some of your edge off.
· Focus – Keep your eyes on the road and focus on it. It is easy to get distracted by bill boards, pedestrians, scenery and of course your mobile device. Not to mention the occasional Los Angeles one finger salute.
With so many types of auto insurance it can be difficult to distinguish what suits your current needs. Below are some of the most common types of insurance.
Collision Insurance: If you are at fault in an automobile accident, collision insurance would pay for the damages done to your motor vehicle. Your vehicle could be replaced if the extent of the damages are beyond repair.
Liability Insurance: If you are at fault in an accident involving other vehicles, pedestrians or property damages, liability insurance would cover your costs of the damages.
Comprehensive Insurance: If your vehicle is subjected to damages due to vandalism, theft, collision or a natural disaster, comprehensive insurance would cover your cost of repairing the damages or vehicle replacement.
Uninsured Motorist Insurance: After a vehicle collision has taken place the party responsible for causing the accident is also responsible for the damages incurred; However, in the unfortunate even that the party at fault does not have any type of insurance coverage? This is where uninsured motorist insurance would protect you in such an untimely event.
Gap Insurance: If you are leasing or making payments on a vehicle, the replacement value of your vehicle may be less than what you actually owe on the car. In this case, you would be monetarily responsible for the difference. Gap insurance will pay the difference from what you owe on your car and what the car is worth.
Unfortunately auto insurance cannot be taken to be a one-size-fits-
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