California Car Insurance

Insurance is a way of protection against financial loss in case of some disaster. It’s a type of risk management, mostly used to mitigate the potential risk of some unpredictable or contingent loss. Insurance can also be defined as the transfer of risk between an entity and an insurer, where the insurer assumes the risk in terms of financial loss.

So, how do insurance companies make money? They sell insurance policies to their customers at a specific rate, which varies with each company. Insurance is a contract between two parties. The insurer pays the insured a regular insurance premium on an agreed time period. In return, the insured has to pay a specific amount to the insurer in case of some loss; otherwise, he/she would not be covered. Therefore, insurance plays a very important role, especially for large organizations.

Most insurance companies offer two types of insurance: The term and universal life insurance. Term insurance covers the insured for a fixed period of time, say one year, and the premium is mostly affordable. When the insured dies during the course of his term, the insurer would payout the death benefit. However, a universal life insurance covers the insured for a pre-determined number of years, generally the equivalent of the age of the insured, minus a certain percentage.

Auto insurance is one of the most popular types of insurance coverage, especially among young men who are driving for a living. An auto insurance policy provides coverage, mainly for damage and injuries caused to an insured vehicle. However, the coverage and the premium costs are determined by the details contained in the auto insurance policy. One of the more important factors that affect premiums is the deductible, which is the amount that the insured must pay up front in case of an accident. The higher the deductible, the lower the monthly premiums will be.

Insurance coverage that is required for a car owner in California may vary. There are mandatory minimum levels of liability coverage in the law, which may be enforced by the Department of Motor Vehicles. Minimum personal property coverage is mandated by the law, and includes the “other personal property” defined by the DMV. Bodily injury and property damage coverage is not mandatory but can be accessed through a separate rider to the already existing liability insurance. California car insurance policies are usually available only from a number of insurers, although more companies are offering policies in the Golden State now than in the past. Today there are more agents and brokers who understand the requirements for auto insurance in California, and can help car owners obtain the most appropriate coverage.

Travel insurance can also provide medical coverage should the insured become ill or injured abroad. Travel insurance policies will pay a portion of the projected expenses for lost wages, lodging and other expenses due to illness while traveling outside the country. Health insurance is designed to protect the insured from large medical bills when the insured becomes ill and needs medical attention in a foreign country. In California, both health insurance and travel insurance are legal requirements. The uninsured motorist provision of the law provides protection against damages due to an accident if the insured driver has no insurance or inadequate insurance to cover the damages.

Similar Posts