Things You Should Know When You Compare Auto Insurance RatesThe Compulsory Financial Responsibility Law in California mandates that all vehicle owners and drivers should be financially responsible for all their driving decisions. There are four ways for a vehicle owner or driver to accomplish financial responsibility in the state of California. One option is to make a cash deposit for the amount of $35,000 with the Department of Motor Vehicles (DMV) and another is to post a surety bond for the same amount through a licensed auto insurance company. For those who own more than twenty five vehicle units, they may be issued a certificate of self-insurance by the DMV. However, the most commonly used alternative it to purchase a motor vehicle or auto liability insurance policy. Consumers are advised to compare auto insurance rates to be able to save in annual auto insurance premiums. Assembly Bill (AB) 2677 which was approved by State Legislature made it convenient for consumers to compare auto insurance rates. This law was made effective in January of 2005. This law requires all private insurers to provide consumers with cost estimate of their lowest priced auto policy with coverage protection that is suited to the needs of a particular consumer. This can be done in one of two ways. One is by maintaining a toll-free telephone number and the other is by maintaining an Internet web site. All auto insurers should likewise furnish their contact numbers, addresses and web sites to California Department of Insurance (CDI) so consumers can obtain enough information needed to compare auto insurance rates.
When you compare auto insurance rates, it is necessary that you not only limit yourself to large insurance companies like State Farm, Allstate, and SAFECO. Try to obtain auto insurance rates from independent agents and phone-based carriers like GEICO or Amica. You may also request auto insurance quotes from Internet-based auto insurance companies. In a study conducted by Progressive Insurance, it was revealed that many consumers ended up paying for high insurance premiums when they could have availed of an identical policy at a significantly cheaper price through another auto insurance provider. Another study by Progressive Insurance also revealed that only twenty percent of survey respondents took the time to compare auto insurance rates. There are other factors to be considered when shopping around for an auto insurance policy. You should also consider the reputation of the auto insurance provider that you selected. You can verify through CDI if that insurance company is licensed. You also need to make sure that it is financially capable of providing its clients liability protection as contained in the insurance policy. It is also a good idea to check out the track record of the company when it comes to handling insurance-related complaints. When you compare auto insurance rates, consider comparing the claims process of auto insurance companies too. This way, you will have a fairly good idea about what to expect whenever there is a need for you to file an insurance claim. Moreover, if you do not approve of the claims process, it is not too late for you to change your mind. |