Reader’s Question:

My auto insurance premiums have been rising, and I think it is because I purchased way too much coverage. What are the best coverages to maintain in California?

Alexis

Anaheim, CA

America’s population has been steadily increasing, and that means that the number of vehicles on the road is also growing. From an auto insurance perspective, this signifies more accidents, which in turn lead to more claims filed against them. Auto insurance companies have then been increasing their rates as a buffer to the possibly huge amount of payouts they’ll have to make. That, so to speak, is the general auto insurance situation.

In your case, if you’re seeking a way to reduce your auto insurance costs, it might then be sensible to start reassessing your needs. The first time you bought your auto insurance, you probably thought you needed a lot of coverage. Perhaps, now your circumstances have changed, and it might be time to make a downgrade. Be sure to think within the limits set by the state of California. California motorists are required to have liability insurance. The minimum liability coverage is $15,000 in medical expenses for one person, $30,000 in combined medical expenses for all passengers, and $5,000 in private or public property damages. Always keep these figures in mind as you try to work out what would be the ‘best’ coverage that would fit you.

You’re not obliged to get collision and comprehensive insurance, but this might bear serious consideration. While liability pays for the other motorist’s damages and bodily injuries because of an accident you caused, collision and comprehensive coverage will, on the other hand, pay for your own medical and vehicle repair expenses. In making your decision, it wouldn’t hurt to consult your local auto insurance agent. He or she might also be able to offer you discounts that can help reduce your car insurance costs.

Tags: auto insurance claims, auto insurance coverage, auto insurance premium, Car Insurance Company, liability insurance