Why You Need Automobile Insurance
The law requires that your vehicle must have a current insurance certificate that meets a minimum requirement. Automobile insurance companies insure your vehicle against any kind of accident. This coverage can include injury to you and covers accidents caused either by the other person or by you. Various insurance companies have various schemes, and with proper research, you can always find the one that best suits you, your car and your pocket.
As accidents do happen and car theft has become quite common, this law is in your own interest as it ensures that you have access to some recourse in case these things happen to you. The first thing to do is find a licensed insurance company. All states have an Office of the Insurance Commissioner that trains and licenses agents, so do ask around and find a well-known company with qualified agents. Dealing directly with a company ensures that you get the best rates available, as there is no “middle man” involved.
Automobile insurance companies in California offer a wide range of insurance schemes. These cover medical expenses (bodily injury), uninsured or underinsured drivers and physical damage (collision insurance – which covers any damage to your car due to collision, regardless of whose fault it is or comprehensive insurance – which covers any damage to your car, other than collision, eg, fire, theft, storm, vandalism, etc).
If you are not happy with your insurance company, for any reason, you have the option to cancel your policy with them, by merely writing to them.
Of course, there will be a penalty to pay if you cancel before the renewal date (the longer you have held the policy, the less you will have to pay). The usual rate is 4% to 6% of the annual premium, which is not a very high price to pay if you have found another policy or another company that suits you better.