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Answers to Some of Your California Car Insurance Concerns

Is California a Tort state or a No Fault state and how does this affect my auto insurance policy?

For a long time, the state of California has been a Tort state and it’s been using the system for all car insurance matters. What a tort system does is that it requires the state of California to expressly name an individual as the one responsible for causing a car accident. The person who is named responsible is at fault and he or she is in turn required by law to cover all the expenses and costs incurred in the car accident e.g. car repair charges, medical expenses, towing expenses and the like.

When I buy Auto insurance in California, what exactly does it cover?

In general when you go to a car insurance company, an auto insurance broker or agent to buy insurance, what you get is a cover for the car and not the person driving the car. Despite some few grey areas existing on the matter, you are covered if you are injured while in the car or iff someone else is injured while in the car or if someone is injured by the car.

How then does it affect the driver?

When you are buying auto insurance in California, the auto insurance agent or the company will always ask you to provide a list of the people who are expected to drive the car and how much they will be driving it, before they give you a policy rate. This will at most cases decide whether the insurance company will pay for the expenses or deny them, in case someone not listed in the policy causes an accident while driving the particular car. To be on the safe side, just list all capable drivers in your household in the policy.

What if I lend my car to someone else?

It may sound strange but when you lend your car to someone outside your household, he or she is generally covered by the auto insurance policy if they are involved in an accident regardless if he or she is not listed in the policy. This is because your insurer knows that you cannot list all drivers you anticipate will drive car. Your car insurance company will cover the damages or injury expenses even if he or she has their own auto insurance coverage.

What about the owner of the vehicle?

Under California car insurance, the owner is usually the named insured meaning that he or she is always covered at the rate agreed and reached upon by the driver’s driving record. Other factors they might look at are accidents at which you were at fault and other moving violations. If one of the named drivers from your household is a teenager, the insurance premium is bound to increase because they are generally high-risk drivers. You have to make a difficult choice here because including them in your policy makes it very expensive while excluding them leaves them uninsured.

Get more answer to similar or other questions you may have regarding auto insurance in California and many other resources like rates and auto insurance companies in your area by entering your zip above.