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AUTO INSURANCE 101
Choosing the "Right" Auto Insurance
How much can you afford to lose?
Auto insurance lets you sleep at night knowing you are protecting your hard-earned assets. In California, the law states that drivers must carry auto insurance.
Translated, this means if you harm or kill someone driving your car, your liability portion of your car insurance policy will pay to defend you. The real issue is determining your liability coverage limits.
The more coverage you have, the less it will cost you if you get in an accident and the damages from the accident exceed the policy limits. While there's no hard and fast rule about the amount of auto insurance coverage you should have, most states require that you carry only a minimum level of auto insurance coverage.
CA State Law requires that an agent or Company inform you as to "State liability minimums." Such limits may be applicable to the person with little or no assets to protect. Most should consider much higher. Why?
Because if you're involved in a serious accident, the damages could significantly exceed your auto insurance coverage- making you liable for thousands of dollars out of your own pocket! Don't skimp on your auto insurance coverage. You'll need it to protect you if you're ever involved in an accident.
Additional liability coverage is relatively inexpensive. Base your liability limits on the assets you have to lose - should someone sue you and come after your personal assets. Smart buyers choose the liability limits needed to purchase a personal umbrella liability policy - adding thousands of protection dollars at minimal cost.
We recommend that you choose the highest deductibles you can comfortably afford for damage to your car. This strategy helps you save money that you can use to pay for the extra liability coverage you need.
One of the most valuable tips we can offer is to buy uninsured and underinsured motorist coverage limits equal to your liability coverage limits. Consider: one of every three California drivers breaks the law and drives without car insurance. How would you "live" if an uninsured driver were to disable you in an automobile accident? One income source is to turn to your uninsured driver insurance coverage.
Ask any good lawyers and they will tell you that most people are drastically underinsured for uninsured motorists insurance coverage.
The Fred Simmons Insurance Agency is ready to help you choose the auto insurance coverage most suited for you. "Insurance of Value" - "smart" coverage for the "right" price - that's our goal for you!
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