The State of California requires car insurance covering at least $ 15,000 in expenses for bodily injury, $ 30,000 in total medical costs in the accident and $5,000 in property damage. The requirements in the insurance limits for damage to third parties vary from state to state.

A good driving record is required to obtain auto insurance at a low cost. If you have no previous fines, accidents or arrests for driving under the influence of alcohol, you have an excellent opportunity to pay a lot less than people with a history of violations.

Aside from your age and driving record, the type and value of your vehicle is one of the most important factors in determining the amount of the premium. For example, the cost of insuring a sports car is considerably higher because these cars are a favorite for thieves and  have a higher replacement cost.

Statistics indicate that the risk of a car accident varies with age. The cost of insuring young people is much higher due to their inexperience as they are more likely to be involved in an accident than drivers over 25 years. Just as young people must pay more for their age and inexperience, drivers may come to pay less when they reach the ages of 40 and 55. In some cases, rates may rise when the driver is older.

If you are responsible for paying an amount greater than the limit of your coverage, you must pay the difference. If you are not insured for enough money, the affected person may sue and go against your assets or future income. So if you are a homeowner or have valuables it is recommended to buy more coverage.

A deductible is the amount of money you agree to pay in case of loss before the insurance company pays your claim. A deductible for auto insurance usually runs between $ 250 to $ 1,000.

A premium is the amount of money the insurance company charges for the coverage being purchased.

Because you are assuming a larger part of the risk involved with insuring you. Generally, the more risk you assume, the less risk that is attached to the insurance company and this translates directly to the price of your premium.

Your priority should be to seek medical help if anyone was injured. Notify the police and get the names, addresses and phone numbers of people involved, including witnesses, even the license plate numbers of other cars involved in the accident. And contact your insurance company as soon as possible.

After an accident or theft recovery, the insurance company may decide that your car is "totaled." This means that the estimated repair the car exceeds its value. At the time, the insurance company will send you a check for the value of the vehicle.

If you were not guilty of the accident, you should make a third-party claim to the insurer of the driver. Because you are the plaintiff, the insurance company will make a check directly to you. It is your responsibility to pay the shop for repairs or the lender of your vehicle. If the driver has no insurance, uninsured motorist coverage (if you acquired when you buy your policy) will take effect.

Most insurance companies impose a waiting period to see if the police recover your car. If the vehicle is still missing after the waiting period, usually 21 days you will receive a settlement. If your vehicle is recovered during the waiting period the insurance company will want to see an estimate of repairs before proceeding. If your policy provides replacement of transport you must pay for a rental car and then submit a reimbursement request your insurance company.

A non-renewal means that your insurance company does not want to offer you a policy because of your driving record or claims over the last three or five years. You will probably find another company that ensures at a higher price. Your insurance may be canceled at any time if you make your payment late, loses your driving privileges or if you did not report details important to determining the risk involved in insuring you. A cancellation will make it difficult for you to obtain insurance in the future.

Although coverage requirements vary from state to state, generally the insurance coverage will equal the minimum of harm to others required by the state where the accident happened. HOWEVER, most insurance companies DO NOT cover MEXICO or CANADA, a different insurance is needed when traveling to other countries.