Purchasing auto insurance in Los Angeles can bring up many concerns for the average driver and vehicle owner. While every driver in California is required to have auto insurance and the state requires certain minimum liability limits, not everyone obeys these laws. As we have to consider our own needs to protect against liability claims and uninsured motorists it is important to better understand auto insurance and the options available.
Not every auto insurance policy is equal.  One company might have a low rate and another might seem high, but it takes a trained professional to help the public understand the difference.

Here are some frequently asked questions that should help explain some common concerns related to auto insurance:

What does “full coverage” mean?

The term “full coverage” is a bit of a misleading term.  It generally means the policy carries liability coverage plus both physical damage coverages: collision, for damage from contact with another vehicle or an object, and comprehensive, for causes other than collision such as theft, fire or vandalism. The term full coverage does not mean that “everything” is covered no matter what happens. Your Auto insurance Policy Declarations lists your coverage and policy limits, and each company’s policies are written differently so read the policy carefully for any exclusions.

Does my auto insurance cover belongings in my car if they are stolen from my vehicle?

No.  Your auto insurance policy is not typically going to cover your personal property while in your car.  A homeowner’s insurance policy or renters’ insurance policy is where personal property is insured that is frequently in your car, such as a laptop, cell phone or jacket.

If I drive someone else’s auto am I covered?

Insurance typically follows the car, but it is important to understand what Permissive Use coverage a vehicle owner has to better explain an answer to this question. For example, if you are involved in an at fault accident while driving someone else’s car, the owner’s insurance would typically be applied towards damages first. Your Auto insurance would then apply in the event the owner of the vehicle had no Auto insurance or did not have enough Auto insurance to pay the damages.

How do I keep my auto insurance rates as low as possible?

Here are a few ways to keep your auto rates as low as possible:

  • Bundle your insurance.  Having your homeowners insurance with the same company as your auto insurance is a great way to save on your overall insurance expenses.
  • Maintain a clean driving record.  If you get a moving violation take traffic school immediately, if available and applicable in your state, to keep the negative points off of your driving record.
  • Increase your deductible.  Many times raising your deductible from $500 to $1000 can save you substantially on your auto insurance premium
  • Insure additional autos to qualify for multi-car discounts.
  • Insure your boat, motorcycle, or RV or bundle with your life insurance to earn additional discounts.

Is my rate affected by the type of car I drive?

Yes.  The type of car you drive can have quite an effect on the premium you pay for your auto insurance. The costs for comprehensive and collision auto insurance coverage are derived by the type of vehicle loss history – how often that specific make and model is stolen, and how costly it is to repair or replace after an accident.  Also taken into consideration are the safety features of each auto, such as air bags, anti-lock brakes and more.

Why did my auto premium increase?

Most drivers are well aware that tickets and accidents can significantly impact your car insurance premium. But those are not the only reasons why you might see an increase from your auto insurance carrier.  There are many other factors that affect the cost of auto insurance.  Some additional factors that can cause a rate adjustment are:

  • Adding a driver to your policy.  It you add a teenager with little driving experience, or a driver with tickets and accidents on their motor vehicle records (MVR).
  • A change in personal residence can also affect the rate of an auto insurance policy.  Each zip code is associated with different crime rates and other factors.  Insurance companies take into consideration the rate of traffic accidents, thefts and vandalism.

What discounts are available if I want to bundle my insurance?

Every insurance company is different, but if you’re already purchasing auto insurance, you might consider looking for options to save money by asking your insurance agent if their carrier offers discounts for bundling a motorcycle, homeowners insurance or renters insurance, life insurance, or recreational vehicle insurance with your auto policy.

What kinds of discounts are available for Auto insurance?

Every carrier has a different type of discount program.  Ask your local insurance agent about their company’s discount programs including discounts for selected occupational groups (doctors, RNs, dentists, lawyers, engineers, teachers, police, firefighters, etc.), homeowners, good students, teens with parents who have safe driving records, drivers who own cars with air bags, drivers who own two or more automobiles, senior safe driving discounts and more.

How much auto insurance does California require?

Most states require drivers to carry a minimum amount of Liability insurance, or establish financial responsibility one way or another. Many states will not allow a car owner to register their vehicle or renew their drivers’ license without proof of insurance. In California the minimum liability limits for auto insurance are 30/60/15. Those limits took effect on January 1, 2025 and replaced the 15/30/5 figures that had stood for decades.  Just because these limits are the minimum requirements by the state does not mean they are sufficient to protect you and your family from liability claims.

What’s the difference between bodily injury liability coverage and medical payments coverage?

Bodily Injury Liability coverage pays for injuries you or anyone covered under your policy are found to be liable for. Medical Payments coverage compensates for reasonable medical expenses for you or your passengers, regardless of who is at fault for the accident.

Are any discounts available for taking a driving safety class?

Depending on the insurance company and their discount programs.  Ask your agent about options for young drivers under the age of 21 (in most states) as they might qualify for a Young Drivers Safety Class discount. Older drivers 55 and older, in most states, may qualify for a discount good for three years by taking a Senior Safe Driving Course.

Most of these questions are settled by the declarations page rather than by general rules, and yours may answer differently. Send it over and we will walk through it. Send us your policy to start.

Disclaimer

This article is provided by Schneiderman Insurance Agency for general informational purposes only. It is not legal, tax, financial, claims, or coverage advice. We are licensed insurance professionals, not attorneys, accountants, or financial advisors, and nothing here should be relied on as a substitute for advice from a qualified professional in those fields. This content is general in nature and is not a review of, or a recommendation for, any individual reader’s specific insurance needs, policies, or circumstances. Insurance coverage depends entirely on the specific terms, conditions, endorsements, exclusions, limits, underwriting eligibility, carrier, and facts of each situation, and the actual policy language always controls. We do not guarantee any coverage, pricing, eligibility, underwriting approval, or claim outcome. Reading this article does not create an agent-client relationship. To understand how these issues apply to your situation, please review your own policy and speak with a licensed insurance professional, and consult legal, tax, or financial advisors where appropriate.

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