When individuals need to purchase insurance for their automobile, they often become confused and frustrated because they don’t know what kind of insurance they need. Car owners must familiarize themselves with the various types of insurance so they can get the best coverage. Read the information below to learn about the most common types of Automobile Insurance in Santa Cruz that’s available.
Liability Auto Insurance
This type of insurance doesn’t cover the damages to the purchaser’s vehicle if they cause an accident. This insurance only covers the damages to the other driver’s vehicle and medical bills if the other driver or passengers are injured in the accident. Liability insurance also pays if an individual causes damage to another person’s property while driving.
All residents of California who drive an automobile must purchase liability insurance because it’s a state law. Individuals must also have the minimum amount of liability insurance that’s required by the state. The State of California Department of Motor Vehicles website states that motorists must have liability coverage of at least $15,000 for injury or death for one person and at least $5,000 for damage to property.
Collision Auto Insurance
When individuals want an insurance policy that covers the damages to their vehicle if they’re in an accident, then they need to purchase collision insurance. This type of insurance is not required by the state of California, but individuals who are making automobile payments may be required by their lender to purchase this type of policy. To fix the damages to the vehicle, individuals will have a set deductible amount to pay before the insurance takes over the rest of the repair costs.
Comprehensive Auto Insurance
This type of insurance is also optional unless required by the lending institution. Collision insurance is used when individuals have damage to their car because of other reasons besides an accident with another vehicle. Scenarios that are covered by comprehensive insurance are hail damage, fire, theft or hitting a large animal while driving. Individuals also have a deductible amount they must meet before their Automobile Insurance in Santa Cruz takes over.
Coast Auto Insurance Services offers affordable vehicle insurance for the residents of Santa Cruz. Visit the website to get additional information about their insurance services and to get a free quote.