Why Auto Insurance is important in California
Automobiles are viewed as necessities by many people in California. Owning and operating automobiles give rise to certain loss exposures for individuals and families:
- Individual might be sued or held liable for accidents involving automobiles.
- Auto liability insurance is very important to cover these kinds of exposure as liability insurance covers for bodily injury and property damage to a third party.
- Individual might be injured while using their automobiles.
- This is why med pay coverage is important. This coverage covers the insured for injuries sustained while occupying or getting into the vehicle.
- The vehicles might be damaged or destroyed (total loss)
- If a vehicle is a total loss, an insurance company usually owes the insured actual cash value for the automobile.
- Some auto insurance companies use a third party vendor to provide them with the value of the total loss vehicle bases on like vehicle in the market. Another way that adjuster determines total loss values are by using NADA or Kelly blue book. You can always challenge the value of the vehicle by doing your own search via using the web or local newspapers that might be selling the same type of vehicles like yours.
Although such exposures can be controlled, auto insurance is the primary means of treating auto loss exposures in California.
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