What to know when buying Auto Insurance

what to know about LA car insuranceFor anyone in Southern California, it is safe to assume we own a car and have purchased auto insurance. But did you know that not all auto liability insurance policies are created equal? The universe of car insurance is complex, with a range of coverage options that may, or may not, be right for your specific situation. As the California Department of Insurance puts it, car insurance is an oft-misunderstood product. Even when you meet the required by law, California minimum amount of insurance, are you appropriately covered for your specific needs?

Whether you are out shopping for new auto insurance or are not quite ready to start shopping, we wanted to provide you with the right knowledge to ask the right questions to get the right car insurance for you. So let’s take a look at some common myths about car insurance.

Myth #1: If My Car is Stolen, Vandalized or Damaged in a Storm Auto Insurance covers me

True — if you’ve added comprehensive coverage to your policy. The bodily injury insurance and property damage insurance required by state law covers damages that result from a car accident, nothing more.

Myth #2: If I Total My Car, My Insurance Pays Off My Loan

False. Your policy will pay your vehicle’s actual cash value, minus depreciation, after you meet your deductible. If you still owe money for a lease or loan you are responsible for making the loan or lease payments until the end of the contract.

Myth #3: If Someone Else Drives My Car, Their Auto Insurance Covers Any Damage They Do

It varies from policy to policy. In most cases, the driver’s liability insurance will follow them, while your comprehensive or collision insurance follows your car. Often, your insurance will kick in first if there’s an accident, while the driver’s insurance may cover some medical or personal injury costs. Speak with your independent insurance agent before letting someone else drive your car to ensure that all your needs are covered.

Myth #4: Minimum State-Mandated Insurance is Enough

Unfortunately, the costs of an accident often far exceed state-mandated limits. If the expenses are more than your policy covers, you’ll have to pay out-of-pocket if you’re found to be at fault. Minimum coverage just isn’t adequate.

Myth # 5: I no longer need to find a local insurance agent

That depends on your situation. The complex nature of car insurance highlights the value of working with an independent insurance agent. If you want to have the best chance of getting the right insurance coverage for the right costs, working with a local independent insurance agent will help you make that possible.

Pacific Unified Insurance, Your Local Los Angeles Independent Insurance Agency

As a Los Angeles insurance agency, we can evaluate the risks and liabilities you face in your specific situation within the greater Los Angeles region, then offer you affordable auto insurance policies that meet your needs. This personal service does save you money, as you won’t be paying for products you don’t need and will provide you with the peace of mind that comes from knowing you’re covered.

Dave Leahy (154 Posts)

Born and raised in Southern California, Dave was educated at Loyola High School and Arizona State University. After graduation, he founded two successful restaurants in Arizona, eventually selling them to move back to California. He began his insurance career working for Canadian Indemnity Insurance Company before joining Frank M. Flynn & Company in 1979. In 1985, he purchased the agency, eventually joining other local insurance agency owners to form Pacific Unified Insurance in 1992.


Filed under: Auto Insurance — Dave Leahy @ 12:08 pm May 31, 2018


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