Reader’s Question:

I’m a new driver here in San Francisco, CA. I still don’t have a car but I’m planning to get one, hopefully soon. I’m totally clueless when it comes to auto insurance stuff. Can you give me some tips on this?

Paige

San Francisco, CA

Sure Paige! The very basic thing you should know is what does California law requires for auto insurance coverage.
California State Law requires every owner and driver to maintain financial responsibility for accidents and there are four ways to establish such responsibility:

1. coverage by auto insurance policy;
2. a deposit amounting to$35,000 to Department of Motor Vehicles (DMV);
3. a surety bond amounting to $35,000, which must be acquired from a duly licensed company in CA; and
4. self-insurance approved by DMV

Now, let’s consider the types of auto insurance policies. Being in Bay Area also means getting an expensive auto insurance. Usually, there are 3 types of policy offered - preferred, standard, and assigned. Each policy differs in price and coverage.

Standard policy is for drivers with less traffic violations and/or cancellation of past polices. This policy offer lower premiums as compared to other kinds of policy. Preferred policies on the other hand are for California residents who have good driving history, (and I mean “clean” driving record) for three years. Lastly, Assigned Risk polices offer the most expensive rates but at the same time the offers the least amount of coverage.

I would also suggest for you to check on auto insurance companies in San Francisco, CA. You can compare quotes here easily and faster and get the best policy that you think meets your needs.

Tags: New Driver Insurance