Navigating the Roads: Impact of High Crash Rates on California's Young Drivers and Insurance Premium
Explore impact of high crash rates on California's young drivers. Learn how it affects insurance premiums & discover state initiatives.
Insurance is a way of managing risks. When you buy insurance, you transfer the cost of a potential loss to the insurance company in exchange for a fee, known as the premium. Insurance companies invest the funds securely, so it can grow, and pay out when there’s a claim.
Insurance helps you:
Own a home, because mortgage lenders need to know your home is protected. It covers you for repairs and replacement of any damage that’s covered in your policy. It provides protection against theft, damage from perils like fire and water, and financial responsibility that could result from a visitor or guest being accidentally injured on your property.
Drive vehicles, because few people could afford the repairs, health care costs and legal expenses associated with collisions and injuries without coverage. Auto insurance is also a legal requirement.
Maintain your current standard of living if you become disabled or have a critical illness. It covers your day-to-day costs and larger expenses like your mortgage while you focus on your health and recovery.
Cover health care costs like prescription drugs, dental care, vision care and other health-related items.
Provide for your family in the event of a death. There are life insurance options for short and long-term needs that protect your family’s home, mortgage, lifestyle and the cost of post-secondary education for children.
Run a small business or family farm by managing the risks of ownership. Get owner, business and employee coverage, and provide group benefits and retirement plans for employees.
Take vacations without worrying about flight cancellations or emergency medical expenses abroad. Take the time to review your policies and contact one of our helpful Financial Advisors to answer your questions or get advice. A little knowledge can make a big difference when it comes to buying the right insurance to help protect what matters most for you and your family.
Personal lines policies are based on factors such as your credit, where you live, the type of home or vehicle you possess, your age, your claims history, etc. If you have made previous insurance claims, they are filed on a database called CLUE: Comprehensive Loss Underwriting Exchange. CLUE is a claims history database created by ChoicePoint that enables insurance companies to access consumer claims information when they are underwriting or rating an insurance policy. We will also run your driving record for tickets and accidents.
Liability is your legal responsibility for damages. For example, when you are at fault in an accident, you have liability to pay for the damages and injuries caused to others involved.
When you are getting your car repaired or home damage fixed the deductible is the portion of the damage that you pay. Once you have paid your deductible, your insurance pays for the rest of the damage. For example, if you have a $500 collision deductible on your vehicle and are involved in an at-fault accident, you would pay for $500 of the damage and the insurer would pay the remaining amount to fix your car. You can see how this is beneficial in cases of significant damage. A low deductible means you pay very little before your insurance kicks in. However, having a higher deductible is one way to lower your overall premium (your monthly payment).