Car Insurance In Los Angeles
Important Things to Know Before Shopping for Car Insurance Near You in Los Angeles, CA
Are you a business owner who’s looking for commercial insurance for your fleet of vehicles? Would you like to add your newly licensed son or daughter to your insurance policy? Do you want to get your insurance coverage set up before you start shopping for a new vehicle? Whatever your particular situation may be, instead of searching online for “car insurance near me” and hoping you’ll find a reliable provider, get in touch with Lionel Sandoval! A leading Los Angeles, CA car insurance company, we’ve been protecting the motorists of Los Angeles County for years. Liability, collision, comprehensive, uninsured/underinsured motorist; our full-service agency has all of your personal and commercial auto insurance needs covered. We’ll work with you to develop the most comprehensive coverage at rates you can afford to make sure that you’re well protected. For the best car insurance near you, look no further than Lionel Sandoval!
What You Need to Know Before You Start Shopping for Car Insurance in Los Angeles, CA
At first, shopping for car insurance seems pretty simple and straightforward; however, most drivers quickly realize that it’s a lot more confusing than it appears. What in the world is deductible? Why do price quotes vary so much from company to company? What impacts the prices? These are just some of the questions that you might find yourself asking.
To help you avoid confusion and to reduce your headaches and stress, here’s a look at some important things you should know before you start your search for “car insurance near me”.
Key Car Insurance Terms
When you’re shopping for Los Angeles, CA car insurance, you’re going to come across a lot of jargon. Before you begin your search for coverage, knowing what those terms mean is incredibly helpful. Here’s a breakdown of some of the basic auto insurance terms you need to know.
- Premium. The word “premium” describes the amount of money you’ll pay a company to protect you and your vehicle with insurance. Usually, premiums are paid on a monthly basis, though they can also be paid every six months (twice a year), or annually. Some Los Angeles, CA car insurance companies may also offer the option for semi-monthly payments (twice a month). Depending on your provider, if you pay your entire policy up-front, you may get a discounted rate. There are several factors that affect your deductible, which will discuss in detail below.
- Deductible. The term “deductible” refers to the out-of-pocket amount you’ll need to pay before your insurance kicks in and covers the rest of the damages. For instance, if you‘re involved in an accident that causes $2,000 in damages and you have a $500 deductible, you’ll need to pay $500 before your Los Angeles, CA car insurance policy will kick in and cover the other $1,500. While deductibles can vary, $500 is the average, and the higher the deductible is, the lower the premium will be. Additionally, some types of car insurance don’t use deductibles.
- Coverage limits. As the term suggests, coverage limits refers to the maximum amount your insurance company will pay out. You are responsible for any damages that exceed the coverage limits. For instance, if you’re responsible for a collision that caused $10,000 in damages to the other vehicle but the property damage limit on your liability policy is $5,000, your insurer will pay out the $5,000, and you’ll need to pay the remaining $5,000 out of your own pocket.
- Claims. An auto insurance claim is a request made to an insurance company for compensation when someone is injured or property is damaged in an accident. To illustrate, if you drove into a pole and caused $1,500 damages to your car, you’d file a claim with your Los Angeles, CA car insurance company to request compensation for the repairs.
Factors That Impact Auto Insurance Premiums
As explained above, the premium is the amount you’ll pay for your auto insurance coverage. When you’re researching car insurance near you, different companies will offer different rates. Why? In a nutshell, Los Angeles, CA car insurance companies gather a collection of data to determine the risk of insuring you and the likelihood that you’ll file a claim. When insurance companies calculate quotes, they’ll take this information into consideration. Each company weighs the data and calculates the risks of insuring drivers differently; hence why they offer different quotes.
With that said, here’s a look at some of the factors that car insurance companies take into consideration when determining your premiums.
- Location. Your location has a big impact on car insurance premiums. Believe it or not, a distance of just a few miles can make a big difference! That’s because geographic location has a big impact on the risk of insuring vehicles and drivers in specific areas. Insurance companies consider several factors to assign a risk value to a location; the number of vehicles that are stolen, how many accidents occur per person, and the average age of those who reside in the area, for example.
- Experience. Whether you’re 18 or 63, if you don’t have a lot of experience behind the wheel, your premiums will be higher. The reason is simple: less experienced drivers are at a greater risk of getting into accidents and filing claims than those who have been driving for years.
- Age. While inexperienced drivers are considered a higher risk no matter how old they are, age does impact car insurance premiums. An inexperienced 17-year-old driver is considered more of a risk than a 42-year-old who just got his license. Why? Because the 42-year-old is more likely to be more cautious when they’re driving and thus, less of a risk than a newly licensed 17-year-old, who may be more daring.
- History. Insurance companies will also assess your driving record when they weigh the risk of insuring you. If your record shows tickets, accidents, and DUIs, your premium will be higher than if your record is completely clean.
- Claims. Los Angeles, CA car insurance companies also look at your claims history, including the type and the number of claims that you’ve made. For example, if you have a lot of at-fault claims on your record, you may be hit with a surcharge.
- Lapse in coverage. If you’ve been previously insured and have had a lapse in coverage, you’ll probably be quoted a higher premium than if you always kept your past policies current. That’s because some Los Angeles, CA car insurance companies consider drivers who have had lapses in coverage higher-risk drivers.
Looking for Car Insurance Near You?
When you’re researching “car insurance near me”, be sure to include Lionel Sandoval on the list of companies you contact. Our full-service Los Angeles, CA car insurance company offers the most comprehensive coverage at very affordable rates, and we’ll be more than happy to further explain the information discussed above. We’ll gladly answer any questions that you may have, and we’ll give you a fast and free price quote, too! Call 323-285-2442 to chat with us today!
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