Cheap California insurance for auto

There are a lot of ways to save money on auto insurance. There are discount auto insurance schemes that you can take advantage of from your insurance providers. You will surely find a cheap auto insurance that will also allow you to save some money while also protecting yourself from damage. These are a few ways in which you can save money on your auto insurance.

• Few states may offer discounts for anti-lock breaks. You must find out if this discount applies to 2 or 4 wheel anti-lock break vehicle.
• Sometimes automatic seatbelts as well as airbags are also discounted.
• In addition many states offer a defensive driver class discount. This means that if a driver over 55 years of age completes a class for defensive driving, a class discount could apply.
• If you have multiple vehicles, then you may get budget car insurance where some providers may also offer discounts.
• In some cases, the insurance company may offer a safe driver's discount if you happen to have a safe driving history for the last 3 years at least.
• If you have been with an insurance company for long, they could offer you a renewal discount.
• Even students can get affordable auto insurance. If you are a student (unmarried) under the age of 25 years and you meet the grade requirements, you may become eligible for certain student discounts.
• The type of car that you buy may also be a factor for what affects the cost of auto insurance. The auto insurance quotes that you get for a luxurious car may be much higher than what you get for a simple automobile.

Getting a quote is very easy. Online auto insurance quotes are also available in case you do not have the time for an agent.

Cheap California Insurance – Auto Insurance Comparison steps

Most of the consumers do not shop for annual car insurance and do not do the comparison. I know I was one and if you are, don’t feel guilty. Shopping for auto insurance takes time and the different quotes can get really confusing. It was even more difficult in the past when you had to pick up the phone, call several companies and compare their quotes.

The times have changed a lot since then and now it is possible to complete an auto insurance comparison in less time than it takes to drink a cup of tea. How, you ask? Online, of course! Your auto insurance comparison can all be accomplished quickly and effortlessly if you boot up your computer and follow the steps outlined below.

Step 1. Have your basic personal information ready before you start. You should have: a copy of your current car insurance policy (so you can refer to current coverage amounts); the make and models of all cars being insured; a history of accidents or other car insurance claims over the past five years (for each driver being insured). It’s also helpful to know the approximate length of time you’ve been insured with your current company. You’ll get a better quote if you haven’t been switching around between companies.

Step 2. Now it’s time sit down at your PC and choose an online insurance quote provider. These are companies who have relationships with dozens, perhaps hundreds, of major auto insurance companies. By using an online quote provider, you aren’t limited to getting quotes from just one company. And we all know that competition results in lower prices, so it’s in your best interest to get quotes from as many different companies as is feasible. But limit the number of quotes you get to around six or seven, or you’ll burn a few brain cells trying to compare them.
Most online quote provides will match you with at least five different insurance companies. These companies can range from small independent agents who are located near you, to the very largest insurance companies who do business in all fifty states. Depending on the state where you live, you may also receive a quote from one of the strictly online companies like Esurance (but these companies are not licensed to provide insurance in all fifty states).

Step 3. Now it’s time to actually complete the online application. The good news — you only have to fill out one application in order to receive multiple quotes. Complete the application as completely and honestly as possible. The insurance companies will use the information you submit to provide their initial quotes, but they will verify all of your personal information before agreeing to a final policy. It’s important to remember that an online insurance quote will save you time, and probably money, but it’s not an opportunity to defraud the insurer.

Once your application has been submitted, all you have to do is sit back and wait for the quotes to start coming in. You’ll probably have the first one in your email box within the hour. Once you receive at least five quotes, you should have a pretty good idea of your best car insurance rate. If it’s been a few years since your last car insurance comparison, chances are, you’re looking at savings of about 20% on your car insurance. It is absolutely worth your time.

Good luck in getting you cheap auto insurance!

Cheap California Insurance – Earthquake insurance in California

It probably does not come as a surprise to you that less than 15% of California homeowners currently carry earthquake insurance, due to its high cost. The mortgage providers are not required to have earthquake insurance coverage. Most people wonder if earthquake insurance is really worth the high cost.

The state of California requires that all homeowner’s insurance providers to at least offer earthquake insurance (albeit, at a high cost). Until 1994, it was widely available – but the high damage costs of the Northridge earthquake resulted in 97% of homeowner’s insurance providers pulling out of the state the California. In response, the California Earthquake Authority was formed by the California legislator to provide earthquake insurance.

What Is the California Earthquake Authority, and How Does It Work?
The California Earthquake Authority provides two-thirds of the earthquake policies in California, sold through their member providers, like Allstate and State Farm. A homeowner purchases the policy through their regular insurance agent, but the policy is actually a CEA policy.

The CEA currently has about $7.2 billion to pay claims, which it states is enough to pay foreseeable damages (Loma Prieta in 1989 had $6 billion in total damages). If the damage claims are more than $7.2 billion, then each claim would be paid a prorated portion of their losses – unlike a regular insurance company, which promises to pay the actual damages under the insurance policy. The state of California cannot help pay the claims out of general funds.

The policies also have a high deductible – usually 15% of the value of the dwelling. In other words, your home must be damaged more than 15% of its value before the insurance starts paying. So, this insurance is not for cracks in the driveway – it is for significant structural damage to your home. The policy also pays for limited contents (starting at $5K) and loss of use (starting at $1500).

Why is it so expensive to carry Earthquake Insurance?
Insurance policy premiums are calculated based on probabilities – the probability that a house like yours in a neighborhood like yours will catch fire, or a driver like you will have an accident. With data from millions of homes, these probabilities can be calculated with reasonable accuracy. But, no one can reliably predict the probability that there will be an earthquake strong enough to damage your home.

And, as you can imagine, damages from an earthquake, flood, or hurricane, are widespread, over potentially thousands of square miles – instead of one or a few dozen homes, as in a fire. As such, the insurer would have to pay either zero claims, or billions of dollars of claims – too much variance to reasonably plan for or price accurately.

According to the USGS, there is a 62% probability that there will be an earthquake of 6.7 or greater (like the Northridge quake) in the Bay Area in the next 30 years. In my zip code (San Jose 95126), USGS calculates a 80% chance of a 6.0 earthquake and a 20% chance of a 7.0, in the next 30 years. Whether you consider that to be a high risk depends on your risk tolerance for earthquakes – I consider that a high risk of a moderate earthquake and a somewhat low risk of a terrible earthquake, over the next 30 years.

But like any issue involving real estate – it is all local. Where your home is actually located significantly affects your risk – bedrock, reclaimed land from the bay, soil type, nearby streams, actual distance from the epicenter – all can affect potential damage.

But of course, many earthquakes occur where the USGS was not even aware of a fault line – and we never know when or where it will happen, until it happens.

The big question is “Should I Obtain Earthquake Insurance?“
Factors to Consider:

• Could you afford to pay for the rebuilding your home from your own savings & investments?
• Can you afford to pay the high cost of insurance, indefinitely?
• Could make payments on your current mortgage and on a new loan to rebuild?
• Can you mitigate your potential losses by bolting your roof to the walls and the walls to the foundation, for example?
• What is your tolerance for the risk of an earthquake?
• What is the risks of your current home construction (type, age, foundation)?
• What are the risks of your specific location (soil type, distance to known faults)?

Is the cost of earthquake insurance worth it?
Let’s assume that you have a home that would cost $250K to rebuild, you will own the home for the next 30 years, and your earthquake premiums are $1200 per year. Over the next 30 years, that would be a total of $36,000 in premiums (assuming your premiums do not increase, to simplify calculations).

Instead of purchasing insurance, you invest the premiums in a diversified mutual fund. With an 8% annual return, you would have $135,000 (pre-tax) in year 30.* But of course, you only have that total in year 30, not in year one – meaning that if the earthquake happens tomorrow, you don’t have the money.

The deductible is another big turn off for many homeowners. The insurance pays only for large structural damage, not broken dishes or cracked driveways – meaning that it is less likely you will use it. However, be aware that you will not need to come up with the cash for the deductible – you may either opt to not undertake those repair or rebuilding costs, or you can apply for an SBA loan to pay for the deductible (assuming a federal disaster area is declared).

Why Not Just Get Federal Aid, or “Walk Away” and Let the Bank Have the Property?
The federal government would probably provide access to SBA loans, if the area is declared a federal disaster area (no small business required). However, the $200K maximum SBA loan may not be enough to rebuild your home – and, it is a loan that you need to pay back (in addition to your current mortgage).

If you have refinanced your mortgage, you have a recourse mortgage – which means that not only can the bank foreclose on the property in case of non-payment, the bank can also come after your personal assets and future income in case of non-payment. So you cannot just walk away, especially if you have a good income and some personal assets. The bank may help out by deferring payments for a few months, but you still must pay back the loan.