California is probably one of the best states to live in the United States. In addition, driving a car in the streets of California can be a very pleasurable event as compared to the other states. However, this driving experience can be enhanced, especially if you have a comprehensible auto insurance from a reputable California Car Insurance Company.
Getting a comprehensive auto insurance in California is a little different than getting an auto insurance in other states. Although the basic procedures for obtaining an auto insurance are the same, the State of California regulates the process of getting an auto insurance regularly. The Department of Motor Vehicles in California works in tandem with California Department of Insurance, so that proper insurance regulation is achieved in the State of California.
One such important difference in the State of California is that the Insurance companies are grouped in to two categories. These two categories in the State of California are admitted auto insurance carriers and nonadmitted auto insurance carriers. Now, the Admitted Auto Insurance carriers are regulated by the California Department of Insurance and they are strictly controlled. These insurance companies have oversight from the state government, so that any unethical business practices are not allowed. In addition, the insurance premiums that you will pay, as well as the coverage amounts for bodily damage and vehicular damage per accident are clearly defined by these regulations. Moreover, these admitted insurance carriers have to obey these regulations, as well as financial limits or they will lose their license to practice insurance in California.
Perhaps another important point pertaining to admitted carriers in California is that your money is guaranteed by the State of California. This means that if your accident or insurance claim is not solved by the Insurance Company (due to financial unavailability), then your claim will be adjusted and paid by a special fund that is established by the California Department of Insurance. This means that you are guaranteed to get a proper service from your auto insurance company, especially is you choose an admitted carrier in California.
Of course, if you are looking for a cheaper price, then you may opt to choose a non admitted insurance carrier. These types of companies are not regulated by the State of California and thus they are able to get any price that they want. Moreover, the coverage and the liability insurance can be any amount and it may not conform to the standards of the Sate of California. In addition, some of these non admitted carriers may disappear and when you have a claim, then you may have trouble acquiring funds from these types of companies. However, if you plan to work with a non admitted carrier, then it is essential for you to do some intense research and see their references. You should make sure to get opinions from other customers, so that you will be able to see whether that particular insurance company can be suitable for you.
