California's Minimum Liability Limits Set in 1967;   An Insurance Check-Up Helps Ensure That Your Policy Matches Needs

 
In the 1960s, car buyers spent about 25 percent of their $8,000 median income on a new car. Today, consumers can expect to pay $27,000 for a new automobile - more than half of the median $48,000 U.S. salary.  

Times have changed, but has your insurance?  Asks the Insurance Information Network of California (IINC).  According to IINC, today's minimum liability limits for auto insurance were established in 1967, when financial responsibility laws were adjusted to meet the increased cost of living.

Having adequate liability insurance is especially important. From 1967 to 2002, the average auto damage claim increased from $241 to $2,564 nationally, and bodily injury claims grew from $1,432 to $10,138.

With such dramatic increases in costs over the years, car owners should assess whether their insurance policy meets their current financial protection needs. Increasing the liability coverage provides added financial protection with only a marginal increase in the annual premium.

"Drivers run the risk of a lawsuit if found liable for an accident," said Candysse Miller, executive director of the Insurance Information Network of California. "Your insurance should reflect your actual risk - the more you need to protect, the more insurance you should carry."

Car owners with substantial personal assets to protect may want to consider purchasing an umbrella policy, which provides coverage for losses above the underlying policy limits. Drivers should work closely with their insurance company or agent to determine the best possible individual policy to meet their needs. 

Other adjustments may be made to an insurance policy to help reduce costs. Increasing the deductible, consolidating auto and homeowners policies with one company and maintaining a clean driving record can help reduce insurance premiums. Drivers should also be aware that the price of auto insurance can vary by hundreds of dollars from company to company. That's why they recommend doing business with an Independent Insurance Agent / Broker.  A ten minute call to your Broker can compare the most competitive rates of companies offering insurance in your area.

This news release is brought to you by the commitment and assurance of the A.D. Dern Insurance Agency, Inc., keeping you up to date and aware of the ever changing California Insurance market place. Continue to check back with us for other insurance articles of interest.

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