Before You Come to Caltech
Automobile Insurance
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If you own and drive a car, automobile insurance is mandatory in California.
Before you drive – even if you are a new driver practicing to take the driving test – you must have car insurance. An automobile insurance policy must provide a minimum coverage per accident of $15,000 for injury/death for a single person, $30,000 for injury/death of more than one person, and $5,000 for property damage.If you move to California from another state, you must be aware that many out-of state insurance companies are not authorized to do business in California. Before you drive, you need to find out from your insurance company if you are covered in the case of an accident in California. Los Angeles has some of the highest automobile insurance rates in the country. To get comparisons of various insurance companies and their rates, visit LowerMyBills.com or the State of California Department of Insurance web sites.
Even though you may have purchased or leased a car, you cannot drive legally in the state of California without liability (Third Party) automobile insurance. This insurance covers the cost of any injuries or damage you may cause if you are in an accident. If you take out a loan to purchase your car, you will also need to purchase comprehensive insurance. This insurance covers any damage to your car.
Securing liability and comprehensive insurance can be very expensive, especially if you have never driven before. First-time drivers can expect high insurance rates for the first 18 months. After that period, if your driving record is good, you can expect your rates to drop somewhat.If you drive in your home country and can produce a written proof of your good driving record, your insurance rates may decrease enormously. Remember to bring a translated certificate proofing you are a good driver for at least two years. As an example, for the same comprehensive insurance coverage with a $1,000 deductible, a driver with a proven safe driving record will pay $700 per year for insurance premium but it will cost a new driver or a driver without a safe record around $4,000.
There are many auto insurance companies to select from, including:
AAA (pronounced Triple A)
You may also choose to join the American Automobile Association (AAA) and find that it is worth the annual membership fee ($47 for one person) for roadside assistance service. Membership costs include 24-hour roadside assistance and towing if your car breaks down (four towings per year), free state and city maps, travel guide books, passport pictures, discounts for events, attractions, hotels and car rentals; DMV registration renewal services, and special rates for car and home insurances if you are a member. For more information, visit the AAA office located at 801 East Union Street in Pasadena.Note: Remember to bring your translated certificate of good driver for at least two years to get a discount on your car insurance.