What They Don't Teach You in High School

7 CYA = Cover Your Automobile! Now is the time to learn about the different types of coverage available like liability, comprehensive, collision, medical payments, and uninsured motorists. It’s too late to discover you didn’t have the right coverage or you didn’t understand the coverage you had when seeing your smashed up car in the tow yard. Buying auto insurance is a lot like going to a cafeteria, in that you pick and choose what coverage you want cafeteria-style. Since there is no such thing as “full coverage,” it is important to gain a working knowledge of all the coverage options. Each element of your policy will protect you in a different way. Whether you are at fault for an accident, have property damage to your car, or sustain bodily injury, the coverages you choose protect you differently depending on the circumstance. California requires that you carry minimum liability limits, while other coverages are optional. Loan companies usually mandate that you carry comprehensive and collision coverage as a condition of your car loan. Know the insurance requirements of your loan before you shop for insurance. Shop ’Til You Drop! Be careful not to sacrifice the insurance coverage you need to save a few bucks. Sticking to a budget is one thing, but scrimping on auto insurance is a bad place to cut corners. When it comes to your safety and financial future, you have to play it smart. It’s not easy to get a good job, get your own apartment, and still be responsible for other obligations such as auto insurance. This is the main reason why you should shop around. There are a lot of great insurance companies that offer excellent coverage at competitive prices. It is a good idea to compare 4 to 5 companies when shopping for insurance. Have the agents or companies quote similar coverage, limits, and deductibles as much as possible, so you can compare apples to apples. Make sure to visit the California Department of Insurance (CDI) website at www. insurance.ca.gov and compare the complaint information of the companies you contact for quotes. With complaint and premium information, you will be able to make the best decision possible.