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RANCHO CUCAMONGA, CA, May 06, 2011 /24-7PressRelease/ -- Working out the specifics of an auto insurance policy can be complicated, especially when it comes to deciding how much coverage to have on a policy. While it may be tempting to go with a plan that meets only the state-required minimums, the consensus throughout the industry is that many states' minimums are low and could prove insufficient in the event of a serious accident.
In a new FAQ, the writers at OnlineAutoInsurance.com discuss what sorts of coverage are included in policies that provide the minimum levels of protection by law and how they might fall short.
For an example of when minimums could prove insufficient, they look at California's property damage minimums. Californians are required to carry only $5,000 in property damage liability (Source: http://www.insurance.ca.gov). That may be more than enough for a small accident. But in the event of a more serious accident with a relatively expensive car, the policyholder could end up being on the hook for thousands of dollars.
In addition, no state governments require drivers to get insured for the cost of repairing their own cars after an accident. That means if a policyholder causes an accident and his or her car has thousands of dollars in damage, they have to pay for those repairs out of pocket.
To get insured for damages like this, a driver would have to get collision coverage added on to a policy. According to the National Association of Insurance Commissioners, the national average cost for collision coverage was about $300. This price can vary greatly, though depending on the vehicle type. To find out how much it could cost to add this to policy, consumers can go online to get insurance quotes without personal information required.
To learn more about this and other financial protection issues, readers can go to http://www.onlineautoinsurance.com/quotes/no-personal-information.htm where visitors will find informative resource pages and a quote-comparison generator that can help users find the best rates for a policy.
To access the full FAQ, visitors can follow the "Questions" link located at the top of any page on the site.
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