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Are you living or planning to reside in California and have to take a decision on the type of insurance that you will need, this piece of information is a Must Read for you…
The major of Insurance that you will need are:
1. Health Insurance: Health insurance pays for expenses incurred for diagnosis
and treatment of covered medical conditions. There are many different types of health insurance plans available in California. Because you have a choice, it is important to choose the plan that best fits your specific needs, budget and lifestyle.
Also, make sure that you are aware of the state or federal agency that regulates the type of health care plan you purchase in case you experience questions or problems. The various policies that are available include: Indemnity Policies (Traditional Fee-for-Service Insurance), Preferred Provider Organizations (PPOs), Health Maintenance Organizations (HMOs or, Managed Care), Self-insured Health Plans (Single Employer Self-Insured Plans), Multiple Employer Welfare Arrangements (MEWAs). You can choose the individual policy or group policy (usually used by organizations to insure employees health) or government policy if you cannot afford the above policies.
2. Life Insurance: This is basically of two types: Term Plan and cash value plan (which are further divided into whole life insurance, universal life, variable life and variable insurance life.) Life insurance is available through agents, insurance through employer, mail order or Internet. While shopping for a good policy get all the guarantees in writing, do know the guaranteed payments, use index numbers to choose the most suitable policy for you, also find out the reliability and stability of the company before making the final decision on choosing the policy.
3. Automobile Insurance: Automobile Insurance is mandatory in California, the Department of Motor & Vehicle (DMV) requires liability insurance to register & operate a vehicle. The minimum liability that the driver has to pay in case of an accident for which he is at fault is 15/30/5: this means that you are liable for a minimum of $15,000 for bodily injury of one person, $30,000 for bodily injury of all person and $5,000 for property damage in any one accident when you are at fault. To protect yourself from the risk of this loss you can either purchase a policy from an insurance company or a cash deposit $35,000 with DMV or a certificate of self-insurance issued by DMV to owners of fleets of more than 25 vehicles; or a surety bond for $35,000 obtained from an insurance company licensed to do business in California. Comprehensive coverage (other than collision), uninsured motorist, medical payments and collision insurance are not required by law. Under California premium rating law insurance companies are allowed to set their own premium rates based on their past loss experiences and expenses. Sp it is important to scan and shop several companies before choosing the company that provides the most cost effective insurance to satisfy you needs. You can shop by collecting information from the brokers/ agent/ through telephone or websites.
4. Homeowners Insurance: Home is the most expensive personal asset owned by an individual and hence gives enough time to conduct a comprehensive research of the insurance marketplace before choosing your insurance company. The California Department of Insurance (CDI) provides several tools to help consumers who are shopping for residential insurance. In addition to consumer information guides, you can use the Homeowners Premium Survey, the Consumer Complaint Study, and Insurance Company Profiles to gather valuable information on residential insurance companies. Also, you may want to investigate coverage through the California Fair Plan, if you are having difficulty obtaining residential property insurance.
The bottom-line for obtaining best insurance is shop, shop & shop from different sources and make an informed judgment. Best of Luck!!!!
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