Does Your Los Angeles Car Insurance Cover Acts of God

If something is declared an act of God, what exactly is that?  Most insurance companies define it as, "an unavoidable catastrophe caused by nature" and "something that alters events in a way outside of human control." As you may expect, it has nothing to do with believing a supreme being is a causal factor, but simply refers to unexpected situations and disasters that cannot be controlled, usually related to the natural world. When it comes to insurance, we tend to instead think of acts of God as earthquakes, floods, or fires that destroy our homes and possessions. But what about cars? Do you know where your auto insurance policy stands on acts of God? What if tornado winds flip your car over, a lightning strike starts it on fire, or it is crushed by a stampede of wild animals? 

In reality we purchase insurance to protect us from the possibility of an unlikely occurrence, and most insurance companies no longer use the expression act of God, referring instead to specified perils. The concept of risk assumes that individuals will take a measure of responsibility and try to avoid perils where possible. An act of God largely assumes that such measures cannot be taken, as the occurrence is truly outside of one's control. In most cases, negligence is not involved, and drivers cannot be held liable for a loss that occurs due to an act of God. However, some so-called acts of God or nature can be avoided and damage or loss prevented. If you live in a flood plain or along a seismic fault line, your home and vehicle insurance may not cover damage from an earthquake or flood, since these are common and not unexpected events that can be predicted with some degree of certainty.

Most vehicle policies are not limited to coverage only while you are driving. They provide collision, liability and comprehensive coverage, the latter generally covering loss that occurs while your vehicle is standing still. The comprehensive portion also covers damage when you hit a deer, hail or rocks smash your windshield, or your car is damaged by a tree that blows over in a storm. Occasionally collision coverage may apply, too. For example, if you are driving your vehicle and you brake to avoid a gap that opens up in the street, causing the vehicle behind to rear-end you; or during an ice storm another driver loses control of his car and it slides into your vehicle. 

In most cases, your vehicle's comprehensive policy will cover natural catastrophes or acts of God. However, although the comprehensive portion of a policy is generally fairly low cost, many people try to lower their premiums by carrying only basic coverage, keeping a high deductible, or skipping comprehensive coverage completely. When an unexpected act of God or nature strikes, this can mean significant out-of-pocket costs or complete loss of your means of transportation. So how do you decide whether it is worth the cost of additional coverage? Predictability is one factor. For example, if you live near a hurricane-prone area, or if you've just moved into a lovely property on the San Andreas Fault line, you may want to alter your auto policy accordingly. The value of your car and replacement cost are also factors. If you drive an old beater, it may not be cost effective to pay the extra premium, although you may want to take into account your willingness to use public transportation until you can afford a replacement. If you still owe money on your vehicle, having no comprehensive coverage could mean you end up making payments on a vehicle you no longer have.

Acts of God are random uncontrollable situations that can strike anyone, anywhere, anytime. It's important to know what your Los Angeles car insurance policy says about coverage and exclusions. Don't assume coverage. Contact True Rate Insurance at 855-735-1600 to learn more.

Usage Based Los Angeles Car Insurance Policies

The main factor that sets usage based car insurance policies apart from regular car insurance policies is how the premium for usage based policies is determined.  The amount of premium paid for usage based car insurance policies is dependent on may difference circumstances including,  the type of car you drive, the amount of hours you spend driving, the distance covered while driving, the amount of traffic on the roads you use, how hard you brake and how smoothly you go around corners.

When using a usage based insurance cover your car is fitted with a gadget which is commonly referred to as a black box which is used to determine your driving patterns. One of the situations where usage based policies should be adopted is when you pay for insurance but rarely use your car. Since the premium paid for usage based policies is determined by the number of miles you cover in your car, low mileage should translate into cheap insurance premiums.

Another possibility which favors the adoption of usage based insurance is when you are in a group which is considered by insurance firms as accident prone. Insurance companies divide customers into groups depending on characteristics such as age, sex and marital status. Statistically some groups are more likely to be involved in accidents than others. You may fall into a group which is considered to be more prone to accidents thus forced to pay high premiums despite being a good driver. In this situation, a usage based policy can help reduce the amount of premium you pay.

One of the advantages of usage based policies is that it encourages responsible driving. Since the premium is calculated using real-time data from vehicles, drivers are highly motivated to drive more responsibly in order to reduce their premiums. Usage based policies also help conserve the environment by discouraging unnecessary driving.

Pay as you drive policies are implemented in several ways using different gadgets to monitor your driving patterns.  The first method involves using a GPS fitted device which is used to monitor the location of your car, and your driving patterns. The main drawback of using GPS based systems is the violation of the driver’s privacy by recording their whereabouts.

The second system attaches to a vehicles on-board computer, and it can monitor your driving patterns without violating your privacy. Devices attached to your vehicles computer can be restricted from accessing your location data. This can guarantee your privacy and still collect the required data.

Give True Rate Insurance Agency, Inc. a call at 855-735-1600 today to see how a usage based Los Angeles car insurance policy can benefit you. Our agents are ready to help you find the Los Angeles car insurance policy that fits your needs, and your budget.

How Much Should I Cover my Home for?

It is difficult to decide just how much insurance you need to have on your home to keep your family financially protected. But the actual process of selecting appropriate figures is much simpler than you might think if you break the idea of insurance down and apply its real purpose to your individual circumstance.

 Examining the Objective of Homeowners Insurance

 Most of the time, the aim of the homeowner is to make sure that they have adequate insurance coverage to be reimbursed should their home be completely totaled during an insurable event. Being made whole is always chosen to being given half the value of your home-which would mean that you must either supplement your insurance benefit in order to return to your lifestyle or that you must reduce your cost of living.

 In addition to covering the value of your home it's likely that you want to insure the value of your contents as well so that you are not made to cash out retirement and other savings in order to purchase furniture, clothing and other needs.

 Lastly, covering antiques, artwork and other valuables protect your interest in these pieces. While an emotional bond to your belongings can never be fully replaced, the monetary worth of the item and the money you've put into it, can.

 What Goes Into Being Made "Whole"

 You might think that being made whole by your insurance carrier means that you will get the sale value of your home so you can fix up or purchase another, similar home. But there are actually many other determinants involved in being made whole including:

Debris elimination: If the insurable event left debris around your home, this must be removed before reconstruction can start. This is an extra expense that might exceed the value of your home but is important to begin the process that will make you complete.

 Following building codes: Over the years, as building materials change, the required codes for building are updated too. The original windows that might once have been adequate may not be wind resistant enough for your local building codes, so rebuilding your home may incur many costs that surpass the true value of your former dwelling.

 Catastrophe awareness:  If a natural disaster is the result of your insurable event, then it's unlikely that yours is the only home affected. That means that construction firms will be overwhelmed and may increase prices to keep up with demand. These inflated costs may even exceed the limits on your policy. When calculating the replacement cost of your home, you will want to keep this in mind.

 Figuring Out the Right Amount for you

 All of this information may do nothing more than make you concerned that you don't have enough home insurance coverage. But being intimidated may lead to inaction, which is the worst step you can take. Alternatively, develop a plan of action for calculating a reasonable amount of home insurance for your family.

1. Begin by getting a real estate appraisal. While this might be costly, it can give you an accurate idea of the value of your home and the limits you should select. 
2. Work with your agent: Your insurance agent can give you an estimate of the insurance company's replacement cost for your home. A program by Marshall & Swift instantly measures data including location and building costs and determines your likely replacement costs. This data could change annually so it's important to ask your agent for updates when you renew your policy.
3. Survey homebuilders: No one knows current prices for home building quite like those companies that are actually doing it. Call a local home builder and tell them that you want a valuation so you can get suitable insurance coverage. They may charge for the estimates.

Remember, protecting your family's largest and most important investment is your main concern when buying insurance. While you may be satisfying the requirements of a lender by taking out a policy, that should not be your only reason for doing so. Ensuring that you and your family will have some financial recourse should you encounter an insurable event should be your highest priority. Call True Rate Insurance today at 855-735-1600to find the best Los Angeles home insurance to fit your life and budget. You can count on True Rate Insurance to put you first!

Busting the 5 Common Myths About Auto Insurance

It can be overwhelming to shop for auto insurance, given the number of insurance agencies and the wide array of products available. From online price wars to cash incentives offered by some of the biggest auto insurance brands, it’s not uncommon for a vehicle owner to make a decision based on misinformation, rather than facts. Despite the great effort that auto insurance companies make to educate consumers about coverage information, there still seem to be a few myths circulating about car insurance that confuse people.

Let’s take a closer look at these auto insurance myths and bust them once and for all, so you can get the best vehicle coverage based on truth.

Myth #1 – Red cars, older drivers, and teens get charged more for auto insurance.

These are all common misconceptions in regards to buying auto insurance. In fact, owning a brightly colored car, being an older driver, or even a new driver does not mean you will pay a significant amount more for the same coverage other drivers get. Statistically, drivers who have safe driving records will be charged accordingly. However, if you are a grandparent teaching your teen grandson how to drive your red convertible, use the same caution you would in any other driving scenario to avoid a spike in your premiums.

Myth #2 – If I switch car insurance companies, I’ll get penalized.

Insurance companies have wised up to the concept of loyalty programs, therefore they have offered incentives for safe drivers who stick with their company. However, insured drivers may worry they will lose out on valuable discounts if they switch to another company. Truth is, the new company has discounts too and you’ll soon benefit from those. Just check first before switching.

Myth #3 – High premiums mean better coverage.

Paying more for auto insurance does not mean you will get a higher level of coverage. This is because rates can vary widely based on a variety of factors, some of which are tied to geography and the model of vehicle you drive.

Myth #4 – Auto insurance only covers damage to your car.

While most auto insurance policies make provisions for damage to other vehicles during an accident (liability insurance) they do not automatically cover damage to your car and the associated repair costs. To get your vehicle covered, you need full coverage, also known as comprehensive auto insurance.

Myth #5 – Your personal car is automatically covered if you are self-employed.

If you are self-employed and using your vehicle for work related purposes, you are not automatically covered. Consider the kind of work you do, how you use your vehicle for business purposes, and if you provide transportation to others. Then talk to your auto insurance company about getting additional business liability coverage.

Dispelling these myths and others is often simply a matter of picking up the phone to speak with a knowledgeable auto insurance agent. If you'd like to save yourself from the hassle of buying insurance, just visit the True Rate Insurance website or give us a call today at 855-735-1600 to find the best Los Angeles Car Insurance policy for you.

Should I Let my Friend Drive my Car?

If you’re wondering what exactly your auto insurance covers when it comes to other people driving your car, that’s perfectly understandable. Questions such as, “Should I let my friend drive my car?” and, “Does my insurance cover other drivers too?” are very common. By better understanding what your coverage entails, it will be easier to decide if anyone else should be allowed behind the wheel of your vehicle.

If you’ve already signed up with a plan, take the time to study the terms and conditions thoroughly and learn exactly what you’re covered for. This is particularly important when it comes to lending your car. As different plans can often differ greatly, learn everything about your auto insurance coverage and understand the definitions and rules of your policy. If you feel that this particular point has not been made clear, call your insurance company and ask for clarification. No matter what you do, don’t let anyone drive your car before you know for sure that you’re both covered.

Liability auto insurance is the type of coverage that is attached to one specific driver, no matter what car you’re driving. This way, if a person has a driving license and is covered by liability insurance, he can drive whichever vehicle he chooses and still be under the same policy. If you’re trying to decide whether you should let your friend drive your car, ask what kind of coverage he has signed up for and this will automatically tell you whether you should go ahead and allow it.

Comprehensive auto insurance is a cover plan attached to a specific car. The same goes for collision coverage as well. These two policies will cover any damage that occurs to the vehicle, but will not cover another driver that you let behind the wheel of your car.

Before allowing anyone to get onto the passenger’s seat, it is crucial that you know whether or not he or she is covered by your car insurance. Policies differ, so it is up to you, the owner of the car, to make sure that the driver is insured. For this reason, when you’re looking for the right plan of auto insurance for you, make sure you ask what happens in the case that someone else drives your car and gets involved in an accident. Ask your agent to clarify whether the plan that you’re signing up with will cover any driver or just you and you will know whether you can let a friend drive your car after a night out.

Visit the True Rate Insurance Agency website or give us a call at 855-735-1600  today for more information on how your Los Angeles car insurance policy can work with your friends.

Auto Insurance for Your Leased Car

You have leased a car, but how do you insure it? It might be easier to stick with the same insurance company that you use for the car you own, but it may not always be the most cost effective choice for your coverage. Sometimes it may be best to look at other companies and see if you can find lower rates.

Leased cars are a little different from cars you personally own. A leased vehicle still belongs to the leasing company. They want to make sure their car will be covered in the case of damaged, totaled or stolen. Usually, coverage is required to pay for the difference between what your insurance company pays and the balance on your leased vehicle at the time of the accident or damage. The insurance coverage that covers this difference is called GAP Insurance, Guaranteed Auto Protection, and covers any remaining amount between what the insurance covers and what remains on the balance of the car. If your leasing company is BMW Financial Services, Chrysler Financial or any other finance division of an automaker, then it is possible your GAP insurance will be offered by the same lease company.   

However, you have no obligation to accept the GAP insurance that is included in your lease agreement. By shopping around with different insurance companies, you may find equal coverage for a cheaper rate. Invest some time by shopping around between different insurance companies, including the insurance company you have used for cars you own.  But, always be sure that your leased vehicle is completely covered in case of an accident. The best coverage is the one that fully covers you.

If you have questions about insurance for your leased vehicle and Los Angeles car insurance, visit the website of True Rate Insurance or call us at 855-735-1600. When you are looking for something as vital as insurance, you want a company like True Rate that you can count on to help you build the right plan at the best possible price.

Car Insurance in Los Angeles

What is exactly is car insurance?

Automobile insurance is simply a contract that helps pay for certain types of financial losses or obligations resulting from the use or ownership of an automobile. To obtain this contract (insurance policy), you pay a specified amount of money called a premium. In return for the premium paid, the insurance company agrees to pay certain expenses and legal liabilities depending on the terms of the insurance policy. Having the right insurance coverage may prevent you from suffering a large financial loss in the event of an automobile accident.

The responsibilities of owning and driving an automobile include following the financial responsibility laws under the Vehicle Code. The most common way to satisfy the financial responsibility for operating an automobile in California is by purchasing automobile liability insurance.

If you choose to meet your financial responsibility by purchasing liability insurance, the DMV outlines minimum limits that you must purchase under Section 16451 of the Vehicle Code.

Financial Responsibility Laws

The statutory minimum limits of liability insurance in California* are as follows:

Bodily Injury Liability

• $15,000 for death or injury of any one person, any one accident.
• $30,000 for all persons in any one accident.

Property Damage Liability

• $5,000 for any one accident.

There are four ways to accomplish financial responsibility:

1. Coverage by a motor vehicle or automobile liability insurance policy;
2. A cash deposit of $35,000 with the DMV;
3. A certificate of self-insurance issued by DMV to owners of fleets of more than 25 vehicles; or
4. A surety bond for $35,000 obtained from an insurance company licensed to do business in California.

All California drivers and owners must have at least the statutory limits of minimum liability insurance or an approved alternative way to pay for injury or property damage they may cause.* Penalties are very severe for non-compliance with this section of the vehicle code.

When your car is in an accident for which you are found legally liable, bodily injury (BI) liability covers your liability to others for injuries to them. Property damage (PD) liability covers your liability for damage to someone else's property.

A policy with BI of $15,000/$30,000 and PD of $5,000 will pay out as follows:

• The maximum limit for one person's injuries, medical expenses, etc. is $15,000 under the bodily injury portion;
• If two or more people are injured, the maximum limit for the accident will be $30,000;
• The maximum limit for damage to other people's property (their car, their fence, etc.) is $5,000.

Comprehensive coverage (other than collision), uninsured motorist, medical payments and collision insurance are not required by law.

(Source)
*See California Low Cost Automobile Insurance exception.

Los Angeles

Los Angeles was founded on September 4, 1781, by Spanish governor Felipe de Neve. It became a part of Mexico in 1821 following the Mexican War of Independence. In 1848, at the end of the Mexican–American War, Los Angeles and the rest of California were purchased as part of the Treaty of Guadalupe Hidalgo, thereby becoming part of the United States. Los Angeles was incorporated as a municipality on April 4, 1850, five months before California achieved statehood.


Nicknamed the City of Angels, Los Angeles is a leading world center of business, international trade, entertainment, culture, media, fashion, science, sports, technology, and education, and has been ranked the third richest city and fifth most powerful and influential city in the world. The city is home to renowned institutions covering a broad range of professional and cultural fields and is one of the most substantial economic engines within the United States. The Los Angeles combined statistical area (CSA) has a gross metropolitan product (GMP) of $831 billion (as of 2008), making it the third largest economic center in the world, after the Greater Tokyo and New York metropolitan areas. As the home base of Hollywood, it is also known as the "Entertainment Capital of the World," leading the world in the creation of television productions, video games, and recorded music; it is also one of the leaders in motion picture production. The importance of the entertainment business to the city has led many celebrities to call Los Angeles and its surrounding suburbs home. Additionally, Los Angeles hosted the Summer Olympic Games in 1932 and 1984. (Source)

At True Rate Insurance, we welcome your calls and questions at anytime – whether you are one of our customers, a prospective buyer or someone covered by another insurance company all together. Unlike some companies, we at True Rate Insurance will sit down and go over your questions on an individual basis – no strings attached. For honest, customized and stress-free Los Angeles car insurance advice, contact me, Engy Ramadan, at True Rate Insurance today. Simply call 323-735-1600.