Like most California residents, you probably rely on insurance to protect your finances in the event of a catastrophic event. You may even carry insurance on a small business along with your homeowners, auto and life insurance policies.

At the beginning of 2020, many new insurance laws took effect in California. According to the California Department of Insurance, most of these regulations provide additional protections for consumers. Under these new laws, there may be a smaller chance that your insurance provider will reject your claim.

Pet insurance

Information from the California government’s insurance department states that one of the new laws increases transparency in the pet insurance industry. Pet owners who purchase insurance policies may now have access to contact information for the underwriter, broker or agent, facilitating easier communication. Other portions of the law make it harder for insurers to reject claims due to issues such as medication brand names.

Auto insurance

Changes in auto insurance laws now give you the right to choose between a repair or a cash payment for your car insurance claim. This means that you will still get financial value from your claim even if you choose not to repair your damaged vehicle. Another updated law makes it easier for a student to access auto insurance when he or she lives at the same address where an adult claims him or her as a dependent.

Investments in local communities

A few of the other changes to insurance laws help the insurance industry invest in local California communities. For example, the California Organized Investment Network encourages insurance companies to support various social programs that increase environmental and economic opportunities in underserved communities. Another bill helps connect the state’s insurance market with small business owners, especially those underrepresented sectors, such as minorities and veterans.