An insurance policy is: important to protect Californian against property and life loses . In some case it is a mandatory law to obtain insurance policy. For instance in California it is unlawful to drive without insurance. It is a risk management factor mainly designs to protect you from risk. The insurance rate has being determined for any policy holder by risk and coverage, which also called: “Premium”. Premium coverage depends on the policy holder needs, and it’s appraising by insurance company base on risk control involved with each individual.