El Monte Car Insurance
All residents in El Monte who own a vehicle registered in the beautiful state of California are required to purchase car insurance from a carrier that is licensed by the Department of Insurance to do business in the state.
If you are in the process of buying a car, or you own a vehicle and you are buying insurance for the first time, learning about auto insurance requirements and rates is imperative. Read this beginners' guide to El Monte car insurance, and you will learn what you need to know to make an informed purchase.
What type of car insurance is required in El Monte?
Auto insurance is a financial product that protects your finances so that you do not have to pay out-of-pocket for the injuries that you cause in an accident.
While the product itself will protect your assets and your wages, the benefits that you are required to carry in the state of California protect a third-party and are not paid out to you.
You do, however, have the option to buy additional coverage to provide you with protection if you want to purchase more than just the state minimum car insurance requirements.
To legally operate a vehicle on public roadways in El Monte and all throughout California, California code states that you must have liability insurance.
The reason why you must carry liability insurance is to prove that you are financially responsible for any damages that you may cause when you are operating a motor vehicle.
If you are caught driving without liability insurance, not only can you be cited and fined, you may also be taken to civil court for damages that you cause while uninsured. Here is a breakdown of the third-party liability insurance requirements:
Liability Insurance Requirements
All drivers must be able to pay for the damages that they cause in an accident and this required is referred to as a financial responsibility law.
While you can never predict when you will get into an accident, or even how much damage you might cause, state officials have set a minimum amount of car insurance coverage that you must carry to prove that you are financially responsible.
Liability Insurance is broken down into two different individual coverage limits referred to as Bodily Injury Coverage and Property Damage Coverage.
Bodily Injury Liability is a third-party coverage that will pay for the medical bills and other expenses that are incurred by the injured party when you are at-fault in an accident. Property Damage will pay for the costs to repair or replace other vehicles and property when you cause the damage.
The property cannot be owned by you for benefits to be paid and limits are per accident and not per item damaged.
Understanding Bodily Injury Limits
Bodily Injury Liability limits are written on a per person and a per accident basis. In the state of California, you must have no less than $15,000 per person, up to $30,000 per accident in Bodily Injury coverage. This is often written on a policy as $15,000/$30,000 or 15/30 when shortened.
Understanding Property Damage Limits
Property Damage Liability limits are written on a per accident basis. It will pay to repair or replace property, up to its fair market value in El Monte.
Some of the types of property that are covered include vehicles, landscaping, fences, buildings, street signs and light posts.
The property that is damaged must be owned by a third-party and cannot be owned by any member of your household to be covered.
California Insurance Code states that you must have no less than $5000 per accident in Property Damage coverage. Many times, the limit is written directly after the Bodily Injury limit. This means that the quote may be written 15/30/5 when you carry the minimum liability requirements.
Other El Monte Car Insurance Requirements
You may only be required to carry liability insurance, but you must be offered the option to buy Uninsured Motorist Protection (UM) and Medical Payments (Med Pay) by any insurer you are retrieving a quote from. Each of these forms of protection will pay for your damages in certain scenarios.
While they must be offered, you can reject the coverage options in writing if you would not like to pay additional premiums. Here is a breakdown of what UM and Med Pay cover:
What does Uninsured Motorist cover?
Did you know that the Insurance Research Council has calculated that 14.7 percent of drivers in California as a whole are uninsured?
This means that in El Monte, where there is a population of approximately 115,700, 1 in every 5 drivers or about 17,000 drivers do not carry liability coverage. Uninsured Motorist protection is designed to protect you so that you can pay your medical bills if someone without coverage hits you.
You can carry up to your Bodily Injury limits, but must be offered at least $15,000 per person, up to $30,000 per accident in UM by carriers.
What does medical payments cover?
Medical Payments will also protect you, but it provides you with reimbursement for your medical bills no matter who is deemed at-fault for an accident.
If you are at-fault for an accident, the coverage will pay for your medical bills and your passengers' treatment expenses as well. If you are not at-fault it can also help you get immediate care when you have no insurance or a high deductible plan.
All applicants must be offered $1000 per person in Med Pay, but have the option to reject it in writing.
How much coverage do you need?
Now that you know how much coverage you must purchase, it is wise to learn how to estimate how much coverage will be adequate for you.
The liability requirements do not mean that you will have sufficient coverage to pay for damages that you cause in any accident.
In fact, these limits may not provide enough coverage for even a minor accident. You can review the limits that are available to you through the coverage worksheet, and then decide which limits fit your budget and give you peace of mind.
Most agents recommend that you carry at least $100,000/$300,000 in Bodily Injury and an additional $100,000 in Property Damage.
The higher limits may not cost as much as you might think because of the discounts offered to policyholders who carry higher limits. Considering the fact that El Monte has a much higher fatal accident count than the national average, carrying higher limits is recommended.
Other Coverage Options You Should Consider
In addition to liability, uninsured motorist, and medical payments, you should consider buying coverage to protect your vehicle and your pocketbook.
If your vehicle is leased or financed, your lessor will require you to carry physical damage coverage to pay for the repairs or the replacement of the car when a claim is filed. Here is a brief description of coverages you can buy:
- Comprehensive - Will pay to repair or replace your vehicle if it catches fire, is stolen or is vandalized.
- Collision - Will pay to repair or replace your vehicle if it is in an accident minus your collision deductible.
- Rental Reimbursement - Will pay for a rental car if the covered car is being repaired for a covered claim.
- Gap Coverage - Will pay off remaining balance of your loan if you owe more than the fair market value of your car because of depreciation.
How are your rates determined in El Monte?
When you begin to compare premiums in California, it can be very helpful to know what factors will affect your personalized rates.
Not one person's rates in El Monte are the same because there are so many different variables that can raise or lower your rates. You may have things in common with your friends or your family, but ultimately there will be some variables that are different.
Here are some of the factors that will affect your rates:
- Age and Gender - Young drivers pay more than experienced drivers. Males pay more than females, especially when they are young. This is because statistically, youthful operators and males file more claims.
- Years of Driving - The more experience you have, the more defensive you drive.
- Type of Vehicle - Your vehicle's claim record, safety record, and cost to repair can affect rates.
- Usage and Mileage - Drivers who drive for pleasure pay less than commuters.
- Territory - The number of claims in El Monte can affect your rates.
- Driving Record - Tickets and accidents make you a higher risk.
The best way to find the most competitive El Monte car insurance premiums is to comparison shop.
By using an online rate comparison tool, you can gain access to rates with several different insurers at once. Decide which coverage is adequate, research insurers, and buy the most affordable auto insurance plan.
Search El Monte coverage options now with our FREE quote tool below!