Baldwin Park Car Insurance
In Baldwin Park, all drivers who drive a vehicle that is registered in the state of California are required to carry auto insurance.
The auto insurance must be purchased from an auto insurance company that is licensed to do business in the state for the coverage to be deemed acceptable and sufficient by state officials and the Department of Motor Vehicles.
Auto insurance is a requirement not only to protect other parties, but to show that you are financially responsible when you get behind the wheel.
If you would like to know more about Baldwin Park car insurance requirements, penalties for driving without insurance, and how to find the best coverage, read this guide and become an informed consumer.
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What Coverage Types Are Required in Baldwin Park?
All residents of the state of California, including residents of Baldwin Park, must comply with state financial responsibility laws before they can legally operate a vehicle. Based on the mandatory insurance laws, drivers are only obligated to carry liability coverage.
Liability coverage will pay for the injuries and the damages sustained to a third party that you are considered negligent for when you are driving. Liability will not cover your own damages, but there are optional types of coverage that can be purchased to provide you with the protection that you need.
Liability Coverage
Liability consists of two individual limits: Bodily Injury and Property Damage. Bodily Injury will pay for the medical bills sustained by injured parties in the third-party vehicle. Property Damage will pay for damage to other vehicles or to property that you do not own. In California, you must carry the following limits at a minimum:
- Bodily Injury: $15,000 per person, up to $30,000 per accident
- Property Damage: $5000 per accident
Medical Payments and Uninsured Motorist
Liability is the only type of coverage that you are required to purchase in Baldwin Park, but all insurers who are licensed to do business in the state must offer both Medical Payments cover and Uninsured Motorist coverage.
Each of these must be offered to every driver in writing. They can be rejected, but you will be required to sign a waiver stating that you understand what you are rejecting before the coverages will be waived. If you do not sign these waivers, the minimum amount of coverage provided will be added to your policy. Before you sign any waivers, make sure that you understand how each coverage protects you.
What is medical payments?
Medical payments is designed to pay for the medical expenses that you and your passengers incur following an accident. One reason why this coverage is important is because it will pay for the bills no matter who is at-fault. Because so many people have difficulty collecting from a third-party insurer, it is wise to carry even a low limit of Medical Payments for your own sanity.
This ensures that you can see a doctor, even if you do not have medical insurance or you have a high co-payment and deductible.
What is Uninsured Motorist?
While all drivers are required to carry liability insurance in California, not all drivers choose to comply with the law. It may be risky to drive uninsured, but approximately 14.7 percent of drivers in the state take that risk. Ranked number 13 in the states with the highest number of uninsured drivers, California roads can be dangerous.
Because of this, all drivers must offer Uninsured Motorist Bodily Injury coverage at a minimum limit that matches the minimum limit of Bodily Injury coverage required.
Uninsured Motorist works much like Bodily Injury coverage does for third-parties. If you are hit by someone with no insurance or a hit-and-run driver, your Uninsured Motorist will kick in to pay for your medical bills up to the limits stated. If you do not wish to carry this optional coverage, you will need to reject it in writing.
What Coverage is Not Required in Baldwin Park?
Liability cover is required by state officials and physical damage coverage is not. Just because physical damage coverage is not required by the state officials does not mean it is not required by other parties.
If your vehicle is leased or financed, you are obligated under your contract as a borrower to carry physical damage insurance coverage on your vehicle. This is why your insurer will ask for a copy of your auto insurance policy to verify that you are protecting their asset until it is paid off and no longer theirs.
To satisfy the physical damage insurance requirements, you must carry comprehensive and collision cover with acceptable deductibles. Read on to learn more about comprehensive and collision coverage:
Comprehensive
Comprehensive will cover your vehicle when it is damaged from events like fire, theft, vandalism and collision with a live animal. The insurer will pay up to your fair market value to repair or replace your vehicle. Your deductible will be subtracted from the payment. Deductibles are between $50 and $1000 under the standard policy.
Collision
Collision will cover damage that is sustained in a moving accident, also known as a collision. If you are involved in an accident, your insurer will pay for your damage if you are at fault. It is wise to carry collision even if your vehicle is not financed if it holds significant value. Your damages must exceed the deductible before your insurer will pay.
Collision coverage carries higher premiums than comprehensive, which generally means that residents in Baldwin Park will carry higher collision deductibles. It is important to understand how your premiums may be affected when filing a collision claim.
Be sure to understand what the cost of the repairs will be and how much your premiums will go up for a period of 36 months before you make a costly decision.
Penalties for Driving Without Insurance in Baldwin Park
Believe it or not, you can be penalized for driving without insurance in Baldwin Park even if you are not caught by a law enforcement officer. In the state of California, the Department of Motor Vehicles uses an electronic insurance verification system that all licensed insurers must report to when a policy is purchased or cancels.
This means that the DMV is notified immediately when your policy cancels, and you can face punishments without being cited for getting behind the wheel of an uninsured car.
Penalties for driving without insurance can range in California to a minor slap on a wrist to a non-monetary penalty as serious as a jail sentence. The first time offender who receives a DMV notice will have their license plates suspended and must pay a reinstatement fee.
If caught driving without license plates, the driver will be cited and may have their vehicle impounded. This costs additional money for the citation, the impound fees, insurance, and also reinstatement. If you are caught by a law enforcement officer, you may face:
- A criminal misdemeanor on your record
- A fine if convicted of driving without insurance
- License suspension or suspension of your driver license
- Up to 6 months in jail for habitual offenders
- An SR-22 requirement for a period of 3 years
How to Find Auto Insurance in Baldwin Park
If you would like to find the best auto insurance at the best rate, you need to dedicate your time to comparison shopping.
Every insurer has their own unique set of rates that must be approved by the California Department of Insurance. While the rates must be approved, they have been set in an effort to attract a specific type of demographic in Baldwin Park.
Some insurers are targeting drivers with several years of experience that have a clean driving record, and other companies are targeting younger drivers or those who have a few spots on their record. By taking the time to comparison shop, you can truly find a company that has fair rates and that wants to do business with you.
Make sure that you check the financial rating of any insurance company that you are thinking about doing business with. The financial rating is a third-part ranking that is calculated based on the financial records and credit of the insurer. If the company is deemed unstable, they will have a poor ranking through agencies like A.M. Best or Standard and Poors.
Once you check the insurer's ranking, check their licensing status through the Department of Insurance to verify the company has a license and no complaints.
Buying insurance may feel like an overwhelming task, but it is much easier to buy coverage when you use an advanced insurance quote comparison tool. By getting access to the rates through all of the top-rated Baldwin Park insurers, you can narrow down the possibilities and select the best limits in the process. Use technology to your advantage, and price insurance right.
Use our FREE search tool below to start your comparison!