Union City Car Insurance
As a resident of Union City, California, you are required by law to carry insurance or a DMV issued self-insurance certificate if you own a car.
Being that a majority of people own a vehicle in the state, learning about insurance laws and insurance as a product is imperative. Unfortunately, with all of the terms that are used in the industry and the conditions that carriers and policyholders must meet, it can be intimidating to sit down and try to learn about Union City car insurance.
As a consumer, buying a product that you know nothing about can lead to poor decisions.
Not only may you select low coverage limits that do not truly protect you, you may also select the wrong insurer who may not stay in business.
The key to buying the best plan is to familiarize yourself with industry terms and product offerings.
Luckily, this guide will help you do just that by compiling all of the information that you need into a single source. Read on, and learn the basics of Union City car insurance and other unbiased information that you can use to buy a plan that fits within your budget.
Then, enter your zip code to find car insurance in Union City to fit your budget today!
What is the California law surrounding car insurance?
If you live in Union City, you must follow the California Vehicle Code. The state vehicle code says a lot of things, but one important topic discussed in the legislation says that drivers must be financially responsible for damages and injuries that they cause.
The state officials will not just take your word for it that you will be able to cover the costs if an accident ever happens. Instead, the Financial Responsibility Law was written to lay out how residents must prove they are financially responsible.
The Financial Responsibility Law says that there must be evidence of financial responsibility on all vehicles that are driven on public roads.
The evidence must be shown when you are asked for it by an officer when you are registering your vehicle, and when you have an accident. There are a few different ways that you can show that you are complying with the law.
You can either deposit $35,000 with the Union City DMV, secure a surety bond with collateral, or buy your own liability insurance. For those who have the cash or the property, self-insuring could be an option.
For those who want to transfer the risk or pay a small amount each money, buying insurance is best.
Why Buying Union City Car Insurance is Best
Even in a state where you have alternatives to buying auto insurance, getting the liability coverage is the best choice. There are numerous reasons why buying insurance is better than self-insuring, even if you do have your own wealth.
The biggest reason to buy insurance is because you are transferring a great deal of risk to a carrier that has their own wealth dedicated to paying claims.
For a small amount of money, you have peace of mind in knowing you have a set amount of coverage.
Another reason why to buy insurance is because you will carry third-party liability protection, but you also have the option to carry coverage to pay for your medical expenses and car repairs.
This means that you will not have to come out of pocket to avoid a lawsuit or to get your own vehicle back into operable condition. If you are taken to court for the damages that you cause, you will know that your insurer will pay for legal defense and fight for you as their policyholder.
How much auto insurance is required?
You cannot choose any amount of coverage when you are purchasing your policy.
You must have a minimum amount of coverage if your choice is to comply with the law by showing evidence of insurance. All residents who live in Union City, San Bernardino County or the state as a whole must carry third-party liability coverage to pay for medical bills and repair bills that are not their own.
Here is a description of the liability requirements so that you know what you are paying for:
- Bodily Injury (BI)
BI is liability coverage that pays when you are primarily at fault for injuries or the death of another person in a traffic collision.
It will only pay for the medical bills of people who were not in your vehicle or living in your home. In addition to medical bills and lost wages, BI will pay for pain and suffering if you are sued and they are awarded a judgment. In California, you must carry $15,000 per person, up to $30,000 per accident in BI.
- Property Damage (PD)
PD is liability coverage also and pays a single limit for the damage that you are at fault for damages to real property and not to persons.
Some of the examples of real property include buildings, homes, cars, street signs and more. The coverage will pay when insureds cause the damage and when someone who borrows your car with permission does. In California, you can carry no less than $5,000 per accident in PD.
- Uninsured Motorist Protection (UM)
Uninsured Motorists are driving all around the nation, but there are as many as 4.1 million in California alone. If you narrow this statistic down even further, there are about 10,200 uninsured drivers in Union City who are passing by you and putting you in the line of fire every day.
Uninsured Motorist is not necessarily required, but your insurer must offer it to you.
If you fail to sign a form saying that you do not want a minimum amount of UM, the coverage will be added to your policy automatically. UM is an important coverage because it will pay for your medical bills is someone irresponsible enough to drive without insurance collides with you.
You can carry minimum limits that mirror BI requirements, or higher limits if they do not exceed the BI limits that you carry.
- Medical Payments (MP)
Medical Payments is another important coverage that many need to consider. All California insurers must offer this coverage, and as a policyholder, you must reject it in writing within 30 days of applying for insurance.
If this rejection is not signed, $1000 per person in coverage will be added to your policy.
Medical Payments offers you reimbursement of your medical costs is they are resulting from an accident. Everyone in the car will receive the benefit and so will insureds who are pedestrians. One of the great things about MP is that it pays even if the driver in your car is the at-fault party.
It is also great because it can pay if you have a copay, deductible or no insurance for a service.
How to Find Union City Car Insurance on a Budget
Now that you are familiar with some of the most popular terms you will find on a policy and the car insurance laws in California, the next step is finding an insurance policy that you can afford to buy and to keep as well.
There are several different ways to find car insurance on a budget. You can select bare minimum coverage limits, or you can be a bit more resourceful and buy full-featured policies at close to the same price. Here are some money-saving tips all consumers buying insurance should know:
- Compare Costs Before You Buy a Car
If you do not yet own a car, the first thing that you should do is price the cost of coverage for the car you want. Insurance costs vary for vehicles because of their body style and their safety record. If you find out how much coverage is for one model vs. another model, this can help steer you in the right direction.
- Seek Out Usage and Mileage Discounts
Insurers consider how often you drive and why you drive when calculating rates. If you are a high-mileage driver, you pay more than a low-mileage driver.
If you drive for commute or business, you pay more than someone who only drives for pleasure. Classify your cars for pleasure if you carpool or work from home, and never over-estimate how many miles you drive every year.
- Choose the Right Deductibles or Eliminate Physical Damage
You should be strategic when you decide to carry damage coverage for your car. If the car's value is low, then you may not even need full coverage.
If you need full cover but the premiums are too high, raise the deductibles to lower your premiums.
The last step to save is to shop around, and the best way to shop around is to use an online rating tool. You can enter your information into the website form, select the coverage that you want, and then find instant rate quotes for Union City car insurance from reputable carriers.
Use our FREE quote tool below to receive car insurance rates from the top companies in your area!