Mountain View Car Insurance
As a consumer in Mountain View, it is extremely important to familiarize yourself with any product or service that you buy before you make the investment.
Because you are buying both a financial product and a service when you buy Mountain View car insurance, you should take extra time to familiarize yourself with the ins and outs of car insurance.
You should know about the compulsory insurance laws within the state, what coverage options you can choose from, and how to select the best insurer that services Mountain View.
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It sounds a bit odd to say that insurance is a product that you pay for and hope that you will never really need, but the truth of the matter is that insurance is a purely a financial lifesaver that only takes effect if and when you experience an unpleasant event.
While the idea of setting aside time to research insurance terms and conditions may not sound like an ideal way to spend your time, it is a must.
By doing your homework, you can be sure that you are complying with the law when you choose your insurance and you can select coverage that you need to keep your finances safe and sound before you are in a situation where you must file an accident claim.
Here is your beginner's guide to Mountain View car insurance so that you can learn the fundamentals.
Is insurance required in California?
One of the most common questions asked surrounding insurance is whether or not you can legally drive without it. California officials have not set mandatory auto insurance laws or requirements, but there are financial responsibility laws.
These laws state that you need to be financially sound and responsible for all vehicles registered in the state at all times with no gaps. Unlike the states that have compulsory insurance statutes, there is more than one way that you can comply, and buying insurance is one of the options.
Ways to Prove Financial Responsibility
You never know when you will need to show your compliance with the financial responsibility laws in sunny California.
When you are pulled over by law enforcement, you are in an accident or you are renewing your vehicle, you are obligated to show proof that you are obeying the law. The type of proof that you present will depend on the way that you choose to comply.
Here are the types of financial responsibility that you can choose from:
- Cash deposit placed with the Department for $35,000
- Self-insurance certificate with collateral
- $35,000 surety bond
- Motor vehicle liability insurance
You can choose to self-insure or have posted a cash deposit or surety bond, but you must have an authorization letter showing that you have chosen an alternative form of financial responsibility.
The most common type is buying liability insurance for Mountain View drivers.
What happens when drivers do not have protection?
As many as one in seven drivers throughout the large state of California are driving around the state without insurance or another form of protection.
What these drivers may not know is that failing to comply with the law is not just a risk, it is a violation of the penal code. People who fail to comply with the law can face several different penalties and time-consuming hassles.
Here are the costly penalties that you can be assessed according to the vehicle code:
- Fine of up to $200 for first offense
- Fine of up to $500 for subsequent convictions
- Impoundment of the vehicle
- Towing, storage, and impound fees
- Suspension of registration
- Suspension or revocation of driver license
- Reinstatement fees
- Requirement to file an SR-22 for 3 years
- 6 months or less in a local jail
As you can see, it is much more expensive to choose to drive without protection.
Not only must you pay for the fines and the court costs, you must also pay for damages and medical bills without help from an insurer. It is best for you to buy even a minimum level of insurance acceptable in the state.
How much coverage must you carry in Mountain View?
If you choose not to self-insurance, post a bond, or pay for a surety bond, you must carry liability cover that is provided by an insurer that is authorized by the Department of Insurance to do business in California.
Many people are not aware of the fact that California has an electronic verification program in place.
This means that all insurers must notify the DMV if a registered owner fails to maintain coverage on the car. If the policy lapses, the Department must receive a verification of a new policy within a few days or you will receive a notice that your registration will be suspended.
This is why it is crucial to always have adequate cover.
California law states that you must have minimum insurance limits continuously as long as the vehicle is registered. The law requires you have:
- Bodily Injury - No less than $15,000 per passenger and a total of $30,000 per collision
- Property Damage - No less than $5000 per incident for property you do not own
Additional Coverage Options in Mountain View
You are only required to have liability, but companies that are licensed in California are obligated to offer you Uninsured Motorist and Medical Payments so that you are protected from unexpected medical expenses that can be incurred when you get into an accident.
Here is a description of how optional coverage types work:
- Medical Payments
Medical payments reimburses you for medical bills that result when you get into an accident and you seek treatment. Limits as small as $1000 up to $100,000 can be purchased, and this limit applies on a per person basis. Fault is not considered when issuing a payment for this coverage.
- Uninsured Motorist
With as many as 10,360 drivers in Mountain View driving without insurance, having cover to protect you from these drivers is important.
Uninsured Motorist will pay for your medical expenses just like Bodily Injury would if they had insurance. The other party must be found at-fault for UM to pay.
The minimum amount of insurance you can buy matches Bodily Injury requirements, but you can raise the limits up to match your own Bodily Injury limits for an added premium.
- Comprehensive and Collision
Being the registered owner of your car does not mean that you are the legal owner of that car.
The legal owner is the entity that actually holds the title and the registered owner is the person responsible for titling the vehicle and insuring it. If the vehicle is owned by a lessee or by a finance company, you are required to buy physical damage coverage so that their financial interests in the car are protected.
Comprehensive and collision are both separate forms of physical damage coverage.
Comprehensive will pay if the vehicle is damaged by fire, theft, and other events that do not include a collision. Collision will pay, up to the value of the car locally in Mountain View, for damages if there is a collision with any object.
Each coverage will have their own deductible that you must satisfy before damages will be paid. When vehicle owners file a collision claim and they are at fault, your rates may be surcharged for 3 years following the claim.
This is an important detail to keep in mind as you price the cost of physical damage coverage.
How to Select the Best Insurer in Mountain View
Saying all car insurance companies are good insurance companies is not the truth.
There are very reputable companies that have been in business for years and are dedicated to offering quality products and then there are less reputable and less experienced insurers focused on short-term profitability.
You need to find the insurer that has competitive premiums in your area and also in your niche before you can really make a purchase.
Be sure to check into a company's financial responsibility before anything else. Financial stability means that the company is creditworthy and has the money it needs to cover all projected claims, even if they are filed in a catastrophic loss.
You can look into this by checking the company's financial rating with agencies like A.M. Best.
Next, review the complaint index of the company by visiting the official website for the Department of Insurance in your state. This index will show you if the company has a record of failing to meet the conduct standards.
Only after you do your homework and find top insurers in Mountain View can you start price shopping. To price shop quickly and easily, use an online rate comparison tool that will give you instant quotes. These tools can be accessed via the web and will give you consumer buying power.
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