Modesto Car Insurance
Modesto may be Spanish for modest, but the city is anything but that.
As the 18th largest city in the state of California and the largest city in Stanislaus County, Modesto is a sizable place where privately owned companies like Foster Farms, E&J Gallo Winery and Acme Construction house their headquarters.
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Ranked 48th on the "Best Bang-for-the-Buck Cities" list released by Forbes, Modesto is a great place to call home. If you're relocating to "The Modest City" for an affordable California cost of living, it's time to budget for auto insurance. Here's what you'll need to know before you start to comparison shop:
Modestans Are Required to Comply with State Insurance Laws
Auto insurance laws are regulated by the state.
Since requirements don't vary from city to city or county to county, all Californians with private-use vehicles that are registered to be driven or parked on California roadways are required by law to prove that they're financially responsible. With this being said, auto insurance isn't mandatory.
Difference Between Mandatory Insurance and Financial Responsibility Laws
Some states have mandatory auto insurance laws and others have financial responsibility laws.
Out of the two, financial responsibility laws are a bit more flexible because you don't actually need to carry an auto insurance policy to legally drive. Instead of buying coverage, you can file proof that you can afford to pay for damages with collateral or cash.
What does the California Financial Responsibility Law say?
Under California's compulsory Financial Responsibility law, all vehicle owners who drive their vehicles or lend their vehicles to a driver must be able to show that they're financially responsible at all times.
Failing to purchase insurance or maintain evidence that's required by law comes with serious penalties.
- Certificate of self-insurance approved by the DMV
- A cash deposit in the amount of $35,000 filed with the Department of Motor Vehicles
- Filing a $35,000 surety bond that's been issued by a surety company licensed to sell in California
How much insurance is required?
If you choose the usual method to comply with the state law, you're required to buy a minimum amount of liability insurance to cover third-party damages. Only third-party Bodily Injury and Property Damage coverage are required by law.
Here's a breakdown of the limits that you must carry:
- Bodily Injury (BI): $15,000 per person, $30,000 per accident
- Property Damage (PD): $5,000 per occurrence
- Limits are written as: 15/30/5
How does auto insurance liability coverage work?
If you decide to carry a basic auto insurance policy, you'll have nothing more than the minimum limits required forBodily Injury and Property Damage. Both coverage options are designed to pay for damages to others when you're at least 51% at fault for a loss.
If you're not at fault, you're not liable and your liability coverage won't pay.
BI pays for medical bills, emergency transport, and funeral costs incurred by claimants like pedestrians or vehicle occupants.
PD pays to repair and replace real property when a claimant files a claim against your policy. Some covered property includes bikes, cars, trucks, buses, benches, lamp posts, and buildings.
Understanding First-Party Coverage Options for Your Medical Bills
It's nice to have liability coverage to protect your assets but that doesn't provide you with any benefits that'll pay for your own medical bills.
If you're all about planning ahead, you should consider add-on provisions and optional coverages like Uninsured Motorist Protection and Medical Payments.
Uninsured Motorist Protection is a coverage that will reimburse you for your medical bills if a driver without insurance hits you.
It also pays if someone has insurance but their limits are low. All California insurance carriers must offer you the option to buy this coverage but you do have the right to reject it in writing.
How is Medical Payments different from Uninsured Motorist Protection?
Like Uninsured Motorist Protection, carriers in California are required to offer at least $1000 in Medical Payments coverage.
Even though it must be offered, you can reject it in writing but it's important to consider carrying it for added protection for you and your passengers.
What makes Medical Payments coverage different from Uninsured Motorist Protection is that fault doesn't matter when it comes to benefit eligibility. The coverage is a no-fault benefit that will pay no matter who caused the accident or if the other driver had insurance.
It also pays on a per person basis and not a per accident basis.
Is it a good idea to purchase Uninsured Motorist Protection?
The cost of healthcare is high all throughout the country but California ranks number 1 in average hospital cost by state. Since diagnosing medical problems and treating them can cost a small fortune, it's important to protect yourself.
One thing to really consider protecting yourself against is an uninsured driver.
According to a study released by the Insurance Research Council, about 14.7 percent of drivers in California don't have insurance. Since Modesto is a highly populated area, there's a great amount of risk in the city rather than just a modest amount of risk.
If you do the math based on the population figures, out of about 201,065 residents, around 30,125 drivers are going up and down Paradise Road and Standford Avenue with no liability insurance.
Is Medical Payments coverage a good idea if you have medical insurance?
While the new Affordable Care Act laws have made health insurance a requirement, having a health plan doesn't mean that you don't have gaps in coverage. Carrying Medical Payments is advised if you have a high deductible or you have a large co-pay since your coverage will help prevent you from paying out-of-pocket.
Do you need physical damage coverage for theft and vandalism?
Comprehensive is a form of physical damage coverage that covers your vehicle if it's damaged because a non-collision loss. Some of the most common claims that are filed under comprehensive are claims for motor vehicle theft and vandalism.
That's why it's important to look at the rate of theft reported in Modesto.
Based on the crime rates for Modesto, California, the risk of having your vehicle stolen are very high. In fact, your chances of being a victim of a motor vehicle theft are 1 in 22. That's much higher than the probability in California which is 1 in 41.
Since the property crime rate is high you should price the cost of comprehensive.
How much does physical damage coverage cost?
As you're shopping for auto insurance it can help to know what you should expect.
That's why you should take a look at the average expenditures for a full coverage policy. California ranks 22nd in terms of auto insurance expenditures. The average cost for comprehensive is only $97.67 per year, but the average cost for collision is $361.24.
What determines the cost of your coverage?
Looking at average expenditures will give you a nice place to start but you need to remember that your premiums are very personalized. California insurance carriers use a long list of different rating factors to calculate how much you'll pay for basic coverage or add-on coverage.
Here's what's standard:
- Years of driving experience (age can't be used in California)
- Zip code (zips around Maze Road cost less than zips around City Center)
- Annual mileage per vehicle
- Driving habits (pleasure costs less than commute)
- Gender
- Accident record and motor vehicle report
- Vehicle safety record and body type
Different Discounts Available for California Drivers
Every state has its own list of discounts available to drivers. One thing that's great about discounts is that you can stack them to save a bunch of money. Here are some of the options that you should see if you qualify for before you shop around:
- Good Driver Discount
- Driver Safety Training
- Mature Driver
- Good Student Discount
- Daytime Driving (seniors)
- Multi-car Discount
- Multi-policy Discount
- Alarm discount (passive and active)
Now it's time for you to comparison shop to find the most affordable rates for your policy.
You can easily use an online rate comparison tool to pull up personalized rates in a matter of minutes. Access an online insurance quote tool, enter your zip code and start accessing quotes.
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