Tracy Car Insurance
With so many different car insurance companies and coverage options to choose from, it is no wonder residents in Tracy need a consumer guide to help them make the right choices.
Drivers in California are required by law to prove that they are financially responsible before they register a vehicle and continuously when the vehicle is registered to be driven on public roads.
While auto insurance is just one of the multiple ways that drivers can show financial responsibility, it is the most popular way and makes the most sense to people who want to protect their assets from losses.
This is because auto insurance is a product that will provide you with thousands of dollars of coverage for pennies on the dollar.
If you would like to learn about insurance requirements in Tracy and how to pick the right Tracy auto insurance company, read this guide and get the straightforward answers to your gauging questions. Then, enter your zip code above for car insurance quotes from multiple companies!
What laws must you comply with when you have a registered vehicle?
Owning a vehicle comes with responsibilities. Just like you must abide by the driving laws when you have a driving privilege, you must abide by the California Vehicle Code when you own any car that has been manufactured to be driven on highways and freeways.
The vehicle code states that it is against the law to drive a vehicle that does not have proof of financial responsibility. You can comply in one of the following ways:
- Post a $35,000 deposit with the Tracy DMV
- Apply for a self-insurance certificate if you own your own business
- Purchase a surety bond from a licensed insurer in California
- Buy liability auto insurance that meets minimum requirements
Why Auto Insurance is the Best Option
If you post a deposit, self-insure or buy a surety bond, you are putting up your own money and collateral to pay for damages that you cause to property or individuals.
This means that you have no buffer of protection if you have a catastrophic loss. When you buy auto insurance you are buying protection by entering into a contract with the insurance company.
The contract states that when you pay premiums, the insurer will protect you from financial loss by agreeing to pay for the benefits and losses that are written on the policy. All policies provide liability coverage and some will also offer medical coverage and coverage to repair your property if you pay additional premiums.
If you are looking for peace of mind along with protection, the best choice is to buy auto insurance coverage.
How much auto insurance is required in Tracy?
The auto insurance laws vary from state to state, and residents in Tracy must comply with the California laws.
Some states have very broad requirements, and states like California have basic requirements. Buying coverage limits that are required can still leave you vulnerable behind the wheel.
It is important to know the state requirements, but you also need consider raising those limits so that you have adequate protection. Here are the coverage options you must carry and the limits you cannot go below:
- Bodily Injury Liability (BI)
Bodily Injury is a form of liability coverage that pays to cover damages that you or another covered driver is responsible for.
BI will not pay for your own injuries or the injuries that someone in your vehicle sustains, and is purely for third-parties who are pedestrians or occupants of a vehicle. Tracy drivers must have $15,000 per individual and $30,000 per accident (written 15/30).
- Property Damage Liability (PD)
Property Damage is the remaining part of liability coverage that pays for property damage to any objects that you do not own.
If you or someone else who is covered to drive your vehicle hits trees, fences, buildings, homes, vehicles, or other public property, the repairs or replacement of these items will be paid for under PD cover. Tracy drivers need to carry no less than $5,000 per accident (written 5).
Medical Payments and Uninsured Motorist
Liability coverage is required, but insurers are also required to offer you both Medical Payments and Uninsured Motorist coverage options.
You as a consumer have the right to reject the coverage that is extended to you, but you must sign a rejection form. Before you elect not to purchase these coverages, you should know what types of monetary loss they protect you against:
- Medical Payments
Medical payments will pay for your medical bills or will reimburse you for your medical bills if you seek treatment after an accident.
Not only does Medical Payments pay for your treatments, it also pays for your passenger's bills or for someone who lives in the household's expenses if they are hit as a pedestrian. Fault is never considered when disbursing these benefits.
- Uninsured Motorist
The Insurance Research Council has found that nearly 15 percent of drivers in the large state of California are not insured. This means that approximately 12,000 drivers who live in Tracy are putting you at risk every time that you drive.
With so many uninsured drivers in the area, Uninsured Motorist is an important coverage to consider.
This coverage will pay for your medical bills, lost wages and other expenses when you are in a collision with a driver who has no coverage. It also pays if someone is insured but has low limits that will not cover all of your bills.
You must be offered $15,000 each person, $30,000 each accident, but can reject it. You can also select higher limits that do not exceed your limits of liability.
Supplemental Coverages Available to You
In addition to the required coverage, you also should consider buying physical damage coverage to protect your vehicle if it has retained its value.
Physical damage consists of comprehensive and collision coverage. You are also required by lenders or lessors to purchase both comprehensive and collision cover to protect their interests in the car if you are under contract.
You may also consider adding rental car reimbursement, towing, labor and accidental death to your policy for added protection.
How to Choose the Right Auto Insurance Company in Tracy
Now that you know what you are required to carry, the next step is to learn about the carriers that you can purchase coverage from.
Before you even start shopping for insurance you should size up the coverage that you currently have or decide on the coverage that you need. Once you have done this, you can begin to price shop and look for the value that you deserve.
Price is important, but looking for a company that offers you value that another does not is key.
Here are some ways to cross the Tracy insurers that do not make the cut off of your list:
- Financial Strength and Solidity
Companies that sell financial products like auto insurance are graded by third-party agencies. These companies have public financial records and are graded in an effort to protect consumers.
When you are buying financial protection, you want to be sure that the company has the finances to pay for your claims. Agencies like A.M. Best, Moody's and Standard and Poors will rank insurers to make assessing their financial solidity easy.
Be sure to check the grading system and review the most recent grades so that you only choose a secure carrier.
- JD Power Rankings
If you want to get a look at the big picture, you may also want to refer to JD Power and Associates rankings.
The insurance ratings help you find the top insurers that have good product offerings, deliver quality service, have great policy features and that keep customers satisfied. If you are trying to compare insurers that have solid financial grades, check their ratings through this agency.
- Complaints
You must buy insurance from a company licensed to do business in California by the Department of Insurance.
The reason for this is because the department will set standards and review complaints as they are filed. If you ever have a problem with your premiums, qualifying for coverage or filing a claim, you have the right to file an official complaint. These complaints and their outcomes can be viewed by the public.
Review the complaint index of the company, see if there are some red flags, and stay away if there are negative trends.
Buying Tracy car insurance may be intimidating, but it does not have to be difficult when you know what you are buying. Now that you know about the state requirements, it is time to compare premiums. If you want to compare the rates that are available through different insurers, use an online rate comparison tool.