Merced Car Insurance
The California city of Merced in the heart of the San Joaquin Valley and adjacent to the Merced River is home to more than 81,000 people.
In 2005, the city of Merced became the 10th University of California campus which gave this valley town an academic flavor and a youthful population boost. Travelers from the San Francisco bay area use Merced as a rest stop while en route to Yosemite National Park which is 80 miles east of Merced.
Merced car insurance prices and regulations must conform to laws enacted by the State of California. Although many expect the cost of car insurance to be high in California, most
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Although many expect the cost of car insurance to be high in California, most insurance consumers in Merced are pleased to find reasonable auto insurance prices. Merced drivers are typically satisfied with the consumer protections guaranteed to state residents as well as a wide range of insurance options.
California voters enacted a law to reign in rapidly increasing car insurance premiums in 1988.
The new law required insurance companies to reduce their existing premiums by one-fifth, and all rate increases thereafter had to be approved by the insurance commissioner. Another consumer benefit of the law was that all drivers who had earned good driver ratings had to be offered a discount of 20 percent.
Good Driver Criteria
- Have three consecutive years of licensed driving
- Completion of a state authorized safe driving class for each traffic violation during the preceding three years
- Driver has not been cited as the at-fault driver in an injury or death caused by the same car accident
The 1988 law also made it illegal to increase auto insurance premiums because of poor credit history. Other factors may affect insurance cost more because of this law.
Your age, driving history, and city of residence may impact the insurance price more than in other states. Merced does not have the high insurance premiums common in some California cities.
Drivers in Merced must carry at the least minimum bodily injury liability coverage of $15,000 per individual and a total of $30,000 of bodily injury protection per accident for injuries sustained by others in addition to $5,000 of property damage liability protection for physical damage done to other vehicles or property such as buildings and fences.
This minimum liability protection does not pay for damages to the at-fault driver's vehicle, or to pay for injuries to the passengers who are family members of the driver who carries only this coverage.
In Merced, drivers will be required to provide proof of insurance at the time of registration and whenever stopped by a police officer while operating a motor vehicle.
It is also required to carry uninsured and underinsured motorist coverage which will cover bodily injury and some property damage caused by other drivers without insurance, or with inadequate insurance. Uninsured motorist also covers injuries suffered by passengers, drivers, and pedestrians hit by uninsured motorists.
Merced drivers who are at least 19 years of age and have good driving records can get lower cost car insurance from "California’s Low-Cost Auto Insurance" program for low-income drivers.
In addition to the legally required minimum liability, uninsured and underinsured motorist, the program offers certain additional protections which are identified by the insurance agency underwriting the policy.
Driver Types
Insurance prices are determined amount of actual driving experience, marital status, and gender. As driving experience increases, there are significant reductions in car insurance prices.
Because insurance rates are not regulated by California law, drivers who research insurance prices as they get older, or experience changes in marital status will find meaningful savings by researching different car insurance companies before renewal time.
After gender, marital status and age are taken into account, premiums will be higher if annual miles driven above average, or there are any traffic citations on the drivers record.
Each traffic citation and at-fault will affect an insurance premium at renewal and for the following three years.
Car insurance information for Merced is available on the state-sponsored website.
Although the information is not intended as official insurance price quotes, the site a real time saver when it comes to finding the best prices for driver categories.
Car insurance rates in California are not set by law but are kept lower because of competition and transparency. Rates vary dramatically among insurance providers. Without research, a licensed driver could pay thousands of dollars more than necessary for the same coverage with a different company.
Common Insurance Scenarios for Merced California
- Minimum Liability
Jeremy, 23, is a single college student at UC Merced and a veteran. He drives a 2002 Ford Escort sedan and carries only the legally required minimum car insurance. Jeremy pays USAA $73 per month for minimum liability.
Merced is less than 10 miles from Castle AFB and Jeremy is one of many local residents with a military connection. Allstate would charge Jeremy $99 per month and Farmers Insurance monthly price is $160 for the same coverage. The deductible payment for this policy is $1,000.
- Extended Coverage
Jeremy graduates from college, celebrates his 25th birthday, and marries Lisa. Lisa is also 25 and drives a 2011 Toyota Camry.
Jeremy replaces his Ford Escort with a 2014 Mazda CX 9. Minimum liability coverage is no longer appropriate. Jeremy and Lisa cover both cars with extended coverage which has bodily injury of $100,000 per person, $300,000 protection per accident and $50,000 of property damage.
The uninsured motorist has the same dollar amount of protection as the bodily injury and property damage. A $500 deductible payment, $75 towing allowance and $600 for rental car coverage is also part of this policy. USAA provides Lisa, Jeremy, and the two cars the same extended protection for $140 per month.
If Lisa and Jeremy did not have access to USAA, the next lowest premium would be with Allstate which charges $174 per month for the same coverage. State Farm is asking $243 and Liberty Mutual wants $294 per month for the very same protection.
Lisa is involved in an at-fault accident and rear-ends another vehicle. There are no injuries. When the policy comes up for renewal, the premium is increased to $174 per month by USAA.
- Premium Coverage
Phyllis, 43, is married to Joaquin who is 48. Phyllis and Joaquin have two children, a girl of 12 and a boy who is 15 years old. Phyllis drives a 2012 Honda Pilot. Just after Phyllis bought the Honda, she inadvertently made an illegal lane change and received a citation.
Joaquin drives a 2005 Dodge Ram 3500 Pickup truck that he also uses to pull the family travel trailer. Because they are very busy and want to be completely protected, Phyllis and Joaquin chose the Premium level policy.
The Premium level provides $250,000 per person and $500,000 per accident for bodily injury.
The property damage payment maximum is $100,000. Uninsured and underinsured motorist bodily injury and property damage payments are the same. This plan also includes $75 for a towing allowance and up to $900 for a rental car. The policy has a $250 deductible.
They pay $290 per month to AAA for this coverage. The same coverage is available from Allstate for $213 per month. Phyllis and Joaquin have not researched car insurance prices for many years.
- Coverage for Young Drivers
When Phyllis and Joaquin’s son celebrates his 16th birthday, he passes his driver’s test and gets the car that was promised if he earned good grades which he did. A 1998 Volvo station wagon is selected as the young man’s first car.
Adding a newly licensed driver increases their monthly insurance premium to $391 per month with AAA. The safety record of the Volvo and the teen’s good grades help to keep the insurance at this low price.
This time, Phyllis and Joaquin did some research and were pleased to find that AAA is the best for their current car insurance needs. Geico gave them a quote of $546 per month and Liberty Mutual came in at $802 per month. Farmers insurance is even higher at $982 per month.
- California's Low-Cost Auto Insurance Program
Joan is a 62-year-old single woman who is low income. She drives a 2004 Chevy Cavalier.
Joan knows that she can barely afford even minimum liability, but she needs transportation. The Mercury Insurance Group will charge $74 per month with no accidents on her driving record.
Her agent recommends she look into California's Low-Cost Auto Insurance Program. Joan is able to get slightly better coverage than the legal minimum for $226 per year, or about $19 per month. She has to pay 15 percent down and the balance in 6 installments to be paid every 2 months.
Because Merced is a California city, insurance consumers enjoy a competitive marketplace. Careful insurance shopping allows drivers to enjoy good coverage at a fair price.