Lakewood Car Insurance

Lakewood, California is a medium-sized city in Los Angeles County that's known as the City of Tomorrow. With a rich history, a family-friendly community setting, tree-lined city streets and a diverse population of residents, the city is a beautiful and inviting place to live. Start comparing car insurance rates now by using our FREE tool above!

Although there are around 300 miles of sidewalk in Lakewood, the city itself has earned only a moderate Walk Score. While Old Lakewood City and Lakewood Gardens offer a setup where establishments can be accessed on foot, you'll need a car to get around in most neighborhoods.

Owning a car as a Californian comes with responsibility. Not only do you need to maintain the car, you also need to maintain insurance. Here's what you need to know before you start shopping around:

All Residents in Lakewood Must Comply with California State Law

Lakewood was incorporated in 1954. At that time, it was incorporated as a general law city. This means that the city council members adopted the state legislature and signed a city charter that said that residents in Lakewood would have to comply with state codes that apply to all Californians. One of these codes concerns auto insurance.

Anyone who owns a vehicle that's registered in the state of California must prove they are financially responsible. While some refer to financial responsibility as insurance, it's actually more than just that. Evidence of financial responsibility can include insurance, bonds, cash deposits and even certificates.

What is the purpose of the Compulsory Financial Responsibility Law?

Financial responsibility laws were passed in California to ensure that all consumers have protection against drivers who can cause injuries while driving a car. These consumers include drivers, bicyclists, motorcyclists, or pedestrians. If you own a car registered in California, you have no option but to establish proof of Financial Responsibility.

Since California operates under a tort law system, it's a vehicle owner's responsibility to pay for all of the damages that they cause while they drive a car.

By showing evidence of financial responsibility, the driver is showing that they have the financial ability to pay for medical bills, vehicle repair bills and the cost of property replacement.

How can you show evidence of financial responsibility?

Unlike some states, California doesn't have a mandatory insurance law. This means that you have a choice when it comes to how you'll show the state that you have the ability to pay for third-party damages. Most people decide to buy insurance even though there's a choice. Here are the methods that you can choose from when you're demonstrating financial responsibility:

• Buy a surety bond in the amount of $35,000 secured by property (must be approved by the DMV)
• Apply for a certificate of deposit through the DMV by depositing $35,000 in the form of cash or a cashier's check
• Get a certificate of self-insurance through the DMV when you have 25 or more vehicles and you're approved by DMV officials
• Purchase auto liability insurance through an insurer that's licensed to sell personal car insurance in the state

What limits of insurance are required by law?

If you don't have $35,000 of disposable income or equity that you want to put at risk, you need to buy insurance. You can't just buy any type of insurance and call it a day. You do need to satisfy the minimum coverage requirements written into the law or you'll be considered uninsured. Here are the state minimum requirements:

• Bodily Injury Liability: $15,000 per person, $30,000 per accident
• Property Damage Liability: $5,000 per accident
• Limits under policy are written 15/30/5

What does Bodily Injury pay for and are the minimum limits enough?

This means that Bodily Injury will only pay for the medical bills, loss of income and funeral expenses that are incurred by another driver and their vehicle occupants. It doesn't pay your own bills in any way.

State officials in California only require that drivers carry coverage that pays for other people's damages.

While a $30,000 per accident limits sounds high, you have to consider how expensive medical bills are when you're selecting limits. Medical treatment and transport can cost a great deal of money. In fact, Lakewood's Health Care Index is a high 119. This means that it costs 19 percent more in Lakewood for healthcare services than it costs in the average city nationwide. This is a major reason why carrying higher limits is crucial.

What does Property Damage pay for and is the minimum limit enough?

Property Damage is a third-party liability coverage that is designed to pay for repair bills and the cost to replace a car that someone else owns when you damage it in a collision. It doesn't pay for your own property damage repair bills. Limits pay per accident and not per object damaged.

The $5000 minimum limit that's required by law is extremely low. That's not enough to even pay for a paint job and bumper repair after a minor accident with a luxury vehicle. Since the average cost of a new car is $33,560, it makes sense to raise your PD limits to something that could at least replace a totaled car. Most experts recommend a $100,000 limit.

What is Uninsured Motorist Protection and is it required?

Uninsured Motorist Protection is a provision that can be added to a basic auto insurance policy for additional premiums. The benefit will pay you on a per person and a per accident basis when you accrue medical bills or you miss out on income because you're injured in an accident with an uninsured motorist.

While Uninsured Motorist is a lot like the Bodily Injury coverage you carry, it's not required by law because it's a first-party coverage option.

If you're worried that only some carriers offer it, don't. This is one provision that every licensed carrier in California must offer, even if you're a risky driver. Those who don't want the coverage must reject it in writing.

Are there a lot of uninsured drivers in Lakewood?

Uninsured motorists put every driver, passenger, pedestrian, and bicyclist on the road at risk. The thought of getting into an accident with someone who doesn't have insurance can be scary but you might be curious to know just how many drivers don't have insurance in your area. Since just less than 15% of drivers in the state are uninsured, you're definitely vulnerable.

Since you can't play the guessing game, looking into the statistics of vehicles in your area can be helpful. In Los Angeles County, there are approximately 7.8 million vehicles. This translates into about 1.17 uninsured vehicles in your city and surrounding areas. That's why the uninsured motorist provision is so important in Lakewood.

Is there coverage to pay for your medical bills?

Uninsured Motorist gives you peace of mind if you're in an accident with an irresponsible driver who don't have financial responsibility. What if you're in an accident with an insured driver and you're at fault? You still might benefit from having the protection that helps pay for your medical expenses. That's what Medical Payments is for.

Medical Payments is another add-on provision that must be offered by California carriers.

While it's not required, it's a no-fault coverage that you should consider carrying when you don't have medical insurance or when you have a high-deductible plan. Price the cost of a small limit and get coverage for common expenses you incur in a medical emergency.

How are rates calculated when you buy California auto insurance?

Every state has its own rules when it comes to rate filings and rate determination factors. That's why you should get familiar with the factors that will have a direct affect on your rates when you're getting quotes. Each factor used is related to risk. Here are the most common factors that can bump your rates up or drive them down:

• Vehicle type, size and safety record
• Driver experience, age, gender, marital status
• Accident history
• Motor Vehicle Record
• Prior insurance history
• Annual mileage
• Car-to-driver ratio and driver assignments
• Driving habits (commute, business use, pleasure)
• Garaging zip code (Bloomfield Ave has lower rates than Carson St because of crime rates)

If you are in the market for Lakewood car insurance, the best thing to do is shop around. By shopping around, you can target the companies with rates that's competitive for consumers in your demographic. The most effective way to get quotes is to use a brokerage-style online quoting tool. Enter your zip code in our FREE tool below to compare car insurance rates now!