Reader’s Question:

How do car insurance companies calculate the rate they charge in California?

Imogene

Good Question Imogene.

The insurance premium you pay to your car insurance are either set by the state or determined by the insurance company that you have depending on your jurisdiction.

Insurance companies combine a number of different factors to determine the individuals premium. Each insurance companies have different ways of looking at things that is the reason why this will produce different variations in prices.

Here are some of the elements that insurance companies consider that affects your final insurance rates:

The kind of car you drive

Car insurance companies have different claim experiences of the makes and models of the car to produce the insurance rate of an individual. They check on the repair cost and the risk of the car being stolen and then price it accordingly. One of the factor would be the current value of your car in the market.

where you live

Insurance rates are generally higher in the metropolitan area. There is a higher likelihood that accidents, theft or vandalism may happen in cities with higher density of traffic and people.

your driving record

One of the major factors that affects your insurance rate is the number of years that you have been licensed to drive and your previous insurance records. If you have a clean driving record, your premiums will be much lower than with those that had convictions or accidents.

how your vehicle is being used

The more you use your vehicle , the higher the odds of you getting involve in an accident. People who do not do much driving will have a lower insurance premium than those who always use the vehicle or those that use extensive amount of driving. If you have inexperienced drivers in the household, your insurance premium will likely to be higher.

These are just some of the factors that affects your premiums. That is why it is best to get several quotes and compare all the prices to make sure you will get the best car insurance that will get you fully covered and saves a lot of money in the long run.

Goodluck!

MariCAR

Driving can be very risky in California highways. Theres always a chance that you may get involved in a traffic accident. Knowing what to do in this situation can help you save money whether its just a small fender bender or a major damage. Here are some of the tips you can do after an accident an how to file a claim from your insurance company for your convenience.

1. Make sure that you have carefully read the policy.

2. Ask any agent of contact your insurance company if there is part of the policy that you dont understand.

3. If you get involve in an accident, call the police immediately. Call the paramedics if there are people injured.

4. Get all the information you need that you can give to your insurance company.

5. Immediately notify your insurance company about the accident.

6. Ask you insurance agents regarding on how to file a claim if you dont know the procedure.

After you file a claim to your insurance company, they will contact you for any additional information such as the detailed accounts of what happened. Other witnesses will also be contacted as part of the investigation. You must also file documentation of your injuries, medical expenses etc.

The damage will be evaluated by the adjuster and will inspect the damage. The repair shop will contact the insurance company if additional damages were found during the repair process.

Become familiar with your insurance policy. Make sure you read carefully what your coverage is and that is not covered.

Goodluck!

MariCAR

Reader’s Question:

I live in California and I just want to know what I should do if I cant find an insurance company that will insure me?

Thyme

Good Question, Thyme.

Some of the insurance companies specialize for the high risk drivers. This what we call the non standard market. If you plan to purchase in the non standard markets, make sure you shop around first because the requirements and eligibility are different from these insurance companies.

If you still cant find an insurance company that will insure you, you can get liability coverage from the California Automobile Assigned Risk Plan. (CAARP). This plan is for those who are unable to find an insurance company from the non standard markets and for those who do not qualify as a good driver.

Heres how the plan works. Your application will be assigned to an insurance company. All insurance companies are required to accept all applicants of CAARP. The rates for the plan are all the same regardless of which insurance company that issues the policy. This plan is also available in installment. If you maintain a clean driving record for three years, you may be able to move to a standard line insurance company.

You may check with the certified insurance agent of CAARP to find out more information on how to apply for the insurance with this plan.

Goodluck!

MariCAR

Reader’s Question:

What other coverages can I purchase that is available in the state of California?

Mark

Thank you for asking Mark.

Other coverage that you can purchase aside for the state minimum liability coverage are:

Uninsured/Underinsured Motorist

This provides an insurance if the other driver that is at fault does not have the required minimum liability coverage or insufficient policy to cover injuries in the event of an accident. This also covers any damages on your car.

Other optional coverage that is being offered by most insurance companies are:

Medical Payments

This covers any medical bills and any similar expenses

Physical Damage

Collision coverage covers damages to your vehicle caused by collision to another vehicle or with any object regardless who is at fault. Comprehensive coverage covers any damage to your vehicle other than collision like fire, theft, vandalism, acts of nature, etc.

Endorsement/Riders

This covers special equipments, towing service fees, and rental reimbursement.

These coverage are optional. You can add this to your insurance premium to get you fully protected and saves money in the future.

Goodluck!

MariCAR

Reader’s Question:

What information do insurance companies get if apply for a car insurance in California?

Ray

Good question Ray.

The insurance company or an agent will ask for certain personal information if you apply for a car insurance. This would help them determine if you are eligible for the coverage and they will be able to know the price for your coverage. The information that will be collected if you apply for a car insurance are; driving record, automobile mileage driven and years of driving experience.

A Motor Vehicle Report will be ordered for all the drivers on the insurance application by the insurance company on some states. The Motor Vehicle Report is an official record of a motorist that can be obtained from the Department of Motor Vehicle. This is being use to verify any traffic offenses, license revocation and any accidents of all driver’s listed on all application.

In case of any unsatisfied judgment, major traffic or moving violations. license suspension and failure to show liability insurance, a California Insurance Proof certificate or SR22 is needed. This is being filed by the insurance company to the Department of motor vehicles. Normally the requirement period is up to three years. Any minor convictions remains on the record for 3 years, 7 years for the major convictions like hit and run, reckless driving etc.

Goodluck!

MariCAR

Choosing the right California depends on you. It isn’t the responsibility of the insurance company nor an agent to determine what type of coverage you need. You may be able to have an open discussion with an agent so you can decide what is the best option for you that fits your needs. You should need to know and decide the best coverage for you before you get involved in an accident and not after the accident.

Threes a lot of options available when choosing for the right coverage so you should shop carefully and compare the prices that these insurance companies offer.

The first thing that you should ask yourself is if you need a higher limits. You have the option to consider a policy with a higher limits from the required minimum liability coverage from the state since you are personally responsible for the damages you may cause in the event of an accident. It would be worth considering an extra coverage due to increase of hospital bills and other expenses like car repairs.

The next best thing to do is to shop around. Each insurance company is allowed to calculate its own rate based on the past laws experience and expenses. Therefore the rates will differ since company’s experience are different even if they are located in the same geographical area. You may be able to contact any independent agents, company agents that represent a certain insurance company, websites and other writers for insurance company. They will be able to help you decide which company to choose and the best rate that you can get.

You should be wise on choosing the right insurance company for you. This can greatly affect the premiums that you pay for your vehicle, It is best to compare before deciding what policy to choose.

Reader’s question:

How long does a DUI stay on your record in the state of California and is there a way that the years of penalty can be reduced?

Holly

Good question Holly.

The California Department of Motor Vehicles states that any California offense will appear on your driving record 10 years from the violation date. This is a new legislation thus extends the reporting period from seven to ten years for DUI offenses.

This new law allows the insurance companies to have access to the driving record of the motorist to properly apply the new provision of the Insurance Code. This would determine the eligibility of the the drivers discount. Motorist with a DUI violation occurring within the past 10 years are not entitled to received such discounts like Good Driver discount.

You may not be able to qualify for the good diver discount until 10 years from the date of the violation under this law. You may contact your insurance company regarding other information on your premiums.

There are no exceptions in this law. The reporting period of ten year applies to all non commercial drivers, even to those who maintain a clean driving record thereafter.You may contact the Department of motor vehicle to find out if theres any way that you can get the DUI off your record before the ten year period.

Goodluck!

MariCAR

Reader’s Question:

How long does a car accident stay on your insurance record in California?

Tom

Good question Tom.

All accidents are reported by the law enforcement officer to the Department of Motor Vehicle that will show upon your driving record unless another person is at fault in the event of accident.

The California assigns one point to at fault accidents. The points will be placed on your driving record and all the information regarding the incident. This information will stay on your record for three years.

Whenever a person applies for a policy, renews his insurance or makes any changes in their auto insurance policy, the car insurance companies check the individuals car insurance and driving records. If your accident is on the MVR, this will definitely affects your insurance rate.

Insurance companies keep records of your claims related to accidents as well as the California Department of Motor Vehicles. The insurance companies can access the comprehensive loss underwriting exchange to find out what previous claims you’ve had.

You may contact the California Department of Insurance to find out if California allows insurance companies to charge surcharges or raise premiums due to accidents.

Goodluck!

MariCAR

Reader’s Question:

What penalties for a minor driving without drivers license in California?

Jay

Good question Jay.

In California, the penalties for driving without drivers license are fines/court fees and towing and impoundments of the vehicle the unlicensed motorist is driving. The vehicle may also be taken away from you as a forfeiture if you have prior conviction for driving without insurance in California.

It is misdemeanor to drive without a valid drivers license in California. All motorist are required for the driver to carry his license while driving at all times. If you drive without car insurance or revoked license, you may be fined with $1000 for the first conviction.

If a minor drives without a valid license, the minor will be delayed for receiving his driver’s license. Before they can receive or obtain a valid license or permit, the California Department of Motor Vehicle should be able to give the minor the information of what licensing penalties would be.

Normally the county court where you were cited for the conviction will be the one who will assign the fine. You may call the court or other entity listed on the ticket to find out more information on the penalties for driving without valid license in the state of of California.

Goodluck!

MariCAR

Reader’s Question:

Can I drive without insurance in California? What is the cheapest minimum coverage should I have?

Mel

Thank you for asking Mel.

It is mandatory that all motorist has a car insurance in California. There’s a lot of drivers looking for the cheapest car insurance and insurance companies are willing to provide it. Drivers that do not have their vehicles insured will incur penalties in the state of California. You license may also be suspended or revoked if you fail to show proof of financial responsibility. A ticket may also be issued if you fail to show proof of auto insurance when asked by the person with authority. So it is very important for the motorist to get the cheapest car insurance they can get to make sure that they get the policy that meets or exceeds the state minimum required liability insurance.

The minimum California liability insurance are $15000 for the death/injury per person in an injury and $30000 for the death/injury of all the people involved in an accident plus additional $5000 for the property damage liability. A person have the option to fulfill the obligation by posting a surety bond or making a cash deposit with the California Department of Motor Vehicle.

It is easy to purchase a ca insurance plan but what is important is to choose a reputable insurance company that will provide you the coverage.

There are other factors that you need to consider when purchasing cheap car insurance. Those who drives old vehicles are generally suited to get the cheap car insurance. A cheap car insurance may not cover a person in the event of an accident or collision. Cheap car insurance will certainly not cover the towing charges and the rental fees while the damaged car is being repaired. All cheap car insurance companies offers are all different. Therefore it is best to compare several companies.

Goodluck!

MariCAR