How Long Does an Accident Stay on Your Car Insurance Record In California?
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
Penalties for Driving Without a California Drivers License
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
Cheap California Car Insurance – Are Lawsuits To Blame For High Costs?
One of the big obstacles between you and cheap California car insurance are the number of lawsuits being filed against California car insurance companies every year that force these companies to raise their prices. While it is at times necessary to file a lawsuit in order to get the money that you need for your car insurance claim, the number of claims filed is high enough to elicit some concern from car accident lawyers, even though they are the ones who profit the most from it.
According to attorney Nick Johnson, who has offices all over the country, collisions that involve someone getting injured or killed have dropped in the past year, which should mean that the number of lawsuits should drop as well, because more California car insurance companies are sued when someone is injured. However, while the injuries have decreased, they haven’t made a dent in the number of lawsuits being filed against cheap California car insurance companies.
As a matter of fact, he says, the number of lawsuits is actually going up, despite all reason.
One of the reasons for this, according to Johnson, is that over ten percent of drivers currently on the road do not even have a car insurance policy. While the exact numbers cannot be gotten, due to the nature of driving without insurance, the numbers are high enough in theory to convince anyone who was considering not equipping them self with uninsured motorist California car insurance coverage.
Along with that, the amount of car insurance required to meet minimum liability standards has stayed the same for many years, even though the cost of health care and car repair has risen quite significantly. Having underinsured motorist coverage couldn’t hurt, either, apparently.
What Does Insurable Interest Mean?
Reader question:
What does the term ‘insurable interest’ mean?
Maggie
Thank you for your question, Maggie.
I’m surprised that I missed that one on my list of terms for California car insurance. If you’re confused about any other wording and want to look at the list, it’s a few posts down and explains all of the common terms used in the car insurance business. Now, I will get to the subject at hand.
An insurable interest is, essentially, when you have some sort of property which, if it were to be damaged or somehow lost, would also cause you some degree of financial harm. For example, if your house was severely damaged in a flood, then that house would be an insurable interest (before or after the flood) regardless of what you choose to do with the house itself. Maybe you decide to remain in its damaged surroundings and fix it up, which would be considered financial harm, or you sell it for less than its value was before the flood, which would also be categorized as financial harm. Either way, you would lose out, which is why we have California car insurance (and homeowner’s insurance).
What makes an interest insurable, according to California car insurance, is that it directly affects you. For example, if the person’s house across the street from you is flooded, but it doesn’t quite make it to your own house, then it isn’t considered an interest of yours. If you want to get an insurance policy for it, then the interest has to be something that is your own, and something that is insurable.
Cheers,
Fashun Guadarrama.
California Auto Insurance Lemon Law
California auto insurance law has a few things to say about lemons, which will without a doubt get you both higher rates for car insurance and a higher amount of repairs while you own the so called vehicle. But what is a lemon, anyway, at least according to California auto insurance law?
- A lemon is…
The word lemon, when referring to a product, typically means that it has defects which make it to where it cannot complete its usage. It goes for any type of product, but is most often used as a name for vehicles which consistently have break downs and other mechanical problems over a short period of time. I had a lemon once, and believe me, it is not fun to constantly be broke because you have to pay for a huge car repair once a month or more.
These lemons are such a huge problem, that a subsection had to be created in California auto insurance law to make way for the lemon laws. The lemon laws define what a lemon is, allowing the owners of the lemons to sue the sellers if their vehicle fits the description. It also makes sure that the companies are protected by only allowing lawsuits over cars that do indeed fit the definition in the lemon laws.
According to California auto insurance law, a lemon is when a car continues with the same problem after three attempts at fixing it, or has continued with the same problem after an attempt at fixing it and as a result has been broken down for at least twenty days (which do not need to follow one after the other)
In order for you to be able to file a lawsuit under the lemon provision of the California auto insurance law, though, the lemon has to:
- have racked up at least 18,000 miles when you first informed the manufacturer about it
- either the manufacturer or the dealer has to try to fix the car, not just some guy you know who knows about cars
- has to be big enough to get in the way of the use or value of the vehicle
Should You Tell Your Auto Insurance Company You Bought a Lemon?
Reader question:
I bought a used car. I think it is a lemon. Do I have to tell my California auto insurance company? Should I file a lawsuit?
Laura
Thank you for asking, Laura.
You absolutely can get your lemon car insured through a California auto insurance company. However, since the car is not in good condition, you might find that the California auto insurance company charges you more because it is a higher risk and also less safe than other cars. If you shop around a bit, though, you can find the best price on your car, which can also be done by applying discounts to your policy with your California auto insurance company.
As for filing a lawsuit, unfortunately you are out of luck since you bought a used car. According to California auto insurance law, a lemon is only defined when you are able to deal with it through the original dealer and manufacturer, so it is only a term for new cars. The only way to make sure that you don’t get a used car that is a lemon is to get a mechanic to look at it and determine that it’s in good shape before you sign any papers.
California auto insurance law doesn’t protect you from sneaks and liars, so you have to practice the utmost responsibility on your own part. You should also consider that many used cars are simply run down pieces of junk, and not necessarily lemons. Lemon mostly applies to new cars with persistent problems which couldn’t or shouldn’t have been cause by the standard wear and tear.
However, if you do buy a used car that was called a lemon when it was new, then your dealer is supposed to tell you that it was a lemon. If the dealer does not do so, then you can get something out of it. However, you should check your CLUE report first and make sure that the car is really a lemon.
Cheers,
Fashun Guadarrama.
Getting Car Insurance In California
Almost all of your California car insurance necessities have been digitalized, and you could do everything except drive the car itself without ever leaving your living room. For example, for all of the needs that you have with your car in terms of the department of motor vehicles, registration, and so on, you can get most of those done online. Think of it! Not having to go to the department of motor vehicles in California is the dream of any car insurance policy holder. No lines, no rude employees, just a flat screen.
- Get your license plate.
When you go to the California Department of Motor Vehicles website, there is an array of license plate designs from which you can choose, purchase, and have mailed to you without lifting hardly a finger.
- Call ahead.
If you are not interested in the internet method of getting what you need, then make sure you don’t commit the mistake of just walking into the car insurance department. You need to give a call ahead of time to make sure that you have an appointment and don’t have to wait in the terribly long lines.
- Renewals.
So long as you have already provided the requirements, such as your proof of car insurance and a smog test, if necessary, you can renew things such as your car registration and your driver’s license online at the California Department of Motor Vehicles website. All you need is a working credit card to pay your way.
- Make sure it’s right.
You can also find out if the state of California has the right car insurance information for you. If you are listed as uninsured, then that could cause problems with tickets even if you are insured after all. To avoid problems, you can request that your information be corrected, and you might need to send proof of your current car insurance.
- Learn where to learn.
You can also get information about schools or driving classes in your area. These are a good idea if you want to get better premium rates on your car insurance. Consider taking defensive driving or just a regular introductory driving class.
- Pay your tickets.
Not only can you see what tickets you have out online, but you can pay them as well with your credit or debit card, and find out ways to wipe them off of your record. Getting your traffic tickets taken care of is a good way to get good car insurance rates.
California Auto Insurance – Am I Legal To Drive In Other States?
Reader question:
What rights do I have when I take my California auto insurance over state lines?
Amy
Thank you for asking, Amy.
There are a few standards set in place that help protect travelers while they are going around the country, without making them get insured in every single state. For one, your auto insurance policy will cover you all around the country, all around Canada, and also across the border of Mexico (but not too far across it). Whenever you go into a new state, if your limits on your coverage are lower than the ones required by your state, then they will magically adjust for the duration of your stay there. Then, if you should get into an accident, you will be protected by that states required limits.
Then there are no fault states. Normally, these states make it difficult to the residents of their state to sue for pain and suffering. However, if take your Califorina auto insurance over there, all bets are off. They can sue people from out of state, and you can sue them. Here are the no fault states:
- Florida
- Hawaii
- Kansas
- Kentucky
- Massachusetts
- Michigan
- Minnesota
- New Jersey
- New York
- North Dakota
- Pennsylvania
- Utah
It might be a good idea to look up a state’s liability car insurance laws before you go passing through it. You never know what kind of new coverage you will have if you don’t. All you have to do is go to the department of motor vehicles website, and it has the information for vehicle insurance laws for every state in the country. There are three states, such as New Hampshire, that do not require auto insurance coverage at all, so if you go to one of those states you should equip your California auto insurance with uninsured motorist coverage, and perhaps underinsured motorist coverage as well.
Cheers,
Fashun Guadarrama.
California Car Insurance Law – Do I Have To File a Claim?
California car insurance law doesn’t mandate that you file a claim after every accident. It’s entirely up to you to do so or not. Some people choose not to after some accidents because they don’t want the negative spot on their car insurance report, but you have to make the correct decision so that you don’t pay for it in the future. Most car insurance companies want you to at least tell them about an accident, even if you don’t file a claim, but in some cases that may not be advisable.
- Deductible.
Here’s the first test of whether or not you need to file a car insurance claim. There’s no California car insurance law about deductibles, but most companies have one for their extra insurance coverages, that is, not for liability but for all the rest. If your repairs are going to cost less than your claim, then there’s no reason for you to file a claim. However, if the repairs will cost more, then you should go ahead and file a claim.
Try to get an estimate from a reliable body shop before you make the decision about the price. If you aren’t sure about how much the repairs will cost, then you can’t make a valid decision about whether to file a claim or not.
- Other spots on your record?
Sometimes when you have a car accident, you’ll already have something on your car insurance record that makes you less than desirable, or high risk. If you already have a previous ticket for a moving violation, or if you have gotten into an at fault accident before, then you should check the law with the California department of insurance to see when a car insurance is able to decide on nonrenewal for you.
- Anybody there?
If you get injured, then you absolutely must make a car insurance claim. You never know what complications could happen, and even if you have health insurance, it is often the case that medical insurance will not elp you with things such as lost wages. If you need help with these things, then you will need to make a car insurance claim.
If there is another driver involved in the accident, then it is a good idea to at least tell your car insurance company. California car insurance law allows claimants to sue the other driver, so if the other driver comes up with a lawsuit and you haven’t said a word, then you’ll be in trouble.
California Auto Insurance Law And Diminished Value
One particular issue has been bugging California auto insurance law for awhile, and that is the right of the policy holder to receive diminished value payments for their vehicle after an accident. Along with such legal issues as credit insurance scoring (which many say is effectively discriminatory against minorities and low income people) and zip code scoring (same as the above), it holds a somewhat shaky ground in California , but it does hold ground.
- What is diminished value?
When you get into a car accident, California law will state that your car insurance must cover the damages of your vehicle if you meet the required conditions and have the right coverage. So, after your car has been fixed, perhaps you will decide to put your car up for sale or trade it in. One problem that you will face, though, is that when you put your once repaired vehicle up for sale, it will not sale for the value that it should.
This is not because of the regular depreciation. Let’s say that you’ve checked Kelley’s Blue Book and according to it and other calculations for the actual value of your car, it should sell for around ten thousand dollars. But you find that no one wants to take it for more than seven thousand. Why is that?
It’s because, when you repair your car, the value of it goes down because it is not so much in its original condition. The value drops even more when the car in question has been repaired with aftermarket parts.
- Can I make a claim for that?
According to California auto insurance law, no, you can’t. Thirty six states, in fact, have put language in their car insurance policies under the exclusions so that diminished value payments do not have to be made. According to a spokesman for State Farm, the value of a vehicle does not really decrease if the repairs are done by a mechanic with enough skill to return the car to its previous condition.
It remains to be seen whether diminished value exclusion language will be passed in every state, and whether or not the next step will be to file claims complaining about the person who apparently did not repair the vehicle as well.
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