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.
So You Had An Auto Accident – How Should You File a Claim?
Most people will get into a auto accident at least once in their lives, and many people will get into an accident several times. Practice makes perfect for the CA auto insurance accident veterans, but for those who are on the first go around, how many will know what they need to do in the event of an accident or have any type of detailed idea about what they need to do to start their claims process? Not many, which is why many people in the U.S. end up getting far less in claims payments than they are actually entitled to. If you follow the correct procedures, though, then you will be able to get the most out of your auto insurance claim.
- First step.
Once the accident has happened, you need to come to a stop and exchange information with the other driver. If either are injured, you need to call 911. If necessary, then you might also need to call the police so that they can come and file a report. The report will include a lot of necessary information for your auto insurance claim, and you should get the information as well and, if possible, a copy of the police report so that you can use it in your claim.
The police report will have info such as the kind of car driven by each person, their names and contact information, but it will also have details about the crash itself and anything that might have contributed to it, such as the weather or the conditions of the road.
- Then…
Your insurance policy will give you a period of time in which you are able to file your insurance claim. Try to get the claim filed as soon as possible, but you absolutely most file it in the time period provided. Make sure that you wait to have someone repair your car until an insurance adjuster comes out, looks at the car, and approves the repairs. It might still be a good idea to leave the car at a body shop (of your own choice or the one required in your auto insurance policy) so that they can’t say that any damages have occurred since the crash happened.
- Also:
This is actually going back before the insurance claim itself, but it certainly affects it. Many people every day are denied their auto insurance claims because they did not provide the auto insurance company the right information when they signed up for their policy. It is perfectly legal to do this. In order to avoid problems, you need to give the best information, and then double and triple check it.
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 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.
Auto Insurance Claim Filing in California – What To Do Next?
If you’ve gone and decided to make a claim for auto insurance in California, then you should be ready for the consequences. The second you call to report a car insurance accident, even if you do not end up filing a claim for it, that information goes straight to your file, and from your file it will go onto your CLUE report. This report, or something like it, is ordered by any company for auto insurance in California that you are considering getting a policy with, and the information will be used to determine whether or not they want to insure you, and how much they will charge if they decide that they will.
According to State Farm, all the companies for auto insurance in California are doing is trying to fulfill their obligation to you. You pay them every month, or every six months, or every year, or whatever it is, and so they are obligated to pay for your damages if you get into an accident. With their company, getting into an accident, even an at fault one, does not guarantee you an instant raise in your premium for auto insurance premium. Some people will have an accident forgiveness waiver, and others are looked at individually before a premium raise is given for the circumstances.
If you’ve been a good, long time customer, you might not see your rates raise even if you don’t have an accident forgiveness waiver, which are usually only for the first accident. Some things that State Farm and other companies for auto insurance in California consider are whether or not anyone was hurt, or if the damages were significant enough to warrant a huge payout.
I Need Help Understanding My Auto Insurance Policy
Reader question:
Where can I get some help in reading my California auto insurance policy?
Aaron
You can get it right here, Aaron.
Plenty of people find their auto insurance policy confusing. After all, the car insurance companies don’t exactly make it easy for people to understand, by inserting a lot of terminology that you have to be a car insurance broker to understand. However, what might seem like it was written in a foreign language can be come understandable if you only look for a minute at what everything actually means. It’ll take you less than ten minutes to read, and when you’re done you’ll have no excuse for not understanding the conditions of your auto insurance policy.
- Declarations.
This is the catch all area of your auto insurance policy. It has all of the information that you already know, such as your name and policy number, and it also lists the type of coverage that you are insured for. Another thing that this section has is the limits of your coverage and the required deductibles.
When you receive this paper, look over the information to make sure it is all correct. Make sure that your coverage, your limits, and your deductibles are right, but also check all of your personal information. If this is incorrect, then you might have a claim denied later on for having giving incorrect information on your CA auto insurance policy.
- Insuring agreement.
This area of your auto insurance policy goes into some more detail regarding your coverage purchased and the limits of that coverage. Read this section over so that you can understand what you are being offered and be clear on your coverage for claim time.
- Exclusions.
Here is the area of your auto insurance policy that goes into detail concerning what your coverage does not take care of. For example, if you only have liability, then it will say that you are not covered for damages to yourself or your vehicle. Compare it to the insuring agreement section for best understanding.
- Conditions.
Read this section a couple of times long before you need to file a claim on your insurance policy. Not only does it list the steps for you when filing claim, but it also gives you ways that you are able to solve any disputes with your car insurance company.
- Definitions.
Here’s a helpful section if you find the terms confusing. It defines them for you.
Cheers,
Fashun Guadarrama.
My Auto Insurance Was Just Canceled – What to Do?
Reader question:
Is it easy to get auto insurance in California after you’ve had your policy canceled?
Margeret
Thank you for asking, Margeret.
Actually, it can be pretty hard to get California auto insurance if you have something on your record like a previous cancellation by a car insurance company. This is why it is so important to take care with all of your automobile insurance dealings because if you don’t, then you will have to pay the price. And that price can be as much as a ten percent increase, and that’s only if you can find a company for auto insurance that wants to give you coverage at all.
When you go looking for auto insurance, the company will be able to look at your CLUE report, which aside from containing your claims history, will also have your previous cancellations and nonrenewals. This may influence them to deny your request for coverage, but if they do take you on then they might make you pay your entire yearly premium up front instead of allowing you to do the month by month installment. This can be a good thing for some people, because it is actually slightly more expensive for the installment plan. However, most people don’t have that much money at once.
Another thing that having your auto insurance canceled is that it will affect your credit score. Not all auto insurance companies report to credit agencies, but it is definitely something to think about even if they say you don’t, because most wouldn’t give a straight answer on this. Credit scores are also used hen determining how much you will pay for your auto insurance in California, and if you have a bad credit score, then that price could be pretty high. Even if your driving record is otherwise stellar, it could still hit you hard.
If all else fails, you’ll have to either go to a company for auto insurance in CA that sells policies to customers who are considered high risk. If you do this, you will pay more. And if no one will accept you, then you will have to consider going with the high risk pool for auto insurance which costs even more.
Cheers,
Fashun Guadarrama.
Looking For Affordable Southern California Auto Insurance Coverage?
If you have collision coverage on your Southern California auto insurance policy, then there is nothing wrong with trying to find out what the actual cash value payout would be on your car ahead of time. I have a 2007 PT Cruiser, and as it is a new car, it depreciates very quickly, as all new cars do. I went on a hunt to find the actual cash value of my car, and I’ll take you through the steps to show you how I found my own value and how you can find one for your own car.
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Step 1: Look for one that’s similar.
Primarily, your Southern California auto insurance company will look at what car dealerships around where you live are charging for your car, new and used. For my 2007 PT Cruiser, according to the website, the current MSRP is $15,530. This is around the same amount that my own cost me at my car dealership. If you have a rare car, it will be much more difficult to find these prices.
After the Southern California auto insurance company has these pri
ces, it will subtract or add based on the mileage. For example, if you have an older car and it bases its price on a car being sold nearby you that has more mileage than your own car, you will get more than that car is being sold for. If it has less, you will get less.
My car has twenty five thousand miles. If we compare this to another 2007 PT Cruiser being sold new, which will have 0 miles, then the price for my car would go down a couple thousand dollars, to $13,530.
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Step 2: Features.
After that, you will get more money added to the actual cash value according to how many more features your car has on it than the comparison car. For example, my PT Cruiser has power windows, locks, and a touch open hatch. If the comparison car does not have any of these, then my total will go back up to around $14,000.
It depends, also, on the type of option. Some options many people simply don’t care about, and would not care to pay more money for these opetions.
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Step 3: How does it look?
Your Southern California auto insurance company will then consider how your car looks at the moment, to account for some depreciation. For example, my own car has some stains on the seats, so that would account for, say, $200 of depreciation.
The way that they determine how much money will be taken from the actual cash value of your car is by grading each part of it, A through F. In the end, also considering that I just had a repair on my car, which would take off another couple hundred dollars, my actual cash value would be around $13,500.
I still owe around $17,000. Yikes! And that’s why I have gap insurance coverage on my Southern California auto insurance policy.
California Department of Insurance For Insurance Quotes?
I’ve been saying what a great place to visit the California Department of Insurance (DOI) website is for awhile. It has studies, statistics, phone numbers, complaint ratios–basically everything you need to know, practically, when attempting to make an informed decision about your online California auto insurance quote. Now they have another thing that will make it easier for Californian consumers to decide on their new auto insurance company.
Located on the California Department of Insurance’s website, this new online California auto insurance quote comparison is based on surveys among car insurance providers that has given the DOI an idea of what their quote rates will be like. While the surveys do not provide you with a specific number, they do serve as a great basis for deciding which California auto insurance company offers the best premium prices.
The risk and online California auto insurance quote comparisons are divided into groups, based on factors that would normally cause some fluctuation in your car insurance premium rate. For example, your gender, age, or amount of coverage. There is also a survey to take you through the online California auto insurance quote comparison, which will first inquire the amount of coverage that you want, and then continue narrowing the field through survey questions.
This service isn’t online offered for online California auto insurance quotes. It also extends to things such as home insurance, long term care, Medicaid supplementary insurance, and title insurance.
Low Cost California Collision Auto Insurance Coverage
Reader question:
What is low cost California auto insurance collision coverage?
Mandy
Thanks for your question, Mandy.
Many people only buy the minimal low cost California auto insurance coverage for their vehicle, because they think that they are fairly good drivers and would never get into a car insurance accident, at least not one that is their fault. Any accident, they assume, that they would get into would be covered by the other driver’s liability coverage. However, there are many cases where, despite how you feel about your own driving skills, you are required to add collision coverage to your low cost California auto insurance policy.
The main reason for which you would do this is when you are buying a brand new car. Most loan providers would require that you have collision coverage on your car until you have finished paying them for it, so you will have to add it to your low cost California auto insurance policy.
In some cases, they may not require it, but it is still a good idea to get it. If you are buying a new car, usually while you are paying it off you will at some point owe more for your car than it is actually worth. In these cases, should you total your car and you only have collision coverage, you will only get paid for the worth of your car, leaving you with several thousand dollars of loans to pay off. In order to avoid this, you must get gap insurance. But in order to get gap insurance, you have to have collision on your low cost California auto insurance policy.
Collision covers damage in an accident in which you are at fault, be it with another driver or just you backing into your second car in your driveway. Unlike liability coverage, collision comes with a deductible from your low cost California auto insurance policy. If you get into a car accident, then before you can get the check from your insurance company, you have to pay the deductible. I suggest that you make that deductible at least five hundred dollars in order to get low cost California auto insurance rates.
But how do you know if you need collision coverage, if it isn’t required? I would say that if your vehicle is worth less than one grand, don’t even think about it. It would just be a waste of money, even if you totaled your car. However, if you have a relatively new vehicle and you don’t have a stellar driving history, then I would seriously think about adding collision to my low cost California auto insurance coverage.
Cheers,
Fashun Guadarrama.
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