Californians are currently able to procure low cost, reduced limit automobile liability coverage. The California Low Cost Automobile Insurance Program (CLCAIP) is a new program that meets the financial responsibility laws of the State of California. These policies are accessible to competent citizens living in the counties of Los Angeles and San Francisco. To qualify, you need have a certain household income, driving record (the number of accidents and violations), and vehicle purchased value.
The voters of California enacted Proposition 103 (Prop.103) into law in November of 1988. Prop. 103 gives numerous consumer protections associated to buying and maintaining automobile insurance. Given below are some of the major provisions of Prop. 103 that protect your rights as an insurance consumer.
Prop.103 recognized a legal description of a “”Good Driver”" in this state. A Good Driver is someone who has been licensed for at least three consecutive years and has no more than one point on their driving record. Certain major violations may be considered for periods of seven years, such as a DUI (Driving under the Influence) conviction.
All automobile insurance companies licensed in California are required to tender coverage for Good Drivers. If you are a Good Driver and you are denied the opportunity to buy insurance from the company of your choice, then you can contact the California Department of Insurance for further action. Also, it is significant to note that your rates as a Good Driver should be lower by at least 20% to regular rates.
It also established new criteria that determine an insurer’s ability to cancel or non-renew your policy. There are only three bases on which an automobile policy can be canceled/non-renewed once it is issued: fraud/material misrepresentation, non-payment of the premium, or substantial increase in the hazard insured against.
By: Eric Morris
Posts Tagged ‘Automobile Insurance’
Cheap California Auto Insurance
January 30th, 2010Auto Insurance Student Driver
January 22nd, 2010
There are many issues, concerns, and considerations when thinking about automobile insurance for a student. Many of them have to do with discounts and savings, some have to do with options on coverages. Let’s dive in.
If the student is just getting their driver’s license, the parents can expect to see a hike in their insurance premiums. These hikes historically have been greater for boys than girls (though statistically girls are proving to have more accidents, so this trend is reversing). It is not unheard of for premium rates to increase as much as 50 to 100 percent. Yes, you read that correctly.
That leads to one of the primary courses of action one should take (whether you’re adding a student driver to your policy or not), and that is to do some comparison shopping. Not all insurance providers are created equal and one of the greatest differences may not become apparent until you see how they handle drivers in the 16 to 25 age range. It could pay you greatly to take the time and comparison shop.
The insurance industry is all a numbers game. That is they have researched which types of people tend to be better drivers (have less accidents and claims) than others. They have found a correlation between good grades in school and fewer accidents. Therefore, if a student maintains a B average they can qualify for a “good student discount” which may be as much as 5 to 10%.
Driver’s education program have become pretty much standard fare. Discounts do apply. Some states require such courses for a teen to get their license at age 16, otherwise, it will be at age 18. Driver’s education can provide a discount of up to15%.
Related to a driver’s education program is the safe driving programs that are specifically tied to some insurance providers. Some insurance companies offer their own driver’s safety program. Teens who apply for a complete these programs can qualify for another discount of up to 15%. Check with your insurance provider, or, this may be a consideration when doing your comparison shopping.
Another consideration that can greatly affect automobile insurance premium rates has to the with the car itself. Younger drivers (and many older ones) are greatly enamored with a certain kind of car – their dream car. Many times that translates into much higher premium rates. Cars with more safety features and less horsepower can be much less expensive to insure.
One final insurance matter that often applies to students has to do with short term auto insurance. Of course, the cheapest option is for a student not to be a full-time insured driver. That’s not always possible, but many university students can get by without having or using a car regularly. But the time does come when that person is going to have to drive. Temporary insurance can be secured for as short a time as one (1) day and up to twenty-eight (28) days. That may just fit the bill for a university student needing to drive home for a break or the end of a semester.
By: David Deffenbaugh
Auto Insurance Calculator – The Best Tool
January 8th, 2010
It is true that if you want to save money on auto insurance, the internet is the fastest and easiest way to go about it. Learn how to effectively shop for the right car insurance deal and get the most affordable rates in seconds. It is very true that a lot of people do not know how much insurance protection they have on their automobiles.
A lot of people also have doubts concerning the outcome from their auto insurance companies if there is an accident and the cars involved are damaged and people in the cars are injured. These issues can be very disturbing and costly with high chances of going to the law courts to settle problems. The lack of complete information on the quality of coverage is due to the fact that many car insurance customers simply buy the policies that were first suggested to them by their insurance agent.
It is true that a lot of people now use the auto insurance online calculator when shopping for the best coverage for the automobiles. This tool makes it so easy for vehicle insurance shoppers to get the right coverage that they need at the right price.
Note that an online car insurance calculator is simply a web tool or portal that asks some few and very important questions about the car owner. These questions highlight your automobile insurance needs and when you are done answering them; you will be given a well calculated amount of protection to buy at the right price.
This tool or web portal is very good at giving you the basic idea of your insurance need but it is important that you know that the figures you get are estimates. If your protection need is very unique, the estimate may not completely fit in. At this point, you need to use the free consultation services of auto insurance agents by simply speaking with one. Get more using an automobile insurance calculator and using free professional consultation services online.
Where To Start?
By: Iyke Phelim