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 ‘California Auto Insurance’
Cheap California Auto Insurance
January 30th, 2010California Auto Insurance – Simples Steps to Help Lower Your Auto Insurance Rates
January 25th, 2010
California auto insurance is compulsory for all drivers in the state. California is a tort state, which makes you financially responsible for injuries and damages in auto accidents. Maintain a good driving record with higher deductibles to arrive at affordable California auto insurance with sufficient coverage. Of course, other factors like number of miles driven each year, driving experience, etc. play prominent roles in deciding your insurance rates.
What decides my financial responsibility?
You can prove your financial responsibility in any one of the following ways:
Have an automobile liability insurance policy Surety bond for $35,000 from insurance company to do business in California Self-insurance certificate of DMV, if you own more than twenty-five vehicles Cash deposit with DMV for $35,000
What is the minimum coverage available?
California auto insurance offers minimum liability insurance of $15,000 for physical injury or death per person per accident, $30,000 for all persons affected in an accident, and $5,000 for damages to property per accident. Your insurance coverage should have this minimum coverage; otherwise, you should provide alternative methods of paying for damages due to any accident. California law does not make other coverage like collision, comprehensive, medical payments, uninsured motorist, etc. compulsory.
How you can acquire auto insurance?
There are many insurance companies in California offering different insurance rates for their policies. Different companies calculate their rates according to their experiences, expenses, losses, etc. You need to scout around for various insurance companies, agents, brokers, etc. to get a fair idea of different rates in same geographical region. You can take help of the Internet or call up different insurance companies to gather information. Thereafter, you can choose the most suitable insurance company, which offers necessary coverage at rates affordable by you.
What if no company is willing to insure my vehicle?
It is possible that no California auto insurance company is willing to provide you coverage. You can then receive liability coverage through California Automobile Assigned Risk Plan (CAARP). You need to approach such agents or CAARP directly. They then assign your application to any licensed insurance company. All such insurance companies have to accept CAARP applicants and there can be no broker’s fees or charges. You can take up a regular insurance from standard companies after three years of clean driving record.
By: Austin Davis
California Auto Insurance Laws – CA Car Insurance Laws That You Need to Know
January 24th, 2010
What are some of the California auto insurance laws that CA residents need to know? California is a tort law state for auto insurance, which basically means you can sue the other party if you are injured in a car accident. There are several other car insurance laws that consumers in the Golden State should be aware of before looking for car insurance.
In California, the law requires you to carry at least liability coverage in the limits of 15/30/5, which means:
$15,000 bodily injury coverage per person hurt in a car accident
$30,000 bodily injury coverage per accident in total
$5,000 coverage for property damage liability
This coverage is to protect others in case of an accident where you are deemed to be at fault. However, the minimum limits are very low and are unlikely to be sufficient to cover the expenses of a serious car accident. In this case you could be personally sued for the excess. For this reason it makes sense to carry higher limits of liability coverage.
There is a California which law requires insurers to give the lowest price to the consumer that he or she is eligible for. All companies operating in the state must have a toll-free number and/or a web site with quote capabilities available to consumers in order to meet the requirements of this law.
CA car insurance laws state that when you purchase liability coverage the insurer must offer you uninsured motorist coverage. If you decide against it, you must actually sign a form stating that you have declined this coverage.
Now that you are fully aware of the California auto insurance laws that you need to know, you are ready to start shopping for California car insurance. You can get started quickly and easily by using an online quote tool. In no time, you’ll be comparing a variety of quotes from top CA insurers.
By: James J. Robinson