<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=1700626273582757&ev=PageView&noscript=1" />

Car accident no insurance information exchange rate

Accident: A sudden, fortuitous event or an unexpected, unforeseen event, not under the control of an insured and resulting in a loss. Often used to refer to a collision or insurance event. See What to do after a car accident

Accident Forgiveness: In most states, customers who have not had an at-fault accident in the previous five years qualify for this program. Accident forgiveness means that some insurance carriers won't add a surcharge to your premium after your next at-fault accident. See Accident forgiveness: What's the catch?

Accident Frequency: The number of times an accident occurs. Used by actuaries (see definition below) to predict losses and appropriately base premiums.

Accidental Death Benefit (ADB): A supplementary life insurance policy benefit that provides a death benefit in addition to the policy’s basic death benefit if the insured’s death occurs as the result of an accident.

Act of God: Natural occurrence beyond human control or influence. Such acts of nature include hurricanes, earthquakes, and floods. See Acts of God and your car insurance

Actual Cash Value: The fair market value of property; technically, replacement cost less depreciation.

Actuary: A statistician who computes insurance risks and premiums. Actuaries keep insurance carriers profitable and financially stable by setting prices, assessing trends, and determining how much to hold in reserve to pay claims.

Additional Insured or Additional Interest: A person or an organization, other than the named insured or covered person, who is protected under the named insured's auto policy.

Adjuster: See Claim Adjuster.

Admitted Company: An insurance company authorized to do business in the state.

Adverse Carrier: Term used to refer to the other party's insurance company.

Adverse Selection: The tendency of those exposed to a higher risk to seek more insurance coverage than those at a lower risk.

Aftermarket Parts: Parts or accessories that are not a part of the original factory installed parts.

Agent: An individual who acts as a representative for the company and sells insurance, usually on a commission basis. This individual could be an 'exclusive' or 'non-exclusive' agent.

Agreed Price: The price or cost of repairs agreed to by the Auto Damage adjuster or independent appraiser and the body shop representative.

Agreed Value: A type of policy available for collectible, antique or custom vehicles that do not depreciate in value as the average car does. At the inception of your policy, you and your insurance company come to an "agreed value" for your vehicle and that is what will be paid out in the event of a total loss instead of actual cash value. See Auto insurance for collectible cars

Alien Insurance Company: An insurance company incorporated under the laws of a foreign country.

Amendment: A change to the basic policy contract. An amendment alters the policy; an endorsement (see definition below) adds to it.

Anti-Lock Braking system (ABS): A computer-controlled high pressure system that assists the vehicle's normal braking system. ABS allows all wheels to slow at the same rate, thereby preventing loss of control.

Anti-Theft Device: Devices designed either to reduce the chance an auto will be vandalized or stolen, or assist in its recovery. Examples include car alarms, keyless entry, starter disablers, motion detectors, parts of the vehicle etched with the Vehicle Identification Number, and recovery systems.

Application: A signed statement by a prospective insured requested insurance. This can be signed electronically.

Appraisal: Process that determines the value of property, or the extent of damage, usually performed by an impartial expert.

Arbitration: A process of settling a dispute through an impartial party. It is used as an alternative to litigation.

Assigned Risk: A driver or vehicle owner who cannot qualify for insurance in the regular market. He or she must get coverage through a state assigned-risk plan, which specifies that each company must accept a proportionate share of these drivers/owners.

Assured: Means the same as an insured, policyholder, or someone who has an insurance policy.

At-Fault: The party that is legally liable for the damages in an accident.

Auto Damage Adjuster: The auto damage adjuster is responsible for writing the repair estimate for your vehicle. This adjuster will also answer your questions about the repair process, your rental vehicle, or your total loss settlement.

Auto Damage Division: Division of a claims department that handles auto claims.

Auto Repair/Claim Repairs: Insurance carriers have programs that maximize convenience when you have an auto insurance claim. It allows you to complete your vehicle's repair process at one location. Some CarInsurance.com carrier's claims adjusters are on site to facilitate the repair process. Rental vehicle arrangements are available on-site through a rental car agency.

Auto Theft: The theft of an auto is a type of loss that is covered under comprehensive coverage.

Automobile Insurance: A form of insurance that protects against losses involving autos. Auto insurance provides protection from losses resulting from owning and operating an auto. The insurance covers losses to the insured's property and losses for which the insured is liable as a result of owning or operating an auto.

Automobile Insurance Plans: The name for "assigned risk" plans. These are plans set up and monitored by the state to help people who are unable to secure auto insurance through standard insurance carriers. See Assigned Risk.

Automobile Insurance Premium Discounts: Discounts offered to drivers for such safeguards as air bags, seat belts, good driving record, anti-theft devices, multiple vehicles, training courses, good grades, group membership, employment or degrees, pre-purchasing, low mileage, and renewal or prior insurance.

B - Back to Top

Basic Auto Policy: Although still used today to insure substandard risks, two-wheel motorized vehicles, and commercial autos, the Basic Auto Policy has been primarily replaced by the Personal Auto Policy, which combines both physical damage coverage and liability insurance for claims arising out of the ownership or use of a vehicle.

Binder: A temporary agreement declaring that the policy is in effect. Used in certain cases to protect a policyholder when it is not possible to issue or endorse the policy immediately.

Blue Book: A publication used for the determination of values for used automobiles and trucks. The full name of the publication is Kelley Blue Book.

Bodily Injury: An injury sustained by a person.

C - Back to Top

Cancellation: Termination of an insurance contract before the end of the policy period, by the insured or insurer.

Car Insurance: A form of insurance that protects against losses involving cars. Car insurance provides protection from losses resulting from owning and operating a car or vehicle. The insurance covers losses to the insured's property and losses for which the insured is liable as a result of owning or operating a car.

Carrier: The insurance company or insurer.

Catastrophe: A disaster affecting a specific geographic area. Catastrophes often cause injury or even death; most result in extensive property damage. Hurricanes, floods, tornadoes, and even large hailstorms are typical examples of catastrophes.

Certificate of Financial Responsibility: Depending on the state and Motor Vehicle requirement, this is a form certifying that specific coverage has been purchased to meet the state's Financial Responsibility laws. This could be an SR-22, FR-44, SR-50, or any other State Requirement certification form.

Certificate of Satisfaction: A form signed by the insured when he or she takes delivery of the car from the repairer. It certifies that he or she is satisfied with the vehicle operations, appearance, and visible quality of the repairs.

Claim: Any request or demand for payment under the terms of the insurance policy.

Claim Adjuster: A person responsible for investigating and settling a claim.

Claimant: Individual or entity presenting a claim.

Clause: A section in an insurance policy that explains, defines or clarifies the conditions of coverage.

CLUE® Report: Comprehensive Loss Underwriting Exchange (CLUE) report; provides claim history information.

Combined Single Limit: Bodily Injury and Property Damage coverage expressed as one single amount of coverage.

Commercial Lines: Products designed for and bought by businesses. CarInsurance.com offers Business Auto Policies and Commercial Auto Policies.

Commission: That portion of the premium paid to the agent as compensation for the agent's services.

Comparative Negligence: A doctrine of law that, in some states, may enable claimants to recover a portion of their damages even when they are partially at fault, or negligent. Each party's negligence is compared to the others and a claimant's recovery can be reduced by the percentage of his or her own negligence.

Competitive Auto Repair Parts: Parts made by a company other than the manufacturer of the auto. Parts meet or exceed the quality of the manufacturer's parts, but cost less. Most insurance carriers guarantee these parts for as long as you own the car.

Competitive Estimate: A term used when an insurance company requests that you submit multiple repair estimates for consideration.

Conditions: The portion of the insurance contract which outlines the duties and responsibilities of both the insured and the insurance company.

Condo Insurance: A type of homeowner's insurance that meets the special needs of condominium owners.

Continuous Coverage or Continuous Liability Insurance: Continuous coverage refers to the length of time you have maintained insurance on your vehicle.

Contract: A legal agreement between two parties promising a certain performance in exchange for a certain consideration.

Contributory Negligence: A doctrine of law that, in some states, may prevent claimants from recovering any portion of their damages if they are even partially at fault, or negligent.

Coverage: Protection and benefits provided in an insurance contract.

Covered Person: This refers to the individuals (named insured, spouse, resident relatives, etc.) insured under a policy contract.

Customized Equipment/Special Equipment: Items not included in standard insurance options available for cars. These may include extra electronic equipment, special paint or exterior items, or amenities added to the inside of a van or truck.

Customized Vehicle: A vehicle that has been altered or has equipment or accessories not typically found in a personal vehicle.

D - Back to Top

Damage: Loss or harm to a person or property.

Declaration Page: That page of the insurance policy which lists the insurance company, its address, name of the policyholder, starting and ending dates of coverage, and the actual coverages given in the contract, including the covered locations and amounts.

Declarations: The part of your policy that includes your name and address; the property that is being insured, its location and description; the policy period; the amount of insurance coverage and the applicable premiums.

Deductible: Usually, a dollar amount the insured must pay on each loss to which the deductible applies. The insurance company pays the remainder of each covered loss up to the policy limits.

Defensive Driver Course: These are classes either offered through or approved by Departments of Motor Vehicles to enhance driving skills. These courses may make drivers eligible for discounts on their premiums. Courses taken for traffic school because of a moving violation are not eligible.

Defensive Driver Discount: Certain drivers (usually over age 50) who have voluntarily taken a defensive driving course may qualify for this discount on their auto insurance premiums.

Depreciation: The decrease in value of any property due to wear, tear, and/or time. Generally, depreciation is not an insurable loss.

Discount: A reduction in your premium if you or your car meets certain conditions that are likely to reduce the insurer's losses or expenses. For example, auto insurance discounts are given for cars with auto theft devices and for drivers and passengers who use seat belts.

Domestic Insurance Company: An insurer domiciled in this state.

Drive-In Claims Office - Concierge Claims Service: An office or location that allows drivers to have simple, one-stop access for claims coverage.

Drive-Other-Car Endorsement: Optional coverage that broadens the definition of a covered auto to include non-owned vehicles the insured person operates.

Driver Education: State accredited educational course that consist of at least 30 hours of professional classroom instruction.

Driver Improvement Course: A voluntary refresher course available for drivers age fifty-five (55) and older to enhance their driving skills.

Driver Training: State accredited training course that consists of time spent behind-the-wheel with professional instruction.

Driver Training Discount: A discount for people who have taken an approved driver training course. This discount is not available in all states or for all individuals.

E - Back to Top

E-Bill: An electronic version of your bill that you can review online. Most utility services and banks offer these services. Some CarInsurance.com insurance companies offer this ability.

E-Commerce/Electronic Commerce: The sale of products such as insurance over the Internet

Earned Premiums: The portion of premium that applies to the expired part of the policy period. Insurance premiums are payable in advance but the insurance company does not fully earn them until the policy period expires.

Economic Loss: Total financial loss resulting from the death or disability of a wage earner, or from the destruction of property. Includes the loss of earnings, medical expenses, funeral expenses, the cost of restoring or replacing property and legal expenses. It does not include noneconomic losses, such as pain caused by an injury.

Effective Date: The date that coverage begins on an insurance policy.

Electronic Funds Transfer (EFT): EFT is an electronic payment method that lets you pay your premiums with automatic deductions from your checking account.

Emergency Road Service Coverage: Protection for problems that are not typically handled but your auto insurance, such as: being locked out of your car, towing not related to an accident, having a dead battery re-charged, inflating a flat tire, filling an empty gas tank. (Also referred to as Towing and Labor)

Endorsement: A document, which is attached to the policy and modifies or changes the original policy in some way.

Estimate: As assessment of the cost to repair your damaged property.

Exclusion: Section of the insurance policy, which list property, perils, person, or situations which are not covered under the policy.

Experience: Can refer to many items such as driving record history or record of losses.

Experience Rating: Determination of the premium rate for an individual risk, made partially or wholly on the basis of that risk's own past claim experience.

Expiration Date: The date your coverage ends. There is usually a time of day associated with this date, for example, an expiration date of 5/1/2002 at 12:01am. This means your coverage ends one minute after midnight on the date listed.

Exposure: Possibility of loss. Insurance companies set rates based upon exposure.

Extended Non-Owner Liability: An endorsement that provides broader liability coverage for specifically named people operating any non-owned automobile or trailer. It covers non-owned autos, use of autos to carry people or property for a fee, and individuals driving employer-furnished cars who do not own vehicles themselves.

F - Back to Top

Family Automobile Policy: Now replaced by the Personal Auto Policy, the Family Auto Policy was a package policy in which both liability and physical damage protection to an insured's vehicle was offered on one policy.

Field Adjuster: An insurance adjuster who works primarily outside of an office and often meets personally with the public. Field adjusters can conduct face-to-face meetings, negotiations with claimants, scene investigations, and damage inspections.

Financed Car: A vehicle financed by a loan. The lender retains a lien on the auto until it has been paid off.

Financial Ratings: Financial ratings reflect a rating organization's opinion on the financial strength and ability to meet ongoing obligations to policyholders. The ratings organizations most commonly identified with the insurance industry are AM Best, Standard & Poor's and Moody's.

Financial Responsibility Law: Financial responsibility laws require owners and operators of autos to maintain enough money to compensate those they injure. Liability insurance is the most common way to satisfy these requirements.

First Party: Term used to refer to an insured.

First Party Benefits: This pays policyholders and others covered by the policy in the event of injury, no matter who caused the accident. The benefits can include medical expenses, loss of income, funeral and death benefits. This may also be called Personal Injury Protection.

First Party Claims: A claim for damage, loss or injury made by an insured.

Flat Rate Cancellation: Termination of an insurance contract at inception. This policy is never in effect.

Forced Placed Insurance: Insurance purchased by a bank or creditor on an uninsured debtor's behalf to cover the property, so that the creditor receives payment if the property is damaged or destroyed.

Foreign Insurance Company: An insurer domiciled in another state.

Forms: This can be any part of your insurance policy. This may be an SR-22 form or a policy form like your application, declaration page or policy jacket. Typically, all are available in Adobe's PDF format.

Fraud: A false statement intended to deceive the insurer and induce it to part with something of value or surrender a legal right. May void a policy.

G - Back to Top

Gap Insurance: If you are making lease or loan payments and you experience a total loss, there may be a difference (gap) between the market value of your vehicle and what you still owe on it. This optional coverage pays the difference.

Garage Location: The zip code where your vehicle is parked when not in use and usually corresponds to your primary residence.

Good Student Discount: May be awarded to full-time students who maintain a grade average of "B" or better. Each carrier has specific rules that may apply.

Guarantee Funds: All 50 states, the District of Columbia and Puerto Rico require licensed insurers to assume some of an insolvent insurance company's policyholder liabilities. These funds are used to bail out the policyholders of companies that fail.

H - Back to Top

Hazard: Anything that increases the chance of an accident occurring.

Hit and Run: An accident caused by someone who does not stop to assist or provide information.

Homeowners Insurance: Protects homeowner's from losses to their homes, personal property, and some types of damage or injury to others for which the homeowner is liable. Homeowner's insurance is subject to the terms, limits and conditions of your policy contract.

I - Back to Top

ID Card: A card issued by your insurer containing basic information about your insurance policy. Some states require you to keep an ID card in your vehicle.

Inception Date: The date that coverage begins on an insurance policy.

Indemnification: The act of providing compensation for a loss with the intent to restore an individual or entity to the approximate financial position prior to the loss.

Indemnity: A principle of insurance which provides that when a loss occurs, the insured should be restored to the approximate financial condition occupied before the loss occurred, no better, no worse.

Independent Adjuster: An individual who estimates losses on behalf of an insurance company, but is not an employee of that company.

Inspection: Verification of a vehicle's physical condition.

Insurable Interest: Exists when an individual would suffer an economic loss as the result of damage to property or bodily injury.

Insurance: Insurance is a system in which groups of people who have similar chances of suffering a loss transfer their risk of loss to an insurer who pools the risk of many people together. In exchange for payment of premium, the insurer promises to reimburse the person for their covered losses.

Insurance Fraud: The act of falsifying or exaggerating the facts of an accident to an insurance company to obtain payment that would not otherwise be made. Common types of insurance fraud are staged accidents, exaggerated injuries, and inflated medical bills.

Insurance Score: Confidential ratings used for underwriting in some states as a rating tool. It may include information about the consumer's payment history, the number of open accounts and if bankruptcy has been filed. It is a measure of how financial affairs are managed and does not include assets, income information or race information.

Insured: A person or organization covered by an insurance policy.

Insurer: An organization that provides insurance.

J - Back to Top

Joint Underwriting Association/JUA: Insurers which join together to provide coverage for a particular type of risk or size of exposure, when there are difficulties in obtaining coverage in the regular market, and which share in the profits and losses associated with the program. JUAs may be set up to provide auto and homeowners insurance and various commercial coverages, such as medical malpractice

L - Back to Top

Lapse in Coverage: A point in time when a policy has been canceled or terminated for failure to pay the premium, or when the policy contract is void for other reasons.

Leased Vehicle: A vehicle rented under a long-term contract (lease). The leasing company retains ownership of the vehicle and must be shown on your insurance policy as an insured. See also: gap insurance.

Legal Liability: Liability imposed by law, as opposed to liability arising from an agreement or contract.

Lender: Your lender is the institution to which you make car payments.

Lessor: Your lessor is the institution to which you make your lease payments.

Liability: Any legally enforceable obligation or responsibility for the injury or damage suffered by another person.

Liability Adjuster: The liability adjuster handles the investigation of the accident. These adjusters' responsibilities can include collision payments, property damage payments, and bodily injury settlements. In some states, these adjusters may also handle the medical portion of your claim.

Liability Insurance: Insurance providing money on behalf of the policyholder to pay because of bodily injury or property damage caused to another person and covered in the policy.

Liability Investigation: The process of gathering information to determine the cause of an accident.

Lien: A claim, charge, or encumbrance on property as a security for the payment of a debt.

Lien holder: A person or organization with a financial interest in property up to the amount of money borrowed or still owed on the property.

Limit: The maximum amount of protection purchased by the insured for a specific coverage.

Limits of Liability: The maximum amount of insurance the insurance company will pay for a particular loss, or for a loss during a period of time.

Line of insurance: The type or kind of insurance such as personal lines, life insurance or homeowners

Loss: Any measurable dollar cost of damage and/or injury suffered by a person.

Loss of Use: Compensation to a third-party claimant for financial consequences resulting from the inability to use property as the result of accident-related damage.

Loss Payee: A person or entity with a legally secured insurable interest in another's property, usually a financial institution that loaned money to buy a car. The car is the loan collateral. If the auto is damaged in an accident, loss payments will be made to you and to the loss payee on your policy.

M - Back to Top

Malicious Mischief: Intentional damage of personal property with malice of forethought.

Material Damage: All property-related damage losses covered by the policy. This includes the following: Property Damage (PD), Comprehensive damage (COMP), Collision damage (COLL), Fire/Theft Combined Additional Coverage (FTCA), Rental Reimbursement (RREUN), or Uninsured Motorist Property Damage (UMPD).

Material Misrepresentation: The policyholder / applicant makes a false statement of any material (important) fact on his/her application. For instance, the policyholder provides false information regarding the location where the vehicle is garaged or fails to disclose all the residents in a household.

Mechanical Breakdown Insurance: Covers repairs to all mechanical parts of the car.

Medical Adjuster : The medical adjuster is responsible for reviewing all medical bills, replacement/essential services, and lost wages submitted to the company for injuries sustained by you and/or the passengers in your vehicle (depending upon the state in which you live and the coverage on your policy).

Medical Payments Coverage: Pays medical expenses related to an automobile accident. This coverage is subject to the terms, limits and conditions of your policy contract.

Minimum Limits of Liability: The least amount of liability coverage that can be purchased, which is generally equivalent to the minimum amount required by state law. In determining rates, a carrier will use the basic limits to develop the base rates. If an insured person wants higher limits, the carrier applies an increased limits factor to the base rate in calculating the new premium for the increased coverage.

Misrepresentation: To make written or verbal statements that is untrue or misleading.

Motor Vehicle Record (MVR): A report from the agency that issues your driver's license, listing accidents and violations that appear on your driving record. This report is used to verify information provided by insurance applicants and policyholders.

Motorcycle Safety Foundation (MSF): An international non-profit organization dedicated to motorcycle safety training, research and awareness. Some applicants who complete MSF courses qualify for discounts for motorcycle insurance.

Multi-car discount: A discount offered by some insurance companies for those with more than one vehicle insured on the same policy. In some cases, if you drive a company car insured by your company, your own insurance company may give you the multi-car discount.

N - Back to Top

Named driver exclusion: Endorsement on your auto policy that excludes a particular driver who has access to your car from coverage.

Named Insured: Any person, firm or corporation designated by name as the insured person(s) in a policy. Others may be protected by policy definition even though their names aren't on the policy, such as other drivers operating (with consent) the named insured's covered auto.

Named Non-Owner Policy: A policy endorsement for one who operates any non-owned automobile on a regular basis, such as driving a car provided by one's employer.

National Insurance Crime Bureau (NICB): A not-for-profit organization that partners with insurers and law enforcement agencies to facilitate the identification, detection, and prosecution of insurance criminals. The NICB receives support from over 1,000 property/casualty insurance companies.

Negligence: The failure to exercise the care that is expected of a reasonable person in similar circumstances.

No-Fault Insurance: May pay for your medical treatment, lost wages, or other accident-related expenses regardless of who caused the accident. This coverage is subject to the terms, limits and conditions of your policy contract and is not available in all states.

No-Loss Form: A statement that is a signed form telling the insurance company there have not been any losses since a certain date. The document usually includes a cancellation date, expiration date, and reinstatement date. etc.

Non-Owned Auto: Any vehicle that is not owned, borrowed, or leased by the insured, and which is used primarily for a business purpose.

Non-Owner Car Insurance: A policy providing liability coverage to a driver who does not own a vehicle, used to avoid gaps in continuous coverage, provide rental-car liability or to satisfy state requirements to reinstate a driver's license or SR-22 filing.

Non-Renewal: When an insurer decides not to renew a policy at the end of its policy period.

O - Back to Top

Occasional Driver: The person who is not the primary or principal driver of the vehicle.

Occurrence: An event, or repeated exposure to conditions, which unexpectedly causes injury or damage during the policy period.

Original Equipment Manufacturer Parts: Auto parts obtained from the original manufacturer of the car or the supplier of the original part.

P - Back to Top

Passive Restraint System: A passenger safety system, such as an air-bag, that activates automatically in the event of an accident.

Payment Plans: Your auto insurance premium can be paid using one of our installment payment plans; you make several smaller payments but incur a service fee.

Payment Recovery: If your car is damaged because of another driver's negligence and you ask your insurance carrier to settle the claim for damage to your vehicle, we will seek to recover your deductible and our payments from the other party. This process of payment recovery is also called subrogation.

Per Occurrence Limit: This refers to the cap amount an insurance company will pay for all claims arising from a single incident. In an automobile accident, it comprises bodily injuries sustained by all parties. When Bodily Injury coverage is purchased in split limits, the second limit is the "per occurrence" limit: e.g. $100,000(per person)/$300,000(per occurrence)

Per Person Limit: This refers to the cap amount an insurance company will pay for any one person's injuries arising from a single incident. In an automobile accident, it comprises bodily injuries sustained by each person. When Bodily Injury is purchased in split limits, the first limit is the "per person" limit: e.g. $100,000(per person)/$300,000(per occurrence)

Peril: A danger or hazard that can cause a loss, for example, a car collision with an object, or a fire.

Personal Auto Policy: The most common auto insurance policy sold today. Often referred to as "PAP," this policy is written in simple wording and provides coverage for liability, medical payments, uninsured/underinsured motorist coverage, and physical damage protection.

Personal Injury Protection: May pay for your medical treatment, lost wages, or other accident-related expenses regardless of who caused the accident. This coverage is subject to the terms, limits and conditions of your policy contract

Personal Property: Property that is not land or connected to land (real estate), such as furniture or jewelry.

Physical Damage: Damage to your covered vehicle from perils including (but not limited to) collision or upset with another vehicle object, fire, vandalism and theft.

Physical Damage Coverage: Pays for damage to your car this could be through Collision Coverage or Comprehensive Coverage (Also referred to as Other Than Collision)

Policy: The written documents of a contract for insurance between the insurance company and the insured. Such documents include forms, endorsements, riders and attachments.

Policy Change: Any change made to your insurance policy during the period that the policy is in force.

Policy Lapse: A point in time when a policy has been canceled or terminated for failure to pay the premium, or when the policy contract is void for other reasons.

Policy Limit: The maximum amount a policy will pay, either overall or under a particular coverage.

Policy Period: The period of time in which a policy is in effect. (For example, six months or one year).

Policy Term: The length of time that the policy is in force. Most companies offer annual and semi-annual policies.

Policyholder: One who maintains ownership in an insurance policy. This may refer to the policy owner or those covered under the policy. See also Named Insured.

Pre-accident Condition: The state of the vehicle before the accident, including damage not related to the accident, mileage, options, and other factors.

Preferred Risk: Any risk considered to be better than the standard risk on which the premium rate was calculated.

Premium: The price of insurance an insured person pays for a specified risk for a specified period of time.

Premium Financing: When a policyholder contracts with a lender to pay the insurance premium on his/her behalf. The policyholder agrees to repay the lender for the cost of the premium, plus interest and fees.

Primary Insurance: Insurance that must be maintained as a condition of the most Personal Umbrella Policies. Primary insurance acts as the first layer of coverage on common types of losses. This usually includes auto, motorcycle and homeowner insurance, but may also include boat insurance, commercial liability or some other policy. Please check your insurance policy documents for more detailed information.

Primary Use: What your vehicle is mainly used for (pleasure, to and from work, business, commercial, or farm).

Principal Driver: The person who drives the car most often.

Private Passenger Automobile: A four-wheeled motor vehicle that is subject to motor vehicle registration and used for private personal use.

Private Passenger Autos: Ordinary cars, station wagons and jeeps, utility autos (pick-ups, panel trucks and delivery vans of 1,500 lbs. or less, not used commercially) and utility trailers designed to be pulled by a private passenger auto.

Pro Rata Cancellation: Termination of an insurance contract before the policy expiration date on which the premium returned to the insured person is adjusted in proportion to the amount of time the policy was in effect.

Proof of Loss: A statement made regarding the extent of the claim; it may be requested in accordance with the conditions of the policy.

Property Damage Liability Coverage: Pays for damage to someone else's property resulting from an accident for which you are at fault and provides you with a legal defense. This coverage is subject to the terms, limits and conditions of your policy contract.

Proximate Cause: An act or omission initiating an unbroken sequence of events resulting in injury to a person or damage to property.

Q - Back to Top

Quote: A statement of the premium that will be charged for insurance coverages based on specific information provided by the person requesting the quote including drivers, vehicles, and driving record.

R - Back to Top

Rate: Often used as a synonym for premium but actually refers to the base rating units that are used to determine the final premium.

Rating Plan: The rules that determine the cost of your insurance premium. These rules modify the base rates by applying discounts and surcharges based on your personal characteristics, for example, using your seat belt,

Rebate: A reduction of a premium.

Red Book: A publication used for the determination of values for used automobiles and trucks.

Reinspection: A review of an estimate or appraisal done by an adjuster during or after repairs to a vehicle. This is done to guarantee the accuracy of staff or independent auto damage personnel, and to guarantee that the work required in an estimate or appraisal is being completed by the body shop.

Reinstatement: The restoring of a cancelled policy to full force and effect. The reinstatement may be effective after the cancellation date, creating a lapse of coverage. Some companies require evidence of insurability and payment of past due premiums plus interest. They may also require a signed no-loss form.

Reinsurance: A form of insurance that insurance companies buy for their own protection, used and required to pay for losses and claims.

Release: Legally binding contract stating that all obligations past, present or future arising from a particular accident or occurrence have been fulfilled.

Renewal: The process of keeping an active policy in force through the issuance of a renewal policy.

Renewal Date: The date that your insurance policy expires and the date that your renewed policy will begin.

Rental Reimbursement: Optional coverage that helps pay rental vehicle costs when your insured vehicle is disabled as the result of a covered accident or loss. Available to most policyholders for an additional premium.

Renter's Insurance: Insurance that provides protection from losses that arise out of the rental of a home. Protection covers losses to the insured's property, not to losses that occur as a result of owning a home.

Replacement Cost: The cost to repair or replace an insured item. Some insurance only pays the actual cash or market value of the item at the time of the loss, not what it would cost to fix or replace it. This will pay the full cost to repair an item or buy a new one to replace the damaged item.

Replacement Parts: Several types of parts may be used when your vehicle is repaired: new parts, both original equipment manufacturer and after-market; and recycled parts. New or after-market parts will be used if a carrier can't find like-kind and quality recycled parts. A 5-year-old car, for instance, would be repaired with parts at least as good as the parts that had been in the car.

Replacement Value: The full cost to repair or replace the damaged property with no deduction for depreciation, subject to policy limits and contract provisions.

Resident Adjuster: Staff adjuster who handles claims in remote areas of a region.

Rider: In motorcycle insurance, a rider is someone who will operate the insured motorcycle. In life and health insurance, the term "rider" is often used to refer to an endorsement to an insurance policy.

Risk: The chance of suffering a loss.

S - Back to Top

Safe Driver Plan: A rating system that assigns points for traffic convictions and certain accidents. Similar to a merit-rating plan, each point increases the surcharge percentage to the baseline rates.

Salvage Title: A title of ownership on a car that was once deemed a total loss by an insurance company, but has since been repaired and allowed back on the roadways.

Select Repair Shop: Body shops chosen by your insurance carrier that are authorized to handle the repair of insured vehicles without the need for an inspection by an assigned adjuster. Vehicle owners should always have the right to choose the body shop of their choice.

Self-Insured Retention: In umbrella insurance, self-insured retention is similar to a deductible in other types of insurance. The self-insured retention is the amount of damages for which the policyholder is responsible before the umbrella coverage begins to cover a loss.

Short Rate Cancellation: A policy termination in which the refunded premium is not proportional to the amount of time remaining in the policy period due to the fixed expenses incurred by the company. The insured will generally pay more for each day of coverage than if the policy had remained in force throughout the entire policy period.

Special Investigation Units: Your insurance carrier helps fight fraud through its special investigation unit, staffed with experts in fraud detection and investigation. Sounds official.

Split Limit: Any insurance coverage with separately stated limits for different types of coverage. Example: an automobile liability policy of 100/300/50 provides a maximum of $100,000 bodily injury coverage per person, $300,000 bodily injury coverage per accident, and a property damage limit of $50,000 per accident.

SR-22: An SR-22 (CFR) is a certificate mandated by the state to verify that an individual is maintaining auto insurance liability coverage. If a person needs an SR-22 (CFR), they will usually be notified by their state's Motor Vehicle Department.

Stacking of Limits: The application of more than one policy limit to the same loss or occurrence. In some jurisdictions, courts have required stacking of limits when multiple policies, or multiple policy periods, cover an occurrence. For example, Uninsured motorist bodily injury limits of $100,000/300,000 on two policies owned by the same person may be added together to pay a loss. In this event, the total amount of coverage available for an accident would be $200,000/600,000.

Staff Adjuster: A non-contract or per-job adjuster that is typically employed by your insurance carrier to handle claims.

Subrogation: If your car is damaged because of another driver's negligence and you ask your insurance carrier to settle the claim for damage to your car, we will seek payment recovery (including your deductible) from the other party. This process of payment recovery is called subrogation.

Supplement/Supplemental Estimate: Used to cover damage not included in the original estimate. Most claims settlements do their best to estimate costs, if they are wrong you are entitled to any additional money to settle your claim. This is paid with a supplement.

Surcharge: An extra charge applied by the insurer. For automobile insurance, a surcharge is usually charged for items like accidents, moving violations, or specific risks not handled by normal rating factors.

T - Back to Top

Term: The length of time for which a policy or bond is in force.

Theft: The unlawful taking of another's property with the intent to permanently deprive the owner of its use or possession.

Third Party: Person or entity not party to an agreement but with an interest in the agreement.

Third Party Claim: Claims for injury or damage to property of a third party alleged to have been caused by the insured.

Threshold Level: Under some no-fault insurance laws, the threshold level represents the degree of injury a claimant must establish before being allowed to sue the negligent party. The threshold may be verbal (regarding the severity of the injuries) or a dollar amount ($10,000), or both. For example, with a threshold of $5,000, an injured person may sue if his/her injuries and other economic damages (rehabilitation expenses, loss of income, etc.) exceed $5,000.

Tort: A private wrong or harm (other than a breach of contract) committed against another, resulting in legal liability. A tort is either intentional or accidental (negligent). Automobile liability insurance is purchased to protect one from suits arising from unintentional torts.

Tort Feasor: One who commits a tort (see the definition of tort).

Total Loss: The condition of an automobile or other property when damage is so extensive that repair costs would exceed the value of the vehicle or property.

Towing and Labor Costs: This endorsement, which is added to the physical damage coverage, provides reimbursement up to a specified limit to tow your vehicle or pay for on-site labor costs.

Transportation Expenses: Subject to a daily and maximum dollar limit, this coverage (under the physical damage portion of an automobile policy) pays for transportation expenses incurred by the named insured only in the event of theft of an entire covered auto. Coverage generally begins after a stated minimum waiting period.

U - Back to Top

Umbrella Insurance: Provides high limits of additional liability coverage above the limits of your homeowner's and auto policy. In addition, it provides coverage that may be excluded by other liability policies.

Underinsured: The result of the policyholder’s failure to buy sufficient insurance. An underinsured policyholder may only receive part of the cost of replacing or repairing damaged items covered in the policy.

Underwriting: The process an insurer goes through to determine whether or not it will provide coverage for an applicant.

Unearned Premium: The portion of your premium remaining on your policy term. For example, with a six-month premium, at the end of the first month of the premium period, five-sixths of the premium is unearned by the insurance company.

Uninsured Motorist Coverage: A type of car insurance coverage that protects you if you're hit by a driver without insurance. If you don't have uninsured motorist, and you're hit by an uninsured driver, you may need to pay out of pocket for damages to your car.

Unsatisfied Judgment Fund: Some states have established laws to reimburse those injured in auto accidents that have been unable to collect from the responsible party.

Usage: This refers to the primary function or purpose in which you intend to operate your vehicle. For example, if you primarily drive your car to and from work, the usage is considered "commute; "if you're self-employed and you primarily drive to see customers, the usage is considered "business;" if you're retired, your usage is considered "pleasure."

V - Back to Top

Vandalism: Destruction or defacement of property.

Vehicle Identification Number (VIN): A 17-digit number assigned to each vehicle manufactured in the United States after 1980. This number is used for identification purposes and is visible on the dashboard when viewed from the outside of the car. It indicates many identifiers including make, model, options, and year in official records (like a Social Security number for your car).

Void: A policy contract that for some reason specified in the policy becomes free of all legal effect. One example under which a policy could be voided is when information a policyholder provided is proven untrue.

W - Back to Top

Waiver of Collision Deductible: This option pays your collision deductible when you carry collision coverage on a vehicle that is damaged by an uninsured or hit-and-run motorist who is at fault. Coverage applies only when there is actual physical contact and when you can identify the uninsured driver or vehicle.

Whole Dollar Premium: Generally, insurance premiums are rounded to the nearest dollar; an amount of 51 cents or more being rounded up to the next dollar, and any amount less than that the cents are dropped.

Source


Share Pin Tweet Share EmailShares 391

UPDATE: If you’re looking for a rideshare friendly policy, we’ve actually got a list of insurance options by state available here: http://therideshareguy.com/rideshare-insurance-options-for-drivers/

More and more states/companies are adding options every day so make sure you bookmark that page and check back often as we are constantly updating it!

Car insurance providers indiana

I get e-mails all the time from drivers who get into accidents while driving for Uber and Lyft and have no idea what to do.  Unfortunately, accidents do happen and instead of waiting until it’s too late, I can’t stress how important it is to take a proactive approach and figure out what you need to know ahead of time.  

Today, RSG Senior Contributor, Scott Van Maldegiam, takes a look at what happens after you get into an accident while driving for Uber or Lyft.  Scott has years of experience in the insurance industry and his review is one of the most thorough guides I’ve seen on the subject to date.

As with many things in life, it isn’t a matter of “if” but a matter of “when”.  When the time comes and you have an accident while rideshare driving, you will want to be prepared.  You can ignore the risk and pretend that you’re the best driver on the road, but at the end of the day, the more you drive, the more likely it is that you will get into an accident.

Affordable car insurance in maine

How to Handle Rideshare Insurance After a Car Accident With Uber or Lyft

Understanding what to do in the event of an accident and how the process works will help to relieve some of the stress that is involved with each and every accident.  This article should help prepare you for the inevitable but working with a good personal agent is probably your next best bet.

More and more states are starting to offer rideshare friendly policies which means there are more and more agents that you can contact for help.  You can find a full list of rideshare insurance options by visiting our Rideshare Insurance Page where we also have recommendations for local agents who know what type of policies drivers need.

Insurance Basics – things to know before you have an accident

Let’s talk a bit about how insurance works in general when you get into an accident.  I will be talking exclusively about states that assign fault.  No fault states simplify things as your insurance company will always pay your damages regardless of fault, but most states assign fault and financial responsibility.

If you are at fault

This means that you and your insurance company bear the brunt of the financial responsibility.  Here are the different pieces of the insurance policy and what they apply to:

  • Liability – This part of your policy will cover damage to other cars, property and people that were involved in the accident.  Any injured persons that were in your car that are not direct family members are covered by liability as well.  There is no deductible for any liability claims.
  • Collision – This part of your policy covers damages to your own vehicle.  There is usually a deductible associated with collision insurance and varies policy to policy.
  • Medical – This is one of the most misunderstood parts of insurance.  Medical insurance covers yourself and anyone else in your car for medical expenses prior to assignment of fault.

If the other driver is at fault

This is certainly a better situation than the first example, but this is where most people get confused.  Coverages are used differently.

  • Liability – Not used here since you were not at fault.
  • Collision – This coverage is used temporarily until your insurance coverage can get payment from the other insurance company.  With most insurance companies, you will be subject to a deductible until the other insurance company pays.
  • Uninsured/Underinsured – This coverage is to protect you and your passengers should you get into an accident with an uninsured driver.  This coverage will pay out in the case the other person is at fault but does not have insurance.
  • Medical – This covers you and your passengers until the other insurance company pays.

If the other driver is at fault, your insurance company should pay for the damages (mostly) and has a legal right and responsibility to collect from the insurance company of the at-fault party.  This is a valuable service that insurance companies perform if you allow them to,  if the damages are higher than your collision deductible and/or if there are injuries.

If fault needs to be determined, then it is handled like the other person is at fault until responsibility for the accident can be assigned.

What do you do in the case of an accident

With all the boring, but important, background information out of the way, here is what you should do if you get into an accident while in a ride request with Uber, Lyft or Sidecar.

  • Keep your wits about you – The first few minutes after an accident are very important.  Here is what you need to gather.
    • License plate – Make sure you get the license plate of the other car in case they decide to take off.
    • Exchange information – Take pictures of the other person’s insurance card and drivers license.  Allow them to do the same.
    • Listen – It is more important to gather information than it is to provide information.  If you aren’t sure what happened, don’t be afraid to say “I don’t know.”  Also, pay attention to what the other party or parties are saying about the accident.  People who know they are at fault but don’t want to admit it will often lie to get out of the accident.  These lies usually contradict the evidence but it is especially important to note if the other party changes their story multiple times after the accident.
    • Witnesses – If there are witnesses, ask for their information and if they are willing to speak to police and insurance companies if asked.  If the other party is protesting that they were at fault and they clearly were, you would surprised how many people will come to your aid.
    • Police – Yes, they should be called, but do not rely on their information to help at all when determining fault or assisting in recovery of damages.  I have had more than one occasion where the police were actually a hinderance to the insurance claim process.
    • Note: If you get a ticket for causing an accident than you may want to consider using a service like GetDismissed.com to help prevent it from adding a point to your license since any tickets won’t end up being covered by your insurance ocmpany.
    • Be nice and keep an open mind – Regardless of who was at fault, be nice.  Emotions will be high so it is best to bring calm to a situation that can be the exact opposite of calm.
    • Do not admit fault – Unless fault is obvious, do not admit fault.  You don’t have to blame the other person, but it isn’t necessary to fall on the sword either.
    • Notes or recording – Recording your thoughts soon after the accident will help you remember small details.  Things happen quickly.  Taking a few moments to replay what happened in your head soon after the accident is a very good idea.
  • If driving as a rideshare driver, provide the rideshare insurance as primary insurance, not your personal policy.  Rideshare insurance is primary insurance when you have an active ride request (or are en route to a rider) so be sure to use Uber’s, Lyft’s, etc. insurance.

In order to find your Uber proof of insurance, go to the waybill from the menu on the driver app and scroll down to the bottom of the waybill.  You will see Uber’s insurance information there and that is what you will provide to the other driver.

With that out of the way, you will now want to contact your rideshare company.  You can call Lyft’s emergency hotline (855-865-9553) but with Uber, you’ll have to e-mail your local Uber office.  They will assist you in starting the process of your claim with James River.

After the accident is reported, Uber or Lyft will most likely suspend your account until you can prove your car has no damage.  When you start a claim, you are letting them know that your car is damaged, so it makes sense.  In order to reactivate your account, you will need to provide proof that the damage is minimal enough as to not affect the customer experience or proof that repairs have been made.  For me, it was less than two hours from the time I provided proof via email until I was reactivated.

James River will then ask you to get an estimate of the damages.  James River will only become involved in the process if:

  • You are at fault or
  • The damage to your vehicle is higher than the deductible.

If the damage is lower than the deductible and the other person is at fault, then you are on your own to recover the damages.  From here, if James River is handling the claim, the process is simple as they handle everything.

Things become more difficult in situations where you are not at fault and damage is less than the deductible.  (The deductible for Uber is $1,000 and the deductible for Lyft is $2,500.)

Related Article: Lyft’s $2,500 Collision Deductible Explained

As a rideshare driver…

There is a lot to think about here, so here are a few things you should remember as a rideshare driver about preparing for the eventual accident.

  • Deductible – Have the amount of the Lyft or Uber deductible saved.  It is highly likely you will need this money in order to get back on the road quickly even if you aren’t at fault.  Lyft’s deductible is $2,500 which is admittedly high.  Uber’s is more reasonable at $1,000.
  • Down Time – An accident will take you off the road.  If the damage is so minor that it doesn’t affect your passengers experience, then you can be back on the road quickly.  If the damage is more severe, you could be off the road for weeks.  There are many variables involved with repairing vehicles including part availability.  Plan on 4 weeks and work with your repair shop to try and cut that time down.
  • Report the accident – The way to report the accident differs between the rideshare companies.  With Uber, you send an email.  They will then request you to fill out an incident report.  With Lyft, they ask you to call 855-865-9553.
  • Which insurance to report the accident to – What “period” you are in when the accident occurs affects who you report the accident to.  During period 1 (online without an active ride request), Uber and Lyft insurance is primary in some states and contingent in most others.  If insurance is contingent in your state, that means that it is secondary and will only cover you if your own insurance company doesn’t cover you.  During Period 1, if you are going to contact insurance at all, you need to contact your personal insurance company.  They will likely ask you if you are an Uber or Lyft driver (this is a standard insurance question now) and if you haven’t told your insurance company that you are a rideshare driver, you do run the risk of your claim being denied and/or dropped.  During periods 2 and 3 (active ride request with or without the passenger in the car), you should contact Uber or Lyft as they are the primary insurance at that time in all states.
  • Communicate with your personal insurance agent – Your personal insurance agent can be a great source of information.  While they won’t be the person to facilitate your claim, they will point you in the right direction and keep you on the right track.  We have created a list of good reliable insurance agents so this is a great place to start when looking for rideshare friendly policies.

Handling the claim without James River or your personal insurance company

The operative word is Diligence.  If you want to recover your damages, you need to stay on top of the other person’s insurance company.  Things that will help and things to watch out for are:

  • Witnesses – I cannot stress enough how much witnesses can help.  If it becomes your word against the other driver’s, it becomes more difficult.
  • Labor rate – This is a common way for insurance companies to low ball the claim amount.  Don’t let them do it unless you know your shop can do it for that amount anyway.  This can be a bit of a game since body shops know to price high in order to counteract the labor rate issue.  Yes, there are pricing standards, but….
  • Persistent – Call the other insurance company.  Be nice but force them to commit to a timeframe.  If the timeframe is too long, let them know that.  Follow-up with them when they miss deadlines and they will.
  • Don’t threaten – There are subtle ways to let them know this can be done the easy way or the hard way.  Express, after they have missed the third deadline, that you have been patient but they continue to say one thing and do another.  Ask them to confirm things that you both agree on.  They are not used to dealing with reasonable people.  This is one situation where honey will get you a lot further than vinegar.
  • Last resort – Of course if you can’t get them to make a payment, then you will need to seek representation.

Personal examples

I have learned how to handle accidents from the accidents my family has had.

  • My wife was in an accident many years ago where she was clearly not at fault.  It happened in a parking lot so the police did not write any tickets but took a police report.  The other party had friends on the police force so they went to the police station and modified the police report to make it look like my wife was at fault.  Thankfully, the story they concocted was so unbelievable that their own insurance company saw that it was a lie and paid us a higher amount so the claim would exceed a threshold where they could raise their rates.
  • I was in a three car accident about five years ago where I was rear-ended while sitting at a stop light.  It was a bad accident where the person in the third car went to the hospital.  The person in the second car which was the car that hit me changed her story three times while at the accident site.  She told the final version to the police officer.  The real story was that she hit me and then the final person rear ended her.  Her insurance company claimed the third car pushed her into me.  I knew this wasn’t true since I felt two impacts.  The case went to arbitration and the middle car was assigned responsibility for my damages which were over $4000.  My insurance company paid out for all damages minus the deductible right away but withheld the deductible amount ($500) until they received payment after the arbitration which was 9 months after the accident.

If you are still with me after this marathon article, you understand the importance of insurance and knowing what to do.  Please share any personal experiences or any questions you may have in the comments.

-Scott @ RSG

UPDATE: If you’re looking for a rideshare friendly policy, we’ve actually got a list of insurance options by state available here: http://therideshareguy.com/rideshare-insurance-options-for-drivers/

Make Every Mile Count

Loan your car insuranceDid you know that every 1,000 business miles can generate $535 in tax deductions? Never miss another mile with the new QuickBooks Self-Employed automatic mileage tracker.

More and more states/companies are adding options every day so make sure you bookmark that page and check back often as we are constantly updating it!

Share Pin Tweet Share EmailShares 391The following two tabs change content below.
  • Bio
  • Latest Posts
Online car insurance brokersLv car insurance phone number

Scott Van Maldegiam

I'm Scott, a full time health benefits consultant and rideshare driver. I spent 11 years working for Motorola and Tellabs using my EE degree and MBA before transitioning into the mortgage industry where I spent 6 years. I then spent 5 years in the cycling industry before transitioning into health insurance. Car insurance quotes progressive auto insuranceAig travel guard car insurance

Latest posts by Scott Van Maldegiam (see all)

  • Top 10 Rideshare Vehicles to Insure - October 21, 2016
  • How To Drive For Uber And Lyft At The Same Time - July 28, 2016
  • What Can Happen If You Don’t Have Rideshare Insurance? - June 15, 2016

Source


California Car Insurance

Are you shopping for affordable car insurance quotes? California insurance companies are required to offer you a good driver's discount if you have a clean driving record. Read more to learn about California car insurance rates, laws, and programs.

Car Insurance Requirements

California law requires that you have a way to cover costs related to damages or injuries you may have caused in a car accident. Purchasing liability car insurance is the simplest and most common way people choose to meet this requirement.

The minimum amount of liability insurance you must have on your policy is:

  • $15,000 for injury/death to one person.
  • $30,000 for injury/death to more than one person.
  • $5,000 for damage to property.

Other Car Insurance Coverage

While liability coverage is the only type of car insurance coverage you are required to carry in California, there are several other types of coverage available to you, including:

  • Comprehensive coverage – This coverage insures you against damages that might occur to your car that do not involve traffic accidents such as theft-related damage.
  • Collision coverage – This insures you against damages to your car that occur as a result of a traffic collision such as an accident with another driver.
  • Medical and funeral services coverage.
  • Uninsured/Underinsured motorist coverage – According to the latest statistics from the California Department of Insurance (CDI), in 2004, 14.43% of California drivers had no car insurance. Uninsured/underinsured coverage can cover damages caused by one of these drivers.
  • Rental car coverage.
  • Towing and labor coverage.

Note: Adding comprehensive and/or collision coverage is generally optional. However, if your car is being financed, your lending or leasing company will require you to purchase comprehensive and collision coverage.

Other Forms of Financial Responsibility

Buying car insurance is the most common way to fulfill your financial responsibility requirements, but it isn't your only option.

Other options to meet the requirement include:

  • A $35,000 cash deposit with the CA Department of Motor Vehicles.
  • A Certificate of Self-Insurance from the DMV.
  • A surety bond of $35,000 from any company licensed to do business in CA.

Proof of Insurance

You must be able to prove you have auto insurance to register your car or renew your registration. Your insurance company will give you an insurance card that can serve as your proof of insurance. Your car insurance card will have:

  • Your car's information.
    • Make.
    • Model.
    • Year.
    • Safety rating.
    • Value.
  • Your name and the name of any other drivers under your car's policy.
  • The expiration date of your insurance policy's term.

You will receive a new card every time you renew your car insurance policy.

Additionally, insurance companies in California are required to electronically report your insurance information to the DMV. The California DMV can use these electronic records to verify that you have car insurance.

Getting Pulled Over in California

If you are pulled over by a police officer, you must show your proof of insurance, along with your driver's license and car registration.

Violation Fines and Penalties

If you are pulled over in California without proof of car insurance or any other form of financial responsibility, you may face the following fines:

  • $100 - $200 for your first offense.
  • $200 - $500 for each offense within 3 years after your first.

The court may impound your car and hold it until you are able to show a proof of insurance.

Suspended Registration

Not having car insurance in California can also result in a suspension of your car's registration if:

  • The CA DMV is notified of your insurance cancellation and you have not replaced it within 45 days.
  • Your car insurance information is not given to the DMV within 30 days of your car's initial registration or transfer of ownership.
  • You registered your car with false evidence of insurance.

The DMV will send you a letter if your registration has been suspended due to not having car insurance. You can re-register your car with a proof of insurance at the cost of $14. You can apply for reinstatement:

  • Online at the DMV's Vehicle Registration Suspensions Insurance Program page.
  • By mail with your notification letter to: DMV PO Box 997405 Sacramento, CA 95899
  • By mail without a notification letter to: DMV VRFRP Unit PO Box 997408 N305 Sacramento, CA 95899-7408
  • By phone at (800) 777-0133.

California's Proposition 103

Before 1988, California was among only a small handful of states that had no state-governed regulations on the insurance industry. As a result, California auto insurance rates kept climbing to levels that were not affordable to many people.

To combat what many saw as arbitrary insurance rates, Californians voted into law Prop 103 on November 8, 1988, which called for consumer-driven regulation on insurance companies.

Under Prop 103, insurance companies were required to cut their rates to 20% less than what they were in 1987. Any rate changes from that point would have to be approved by the California Department of Insurance.

Among the provisions of Prop 103 are rules regulating how insurance companies determine your car insurance premiums and the Good Driver Discount policy.

Good Driver Discount Policy

Because of Prop 103, California law requires insurance companies to offer a 20% discount to good drivers. You qualify for this Good Driver Discount policy in California if:

  • You have been licensed to drive for the past 3 years.
  • During the past 3 years you have not:
    • Had more than 1 point on your driving record due to a violation(s).
    • Taken traffic school because of a traffic violation more than once.
    • Been the at-fault driver in an accident that resulted in injury or death.

Determining Your Insurance Premium: Credit Score

Prop 103 makes it illegal for insurance companies in California to use your credit history as a factor in determining the cost of your car insurance premium. Because of this, other factors may carry more weight.

These factors may include:

  • Your driving record.
  • Your age.
  • Where you live.
  • The make/model of your car.
  • The purpose of your car (e.g., commuting or personal use).

California's Low Cost Auto Insurance Program

The Low Cost Automobile Insurance Program (CLCA) was established in California in 1999 to give income eligible drivers a way to get car insurance at an affordable price in order to combat the high number of low-income drivers without car insurance.

To qualify for the CLCA you must:

  • Have a valid California driver's license.
  • Own a car with a value of $25,000 or less.
  • Be at least 19 years old.
  • Meet the income requirements

California's Automobile Claims Mediation Program

If you have a dispute over a claim with your insurance carrier, you may be able to take advantage of California's Auto Claims Mediation Program, which provides a way to help settle claim disputes with the assistance of a third-party mediator at no cost to you.

You may be eligible for the program if the dispute with your insurance provider involves:

  • The extent or amounts of damages.
  • Methods of repair.
  • Cause of damage.
  • Prior damage vs. recent damage.
  • Total loss.
    • This is when an insurance company declares your car not repairable and reimburses you the estimated value of the car instead of repairing the car.
  • Value of a total loss.

You are not eligible for the mediation program if the dispute involves the following issues:

  • Coverage issues.
  • Legal interpretations of your policy.
  • Statute of limitations and contractual limitations on claim filing periods.
  • Agent or broker actions.

For more information about CA's Auto Claims Mediation process, visit the CA Department of Insurance website.

Automobile Assigned Risk Plan

The California Automobile Assigned Risk Plan (CAARP) is a program to help get all drivers properly insured. If you cannot find a car insurance company, due to a poor driving record, you can apply for liability insurance through CAARP.

All California car insurance companies must accept a certain amount of CAARP applicants depending on their share of the market. The higher the amount of standard customers they have, the higher amount of CAARP applicants they must take.

Once you have a clean driving record for a consecutive 3 years, you can purchase your car insurance outside of CAARP.

California at a Glance

Electronic Insurance Cards

California's Vehicle Code states that if you do not have your car insurance card, you may be able to pull up your insurance information on your smartphone. Several car insurance carriers have smartphone apps that allow you to access an electronic insurance card.

Car Theft In California

California is the car theft capital of America. In 2011, according to a report issued by the California Highway patrol, 156,796 vehicles were stolen, at an estimated cost of one billion dollars.

Car Theft and Your Car insurance Rates

When calculating a policyholder's insurance rate, many car insurance companies consider the risk of car theft in a given area. Since car theft rates in California are high, you pay a higher rate.

California car theft hurts everyone that has car insurance. By educating yourself about the types of cars and trucks that are stolen and learning simple ways to prevent your car from being stolen, you're taking positive steps toward keeping car insurance rates low for everyone.

Most Stolen Cars in California

Driving a car that is often targeted for theft may increase your car insurance rates.

The following is a list of the most commonly stolen cars in California for 2013 according to www.nicb.org:

  1. Honda Accord.
  2. Honda Civic.
  3. Chevrolet Pickup (Full Size).
  4. Toyota Camry.
  5. Acura Integra.
  6. Ford Pickup (Full Size).
  7. Toyota Corolla.
  8. Nissan Sentra.
  9. Nissan Altima.
  10. Toyota Pickup.

Reporting Accidents

According to the California DMV, every driver will be involved in a car accident at least once in their life, so you should be aware of how to handle such an incident.

When involved in an accident:

  • Try your best to pull out of traffic and onto a safe spot at the side of the road.
  • Never flee the scene. You may risk a hit-and-run conviction.
  • Check for any injuries to anyone involved.
  • Report the accident immediately if anyone is injured or killed.
  • Exchange car insurance information with other drivers involved in the accident.

If you are in an accident that causes more than $1,000 in damages, you must report the accident within 10 days by completing a Traffic Accident Report (Form SR 1).

Cell Phone Use

The CA DMV states that about 10% of drivers use their cell phones while driving.

Even with hands-free devices, studies have shown that cell phone usage is highly distracting.

For safety measures, the state of California has made it illegal to text or use hand-held cell phones while driving. If you are over 18 years old, you may use a hands-free device to make phone calls.

If you must make a call while driving, follow these tips to help you stay safe:

  • Try to pull off the road when possible.
  • Do not get involved in emotionally heated discussions.

California law states if you are under 18 years old, you are NOT allowed to use a cell phone for any reason while driving, including texting and making calls this includes a hands free device.

Remember, all violations can affect your car insurance premiums. Stay safe and keep your car insurance rates low.

Source

Add comment

This e-mail already registered. or enter another.

Error

Sorry.
↑↑↑↑↑↑↑