Auto Insurance Requirements in Alaska

Auto Insurance Requirements in Alaska

Though there are Federal laws that govern certain activities at a national level, the majority of traffic and insurance legislation is decided at state level. Here is some information about Insurance requirements for the state of Alaska, as well as some statistics and a few interesting traffic facts.

Insurance Requirements for Alaska

Alaska Statute AS 28.22.101 covers mandatory insurance and registration requirements for the state. This is the minimum, mandatory liability coverage under that statute for all registered vehicle owners:

• $50,000/$100,000 bodily injury or death coverage
• $25,000 property damage coverage
• An SR 22 for registered vehicle owners with suspended operators' licenses

Failure to meet the minimum requirements will result in license suspension.Owners must also carry proof of insurance in the vehicle at all times, under penalty of impoundment. Persons with six points or more on their license in a five-year period must carry minimum liability coverage even in exempt areas. According to Alaska Statute AS 28.22.011(1)(A) & (B), these areas are exempt from the mandatory insurance and registration legislation.

Insurance Fraud in Alaska

Insurance fraud is a serious problem, causing insurance premiums costing consumers an estimated 13 - 18 percent increase in their auto insurance premiums per year. In the state of Alaska, insurance fraud is a criminal act underAlaska Statute § 21.36.360, ranging from a Class A misdemeanor to a Class B felony, depending on the severity of the crime. One is guilty of insurance fraud under this statute if they:

• Collect an unprovided charge or premium
• Knowingly provides false oral or written statement to an insurance underwriter
• Conspires or colludes with another person or persons to make such provide such statements
• Intentionally accepts excess premiums or charges
• Misappropriates or illegally holds premiums
• Fails to pay title tax when due

Alcohol-related Accidents Statistics for Alaska

Alcohol is a major factor in many traffic accidents, often with deadly consequences. In the state of Alaska, alcohol was a factor in one third of all highway fatalities. The good news is that this shows a decrease in alcohol-related traffic fatalities overall. A National Highway Traffic Safety Administration study that was conducted over a 16-year period found that of the traffic fatalities on Alaska's roads, 52.6 percent were alcohol-related; the good news is that number is decreasing and now stands 31 percent.

Only in Alaska

Every state has it's own legal peculiarities. Some of these laws are just common sense and some make one wonder why it was necessary to write such legislation. In the state of Alaska, it is illegal for one to tether their dog to the roof of their car or to luggage racks affixed to the roof of the car. Violators face fines and possible jail time.

Continue Reading…

Alabama Auto Insurance

As an industry-leading provider of Alabama auto insurance, we know what you're looking for in a policy: excellent value and service that leaves you smiling. This is what we endeavor to offer to every customer.

State Requirements

• You’ll need basic liability coverage, which consists of bodily injury liability coverage of $25,000 or more per person and $50,000 per incident, and property damage liability coverage of at least $25,000 per person.

Our wide range of coverage options is designed to offer customers the flexibility to choose the right plan for their needs, including the following coverage types:

Basic Liability Coverage
Alabama requires basic liability coverage to legally drive in this state. This basic policy will cover the other party's medical bills and repair costs if you are at fault for an accident. Alabama requires.  You may want to consider additional coverage above the required amount though, since accidents can cost a lot more. 

Comprehensive and Collision Coverage

A basic liability policy only covers the medical bills and repair costs for the other party following an accident, so it's a good idea to add comprehensive and collision coverage. This ensures that your vehicle repairs and rental car costs are covered after an accident, and with comprehensive coverage, you'll even be taken care of in the case of fire, theft, windshield damage or vandalism. If you're concerned about the monthly payments, Acceptance has you covered. You can simply choose a higher deducible to make your payments go down. 

Uninsured Motorist Coverage

Many states require uninsured motorist coverage. Alabama does not require this type of coverage, although it's common to have about $25,000 per person or $50,000 per accident.  This is a good type of coverage to have regardless of whether it's required, since so many people drive without insurance or with only the bare minimum coverage.If you want to make sure you're covered after an accident, regardless of the other driver's insurance status, be sure to add this to your Alabama auto insurance policy.

You. Your Terms. Accepted.

Types of Car Insurance We Offer:

• High Risk Auto Insurance
• SR 22 Auto Insurance
• Non Owner Auto Insurance
• Liability Auto Insurance
• Teenager Auto Insurance
• Bad Credit Auto Insurance
• Senior Auto Insurance
• Non Standard Auto Insurance

State By State:

• Alabama
• Florida
• Georgia
• Illinois
• Indiana
• Mississippi
• Missouri
• Ohio
• Pennsylvania
• South Carolina
• Tennessee
• Texas
• Virginia

Continue Reading…

CALIFORNIA CAR INSURANCE

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 the DMV's Vehicle Registration Suspensions Insurance Programpage.
• 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 

You can visit the CLCA website and take their questionnaire to see if you qualify. 

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. Totoyta 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 $750 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.

Continue Reading…

LOS ANGELS CAR INSURANCE

Los Angeles, California Minimum Insurance Requirements

Every state's minimum insurance coverage levels are slightly different, but all of them include these three basics components:

• Individual Bodily Injury Liability (BIL):
  This is the maximum amount that your insurance company will pay for an individual person injured in a car accident. National minimums range from $10,000 to $50,000. California's BIL minimum is $15,000.
• Total Bodily Injury Liability:
  This is the maximum amount that your insurance company will pay in total for every person injured in a car accident. National minimums range from $20,000 to $100,000. California's total BIL minimum is $30,000.
• Property Damage Liability (PDL):
  This is the maximum amount that your insurance company will pay for property damage caused by a car accident. This includes all physical damage such as vehicle damage, damage to road signs and telephone poles, and any other non-medical expenses caused by a car accident. National minimums range from $5,000 to $25,000. California's PDL minimum is $15,000.

Even though the minimum insurance requirements in Los Angeles, California are 15/30/5, it's important to consider purchasing more than the bare minimum. With so many cars on the road worth $50,000 or more, it doesn't take much for a car accident to produce tens of thousands of dollars in damage. The same goes for Bodily Injury Liability requirements.

It's definitely worth paying a few dollars more for higher coverage levels. Otherwise, you take the risk of finding out after an accident that you don't have enough insurance. Often, it doesn't cost much to bump state minimum levels up to a safer level like 100/200/100.

The Top 5 Car Insurance Companies in California

(Ranked by Direct Premiums Written in 2012)

1. Zurich (Farmers)
2. State Farm
3. Liberty Mutual
4. Allstate
5. Travelers

More Statistics on Los Angeles California

California Insurance Facts
Gas Tax (cents)		Insurance Minimums (dollars)			Average Cost
Gasoline	Diesel	BIL	BIL (total)	PDL	Los Angeles	National
71.3	74	15,000	30,000	5,000	$2,307	$797

Continue Reading…

VEHICLE INSURANCE

Vehicle insurance, in the United States and elsewhere, is designed to cover risk of financial liability or the loss of a motor vehicle the owner may face if their vehicle is involved in a collision resulting in property or physical damages. Some states require a motor vehicle owner to carry some minimum level of liability insurance. States that do not require the vehicle owner to carry car insurance include Virginia, where an uninsured motor vehicle fee may be paid to the state; New Hampshire, and Mississippi which offers vehicle owners the option to post cash bonds . The privileges and immunities clause of Article IV of the U.S. Constitution protects the rights of citizens in each respective state when traveling to another. A motor vehicle owner typically pays insurers a monthly fee, often called an insurance premium. The insurance premium a motor vehicle owner pays is usually determined by a variety of factors including the type of covered vehicle, the age and gender of any covered drivers, their driving history, and the location where the vehicle is primarily driven and stored. Most insurance companies offer premium discounts based on these factors.

Insurance companies provide a motor vehicle owner with an insurance card for the particular coverage term which is to be kept in the vehicle in the event of a traffic collision as proof of insurance. Recently, states have started passing laws that electronic versions of proof of insurance can now be accepted by the authorities.

Consumers may be protected by different levels of coverage depending on which insurance policy they purchase. Some states require drivers to carry at least liability insurancecoverage to ensure that their drivers can cover the cost of damage to other people or property in the event of an accident. Some states, such as Wisconsin, have more flexible "proof of financial responsibility" requirements.^[1]

In the United States, automotive liability insurance covers claims against the policy holder and usually any other operator of an insured vehicle; provided they do not live at the same address as the policy holder and are not specifically excluded on the policy. Drivers living at the same address must specifically be covered on the policy. Thus it is necessary, for example, when a young adult reaches driving age that they be added to the policy. Liability insurance sometimes does not protect the policy holder if they operate any vehicles other than their own. When you drive another person's car you are not necessarily covered under their policy. Non-owners policies are also available. These policies insure drivers on any vehicle they drive, even if it belongs to someone else. This coverage is available only to those who do not own their own vehicle and is sometimes required by the government for drivers who have previously been found at fault in an accident. Non-owners policies are also known as Named Operator Policies. The policies are useful for people whose driver's license has been suspended and they have to have insurance for their license to be reinstated.

Liability coverage is offered for bodily injury (BI) or property damage (PD) for which the insured driver is deemed responsible. The amount of coverage provided (a fixed dollar amount) will vary from jurisdiction to jurisdiction. Whatever the minimum, the insured can usually increase the coverage (prior to a loss) for an additional charge.

An example of property damage is where an insured driver (or 1st party) drives into a telephone pole and damages the pole; liability coverage pays for the damage to the pole. In this example, the drivers insured may also become liable for other expenses related to damaging the telephone pole, such as loss of service claims (by the telephone company), depending on the jurisdiction. An example of bodily injury is where an insured driver causes bodily harm to a third party and the insured driver is deemed responsible for the injuries. However, in some jurisdictions, the third party would first exhaust coverage for accident benefits through their own insurer (assuming they have one) and/or would have to meet a legal definition of severe impairment to have the right to claim (or sue) under the insured driver's (or first party's) policy. If the third party sues the insured driver, liability coverage also covers court costs and damages that the insured driver may be deemed responsible for.

In some states, such as New Jersey, it is illegal to operate (or knowingly allow another to operate) a motor vehicle that does not have liability insurance coverage. If an accident occurs in a state that requires liability coverage, both parties are usually required to bring and/or submit copies of insurance cards to court as proof of liability coverage.

In some jurisdictions: Liability coverage is available either as a combined single limit policy, or as a split limit policy

Continue Reading…