Consumer Resources for CA Auto Insurance
Insurance News
Welcome California consumers. We understand the concerns that you have
trying to get insurance when you have had a few tickets or accidents
or even some credit problems that may put you and your family in need
of a State Mandated Insurance Plan to secure insurance coverage
This website will help you locate the appropriate insurance that you need regardless of what insurance record you have had. California Certified Producer Agents are available to help you.
CAARP-ARAIP-PAIP-CAIP-AIP Assigned Risk or High Risk automobile residual insurance markets consists of licensed drivers unable to purchase automobile insurance through the Voluntary Market due to a variety of factors, such as their driving history, accident history or status as a first-time driver. The CA Auto Insurance Assigned Risk or CA High Risk Automobile Insurance often charges higher rates in your state, and is a last resort for licensed drivers that cannot obtain Auto Insurance coverage elsewhere in the California preferred or normal and open marketplace.
SUMMARY
SB 858 would require the California Automobile Assigned Risk Plan (CAARP) to
provide agents and insurers, upon request, with confidential policyholder information
for the
purpose of allowing the requesters to offer CAARP policyholders competing auto
insurance coverage.
What is the difference?
CAARP Existing law
1. Requires the Insurance Commissioner to approve an "assigned risk" plan for
automobile insurance, known as CAARP (California Automobile Assigned Risk
Plan). Drivers who are unable to obtain insurance coverage from the voluntary
market are "assigned" by CAARP to specific insurance companies on a fair
share basis.
2. The Insurance Information and Privacy Protection Act requires insurers, agents
and insurance-support organizations to protect the confidentiality of policyholder
information. According to the Department of Insurance (DOI), information submitted
to CAARP is
covered by this Act.
3. The Information Practices Act, and other state laws, generally require the
DOI and other state agencies to protect the confidentiality of information provided
to the government. In addition, the provisions of CAARP state that specified
information provided by the Plan
to DOI regarding applicants shall be kept confidential by DOI.
What is proposed and what will it change?
This bill
1. Includes legislative intent to require CAARP to make available to insurers,
agents and brokers, on request, information about CAARP policyholders in order
to allow these insurers, agents and brokers to offer CAARP policyholders insurance
coverage through a source other than CAARP.
2. Would require CAARP to provide policyholder information in both paper and
electronic form upon payment of a fee covering the cost of producing the information.
The requester shall have the option of receiving information on a statewide
basis or by geographic region. The information shall include all of the following:
"(1)The name and address of each named insured who applied for a plan policy
within the previous 12-month period.
"(2)For each vehicle insured by the policy, the description, vehicle identification
number, and
garaging address.
"(3) For each driver listed on the policy, the name, age, gender, marital status,
and driver's license number, and whether the driver is required to file proof
of insurance with the Department of Motor Vehicles pursuant to Division 7 (commencing
with Section 16000) of the Vehicle Code.
"(4)Coverages and limits requested."
3. Would require that this confidential information could only be used for the
purpose of offering auto insurance, excluding CAARP coverage. Any requester
must agree to indemnify CAARP with respect to any liability related to the use
of the information.
4. States that the insurance-related information provided under this bill is
subject to the restrictions set forth in the Insurance Information and Privacy
Protection Act.
Why would my California auto insurer cancel my policy?
Technically, in most states your insurer may cancel your policy only if:
you fail to pay your premium;
you lose your driver's license;
you are guilty of material misrepresentation during the application process
i.e., you fail to notify your insurer of a recorded violation, such as a drunken
driving, or possession of drugs or any illegal activity offense; or
you fail to report a substantial change of risk, such as buying a new high performance
sports car to replace an old high mileage family sedan.
However, your current insurance company may legally choose not to renew your policy for a variety of reasons.
Do you have a bad driving record? Have you received a lot of speeding tickets?
Have you ever been caught driving drunk? Not only are these scenarios considered
unsafe and illegal, they are justifiable cause for your insurer to label you
a bad risk and refuse to renew your policy. Some underwriters may feel compelled
to cancel policies after only one accident.
Where do you park your vehicle when not in use? Has the area changed in a negative way in the last few years? Have
the accident or crime rates risen noticeably? As regions are reassessed periodically,
their status could change and you could suddenly find yourself living in a higher
risk area, where your insurer's rates may not be adequate to cover losses.
What do I do if my California Insurance Company cancels or refuses to renew
my policy?
Even "good" drivers can find themselves in the position of being dropped by
their current carrier. Reasons range from a couple of moving violations, or
multiple accidents, or other serious violations that make you a high risk to
situations outside your control, such as when insurers in your state are suffering
severe business losses. Overall rises in claims or losses can cause insurers
to become highly selective in determining whom they can afford to offer to insure.
That is why it is important to note that if you are licensed to drive, by law,
you are eligible for insurance. However, your options for new coverage may be
limited. Each state has created and regulates a market of last resort for those
who cannot otherwise obtain coverage. These groups have various names, depending
on the state you live in, such as assigned risk automobile insurance plans or
the residual market, or the high risk pool. Your agent or insurance producer
will know more about the particulars in your state.
Regardless of the reason you were dropped or canceled by your insurer, you need
to act immediately to get another policy. Under no circumstance should you drive
your vehicle without knowing one hundred percent that you have current insurance.
Call your local agent to help you find new coverage. If you do find yourself
in the assigned risk residual market pool, the price may be higher but it may
be your only alternative in maintaining your freedom to drive.
How do I keep my insurance company from canceling my policy?
The most obvious way to maintain your low risk status is to keep a clean California
DMV driving record. If you've been in an accident, consider taking a defensive
driving course. Even those of us who have been driving for years rarely know
the simple tricks to preventing accidents through defensive driving.
Also, look into purchasing special safety and security features for your car,
such as anti-lock brakes and an alarm system, or try OnStar. Your CAARP insurance
agent can give you further tips on how to convince your insurer you're a safe
driver.
What steps can I take to reduce my CA Auto Insurance rates?
California Insurers often discount their rates in order to encourage good driving
practices and the use of safety and security precautions. Depending on the insurance
company, you can often lower your rates from 5 to 55 percent.
Sometimes the investment you make in your vehicle is worth the discount, and
sometimes it's simply worth some peace of mind. For example, the purchase of
anti-lock brakes merits a discount from nearly every insurer, but the discount
probably will not pay for the brakes which cost several hundred dollars during
the normal life of your vehicle. Anti-lock brakes are touted, nonetheless, as
a life-saving feature and deserves serious consideration when safety is a top
priority. Insurers generally offer discounts for:
Safety Features Anti-lock brakes, air bags and passive restraint systems i.e.,
automatic seat belts.
Defensive Driving Clean violation record, driver's education courses for teenagers
and defensive driving or accident prevention courses for adults insurance discounts
for the latter are required in some states.
Security Systems Alarms, electronic locks, VIN etching and automotive disabling
devices.
Changing The Driving Habits Try commuting by public transit, using a company
vehicle for work-related travel and car-pooling.
Formal Agreements Not to Drink and Drive The availability of a discount for
signing such an agreement varies among insurers and states, however is a powerful
idea that works.
Buying Home Owners and Auto Policies from the Same Company If you own a home
and an automobile and you are insured by two different companies, check into
the cost of carrying both policies by one insurer. Your agent can give you guidance
as to which insurers offer discounts. This will always offer your the best buy,
so put it in your corner when shopping for rates
You can also lower your insurance rates by requesting higher deductibles, which
is the amount of money you pay out of pocket before you make a claim. Increasing
your deductibles on collision and comprehensive coverage from $100 to $250,
or even $500, will bring your rates down. Moreover, you may not need collision
and comprehensive coverage if you drive an older car. Ask your agent which discounts
are available to you.
Finding the best coverage and lowest prices for Automobile insurance is not
that difficult to shop for. Rates vary widely from company to company. To help
make shopping, comparing rates and saving money on your insurance easier, Assigned
Risk Auto Organization provides free auto insurance comparison rates 24 hours
a day, seven days a week. Get competitive non biased help with Receive a quote
from our consumer comparison rating service any time day or night, over the
Internet. Spend a couple of minutes answering a few questions about yourself,
your driving record, vehicle information and insurance needs. Local Assigned
Risk Insurance Agents will tell you how much their company would charge you
for an annual premium for your automobile insurance, in addition to rate comparisons
from other major auto insurers including most household name brand insurance
companies in your specific zip code.
Getting yourself out of the high or assigned risk driver pool category is going
to take a little time. You may need to consider the following, cleaning up a
bad driving record and paying your bills on time. And some factors will fade
with time. Most insurance companies rate a driver with no points for three years
as a good or preferred risk. But there are a few things you can do to cut high
risk auto insurance costs now! Consider driving an older car and dropping collision
and comprehensive coverages. Or, if you can accept the risk, carry lower amounts
of other standard coverages.
And don't forget that shopping online is a great way to access assigned risk
automobile insurance PAIP certified producers and companies that serve Local
Consumers in our area. You may even be able to comparison shop between several
offers. If you get a FREE QUOTE from each of the national quoting services you
will have the best service from someone Local in your area.
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CARRIER, HOWEVER IN SOME STATES WE ACT AS AN AGENT OR BROKER. AssignedRiskInsurance.Com
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OF APPROPRIATE LOCAL INSURANCE COVERAGE FROM LICENSED PRODUCERS IN YOUR AREA.
YOUR PRIVATE INFORMATION REMAINS BETWEEN YOU AND THAT AGENT OR PRODUCER. WE
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AND COMMERCIAL Insurance Plans-PAIP-CAIP-Limited Assignment Distribution (LAD)
servicing people seeking High Risk insurance
Quotes in all 50 States.