Consumer Resources for CA Car Insurance
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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.
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Auto insurance high risk selection is the process by which vehicle insurers determine whether or not to insure an individual and what insurance premium to charge. Depending on the jurisdiction, the insurance premium can be either mandated by the government or determined by the insurance company in accordance to a framework of regulations set by the government. Often, the insurer will have more freedom to set the price on physical damage coverages than on mandatory liability coverages.
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 California car 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 Car 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, the assigned risk insurance website 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.
Disclaimer & Legal Information WE ARE NOT ACTING AS AN INSURANCE CARRIER,
HOWEVER IN SOME STATES WE ACT AS AN AGENT OR BROKER.
AssignedRiskInsurance.Com FREE CONSUMER RESOURCES TO ASSIST IN THE PRICING,
QUALIFICATIONS AND PURCHASE OF APPROPRIATE LOCAL INSURANCE COVERAGE FROM
LICENSED PRODUCERS IN YOUR AREA. YOUR PRIVATE INFORMATION REMAINS BETWEEN
YOU AND THAT AGENT OR PRODUe
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