Or Quick Quote

California Auto Insurance Information

BIPD or Bodily Injury and Property Damage

Commonly referred to as Liability Insurance for your automobile, this coverage is paid out in the event of an At-Fault Accident. This covers damage sustained to other drivers and the property owned by others up to the specified limit on the insurance policy.

UM / UIM - Uninsured and Underinsured Motorist

This coverage pays occupants of your vehicle in the event you are involved in an accident with another person and it isnt your fault, however they failed to carry minimum Liability BIPD coverage or none at all. This coverage will also take over in the event that damages exceed the limits the other driver has on their policy.

Comprehensive Coverage

The Comprehensive or Comp Deductible covers your vehicle in the case of losses classified as other than collision. Meaning that it covers pretty much everything else that may happen to your car except for cases where you are involved in an accident or collision that is your fault.

Collision Coverage

Collision coverage covers your vehicle in the event of an At-Fault loss by a driver of your car. Collision is generally defined as a crash involving another vehicle or object and roll-over or upset of the vehicle. Collision claims are generally counted against the driver of the automobile at the time of the collision. When you get an Auto Quote from Get Covered USA, you should indicate if you have had this type of loss for the most accurate quote possible. Many companies will not accept a driver with certain incidents on their driving record or some will accept them but charge an inflated rated because of the accident. There is a different appetite for each company when it comes to the type of driver presented as an insured. Some dont rate as harshly as others for at-fault accidents while others will.

Towing

Towing or Roadside Assistance coverage is an endorsement on your auto policy that will allow your car to be towed at no cost or at a pre-specified covered amount on your policy. The coverage also often allows for roadside assistance in the event of key lockout, or run out of gas type of situations as well. Towing coverage often is very inexpensive. Some companies require that you have Physical Damage (comp + collision) coverage on the car to obtain towing coverage.

Glass Waiver of Deductible

Glass Waiver of Deductible or Glass Buyback coverage is specifically for coverage on your windshield or other auto windows. Glass breakage is perhaps the most common claim made overall for automobiles. Insurance companies will offer to you at additional cost, the option of having a $0 deductible to replace glass in your auto. This coverage is tied to your Comprehensive deductible, so you must have that in order to benefit from the glass coverage endorsement.

Medical or Medpay

Medical Coverage on your Auto Policy is a First Pay coverage. We at Get Covered USA highly recommend this coverage because of this. For example, you are involved in an accident (regardless of fault) and you are injured and taken to a hospital. You will immediately begin to accumulate medical bills. If you have medpay coverage then the insurance company will pay these as they become due. The alternatives are for your health insurance to cover the bills, which many treatments may be declined or if you dont have any health coverage at all you will be responsible for everything out of pocket. BIPD, UM and UIM will cover your medical damages, however these coverages do not kick in until all treatments have been completed! Medpay coverage might be available under a Liability Only type policy!

DMV Ready To Enforce Provisions of Mandatory Insurance Law

SACRAMENTO—Californians who operate their vehicles without auto insurance could have their vehicle registrations suspended effective October 1 as part of SB 1500, designed to reduce the risk of economic losses sustained as the result of collisions involving uninsured motorists.

The legislation, signed in 2004 by Governor Arnold Schwarzenegger requires the Department of Motor Vehicles (DMV) to notify a customer about possible vehicle registration suspension if their insurance company fails to provide proof of insurance within 30 days of a vehicle’s initial registration with the department, or within 45 days once DMV has been notified by an insurance carrier about a policy cancellation or change in coverage.

“This new law is intended to protect Californians by reducing the number of uninsured vehicles on our roads,” said Sunne Wright McPeak, Secretary of the Business, Transportation and Housing Agency during a 10 a.m. news conference today at the DMV South Sacramento Field Office. “Each year thousands of collisions occur involving uninsured vehicle owners.” Secretary McPeak was joined by State Senator Jackie Speier, who authored the law, and George Valverde, Director of the state Department of Motor Vehicles.

“SB 1500 requires insurers to electronically transmit insurance verifications to the DMV and it directs the DMV to notify a vehicle owner if the vehicle is not insured,” said Director Valverde. “Beginning October 1, we’ll be in a position to identify vehicles that are uninsured and begin the process of notifying motorists of the need to get their vehicle insured.”

The initial provision of SB 1500, which took effect Jan. 1, 2006, requires that insurance companies doing business in California electronically report all private-use vehicle (except trailers, off-highway vehicles or boats) liability policies to DMV, both when a policy is issued and/or cancelled.

Since July 1, 2006, law enforcement agencies have been able to electronically verify if any private-use vehicle is properly insured by accessing the department’s vehicle registration database. DMV statistics show that there are more than 23 million licensed drivers in California who operate almost 30 million vehicles.

DMV statistics show that 1.4 million drivers have been convicted since 2001 for driving without proper insurance coverage, and 78,000 drivers were convicted for failing to have liability insurance when involved in a collision.

Senator Speier acted on complaints that the California mandatory financial responsibility law was weakened by a loophole that allowed individuals to register vehicles while insurance was in effect and then let the coverage lapse; DMV had no way to continuously monitor customer insurance status.

“The law makes a great deal of sense for California vehicle owners and consumers as well as law enforcement. In addition to the obvious taxpayer savings, we also expect it to result in lower vehicle insurance premiums,” Senator Speier said.

Director Valverde emphasized that vehicle owners whose insurance carrier is electronically connected to the department database do not have to provide paper proof of insurance when renewing their registration, because the DMV already has the information. “That’s why electronic reporting is so useful,” he said. “It saves DMV and California taxpayers money and all of the extra problems that comes with an employee having to personally examine paper documentation.” Valverde added that there are some exceptions to the electronic insurance verification process, and urged customers who might be affected to check the information available on DMV’s website by logging on to www.dmv.ca.gov.

As of Oct. 1, 2006, the toll free number customers must call to reach a member of the Vehicle Registration Financial Responsibility Program is 1-866-664-4545. Once a vehicle registration has been suspended, customers must submit evidence of a valid vehicle insurance policy and pay a $14 reinstatement fee before a registration can be reinstated or renewed.

Additional Points of Interest for California Insurance

• The Minimum Liability amount you must carry according to California State Law is 15/30/5 BIPD

• The California Department of Motor Vehicles or CA MVD also requires that you carry insurance on the vehicle to avoid suspension in registration. If your registration is suspended you might have to carry an SR22 for up to 3 years.

• DUI's also create a need for the insured driver to carry an SR22

• California is a No Fault Insurance State

• California has one of the highest auto theft rates in the nation. Due to its proximity to the United States/Mexico Border, many vehicles are stolen and transported into Mexico to be stripped for parts or sold whole.

• The top insurance carriers in California by policy count are State Farm, Allstate, Farmers Insurance

• Flood Insurance is sometimes needed in California but the need for Earthquake Insurance is very high.

• The State of California restricts Insurance Carriers from using a Credit Score related model to determine insurance rates.

• If you own a home or have a significant amount of money saved, you should consider carrying higher limits of liability or BIPD coverage as well as increased Personal Liability Coverage on your home. An Umbrella policy will pick up excess liability coverage above 250/500/100 limits on auto and 500,000 on home. Ask your insurance agent to give you more information on Umbrella Policies!

• Many people pay their Homeowners Insurance Premium out of Escrow, others prefer to pay it directly to the company themselves.

• Using an EFT or Electronic Funds Transfer Method will give you a discount off of your insurance rate with most insurance companies. It might not be reflected in your Auto or Home Insurance quote so make sure you ask about it if you are ok with this payment method.

California Insurance Law

• page 1
• page 2
• page 3