A DUI comes with many costs, concerns, and consequences – among them is what will happen to your car insurance. It’s not definite, but there is a very strong chance that your insurance company will raise your premium, and there are some points in the process that you should be aware of.

Firstly, it’s worth mentioning that under California law, you are under no obligation to report a DUI to your insurance company. On the one hand, this grants you a great benefit – you may be able to get your DUI charge reduced or dismissed in court, causing your insurance company to review your policy more leniently when it comes time to renew. On the other hand, there is still a very good chance your company will find out about the DUI if you are convicted.

An insurance company generally only reviews your driving record when you renew your policy, or start a new one. A DUI, or failure to appear in court for a DUI, will stay on your record for 10 years; your insurance company will find out sooner or later. It will be sooner if the DMV requires an SR 22 from you.

When you receive a DUI, the state of California revokes your driving privileges. In order to reinstate them, you must present an SR 22 to the DMV. An SR 22 is a certificate that confirms you meet California’s minimum requirements for auto insurance liability coverage. The only way to get an SR 22 is through your insurance company, who will learn about your DUI through issuing your SR 22.

The good news is California law prevents insurance companies from adjusting or cancelling your policy midterm. You can use this leeway to prepare for the likelihood that your premiums will increase when it comes time to renew your auto insurance.  However, if your license cannot be reinstated with an SR 22 your company may cancel you based on your license status.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.

Auto insurance is the only insurance required by law in the United States. However, each state sets its own rules for minimum coverage and penalties for coverage lapses.

California uses what is popularly known as the “15/30/5 rule” for minimum auto insurance coverage. These numbers mean that at all times you must carry $15,000 of coverage for bodily injury/death for an individual, $30,000 for the injury/death of more than one person, and $5,000 coverage for property damage. In addition to minimum coverage, California also has several auto insurance regulations that you must adhere to.

For example, your vehicle must always carry proof of minimum coverage. If you are pulled over on the road and cannot produce documentation that your vehicle is insured by at least the minimum coverage as outlined by the state of California, a number of penalties may ensue, including a $500 fine, court expenses, and vehicle impounding.

Of course, there are certain periods where you will be unable to produce proof of coverage and there are grace periods to allow for this. When you first register your vehicle with the state of California, you are granted 30 days before you need to provide the state with your insurance information. If you cancel or change your current insurance policy, you are granted 45 days before you need to obtain and submit information for replacement insurance. If you pass these deadlines without obtaining auto insurance, your vehicle registration may be revoked and you may incur additional fines. It’s also important to note that insurance companies are required by the California Vehicle Financial Responsibility Law to report auto insurance coverage lapses to the state – so California always knows which drivers are going without insurance.

If you are getting ready to purchase new auto insurance or switch providers, this information is important to remember.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.

A recent study has shown that because of the down economy, many people are letting their auto insurance lapse because they can’t afford the premiums.  This means that you are more likely to get into an accident with someone who cannot cover the damage of your vehicle, or worse yet, your medical expenses. 

According to the Insurance Research Council, California ranks 7th on the list of most uninsured drivers.  As much as 18% of people are not paying, and that percentage goes up in large urban areas.  That means that 1 in 5 drivers are on the road, uninsured, and that number is expected to rise.

What does that mean for you, the consumer?  It means that if you get into an accident, then there is a 1 in 5 chance that the other person involved will not have coverage to pay for the damage to your car or your medical bills.

Now more than ever, you need to make sure that you are protected in the event that you are in an accident with an uninsured motorist.  Review your policy to see what your coverage is.  If you don’t already have uninsured motorist or underinsured motorist UM/UIM coverage, now is a good time to look into it.

If you have any questions about insurance you can always contact us at www.aisinsurance.com or call 888-772-4247

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.

 You know that you need to have insurance coverage for your personal vehicle – liability, collision and comprehensive, personal injury protection, and uninsured motorists’ coverage.  Did you know that you may need the same kind of insurance coverage for the vehicle you use in your business?

While there are similarities between the two, a commercial auto insurance policy differs from a personal auto insurance policy in many important ways.  Be sure to ask your auto insurance agency to explain all the technical details and your coverage options.

Additionally, check with your auto insurance agency to ensure you have sufficient auto liability coverage.  In the state of California, for example, commercial auto insurance is important for businesses to have on any vehicle used to transport employees.  Without such coverage, should an accident should occur, you could find that not only your business assets but also your personal assets are at serious risk.

Commercial auto insurance in California can cover the following types of vehicles:

• Trucks
• Vans
• Cars
• SUVs
• Heavy trucks and trailers
• Dump trucks
• Box trucks

To learn more, contact your auto insurance company to find out if you need a commercial auto insurance policy for your vehicle.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.

 The bill that was signed by Governor Schwarzenegger back in 2006, banning the use of hand held mobile devices while operating a motor vehicle, is set to go into effect on July 1, 2008. The Governor believes that the new hands free law will make the roads safer.

He said, “The simple fact is it’s dangerous to talk on your cell phone while driving. CHP data show that cell phones are the number one cause of distracted-driving accidents. So getting people’s hands off their phones and onto their steering wheels is going to make a big difference in road safety. The ‘Hands-Free’ cell phone bill will save lives by making our roads safer. I want to thank Senator Simitian for authoring this bill and for his commitment to the safety of his fellow Californians.”

What the law states:

• The law prohibits drivers from using any type of hand held mobile device while driving, beginning on July 1, 2008.
• Drivers can make emergency phone calls with their hand-held phone.
• Commercial drivers may use push-to-talk phones until July 1, 2011
• Emergency Response drivers may use hand held mobile devices
• Drivers under the age of 18 are not permitted to use any type of mobile device while driving; even if it is a hands free device.

It is still encouraged to not use your cell phone at all while driving. Although using a hands free device is better, it does not completely eliminate the distraction of talking on the phone. If you can, please pull over to the side of the road to make any necessary phone calls.

If you are caught driving in California while talking on your hand held device, you will receive a $20 ticket on your first offense. If you get caught again, the fine goes up to $50. Right now, you will not receive any points on your driver’s license for violating this law, but law enforcement officers can pull you over solely for this violation.

The law goes into effect on July 1, 2008. There is no grace period; so make sure you get your hands free device in time.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.