On August 28th, California Insurance Commissioner, Steve Poizner laid out the groundwork for greener auto insurance options. The new greener options also may reduce premiums. Insurance Commissioner Poizner unveiled last week his Pay as you drive, green insurance option. The ultimate goal of this plan is to reduce co2 emissions and reduce premiums.

Poizner hopes this move will have a positive impact on the environment. The plan envisions that people will start driving less with the immediate goal of saving money, but at the same time putting less co2 in the air from automobile emissions. As a result, the air will become cleaner and less polluted from vehicles. A study conducted by the Environmental Defense Fund estimated that if 30% of Californians participate in this new voluntary coverage, the state of California could avoid 55 million tons of CO2 between 2009 and 2020. That is the equivalent of taking 10 million cars off of the road!

In addition to the positive effects on the environment, the new plan will have a positive impact on Californian’s wallets. One hope is that insurance premiums will go down. Since the new plan calls for miles driven to account for more of the premium base, the hope is that people will start driving less. And as a result of the decreased driving, estimates show that Californians can save approximately $40 billion in vehicle related expenses, including gas, maintenance and repairs.

To participate in the program, drivers will have to verify their actual odometer reading. Drivers will be able to do this through automotive repair/service records or a technical device used to track mileage. While the pay as you drive program is still in the planning stage, contact your auto insurance company for ways to save money right now.

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 state of California requires every vehicle to be insured with a minimum of bodily injury and property damage coverage. These minimums are set to protect the citizens of California from an injury or loss of property resulting from an automobile accident.

The minimum bodily injury liability that a Californian driver may take out is $15,000 per person and $30,000 per accident.  The minimum for property damage liability is  $5,000. While it is recommended to purchase as much coverage as you can afford, you can drive with just having these minimums. The State wide minimum requirements are more commonly referred to as 15/30/5 coverage.

The state of California operates under a tort system. By definition, tort is an injury to another person or to property which is compensable under law. A tort state is the opposite of a “No-fault” state. In a tort state one party must be designated to be at fault before one can receive compensation for damages, although fault can be shared. If you are travelling outside of California, make sure to check out the laws of the state you are travelling to as the laws differ from state to state.

Contact your local AIS office to discuss the California insurance laws and to find the best rate on your auto insurance policy.

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.

 Most auto policies cover the insured, any additional drivers listed and any occupants in the vehicle. In most cases your coverages are applicable to all occupants in the vehicle at the time of an accident (although liability coverage is not designed to cover injury to you or other listed drivers). But what if you are not driving the car at the time of the loss?

This is a common question and the answer depends on who’s driving. In most cases, the insurance follows the vehicle, not the driver. So if your vehicle is involved in an accident and you are not driving, your coverage will still apply. It is possible that your state’s law or insurance company’s policy may differ, so be sure to check.

In most cases, it is ok for you to loan your car to a visiting friend or family member and your coverage will still apply. The only time you may be denied coverage is if you did not grant the driver permission to use your vehicle. In this case you would have to file a theft claim and proceed in that manner if you wish to recover the damages.

If the driver of your vehicle lives with you, whether it is a family member or a friend, they will have to either be excluded or included on your policy. Specifically, any household members over the legal driving age must be one of the prior. Anyone who becomes a household resident during the policy term must also be added or excluded. If you decide to exclude them, and they’re involved in any accidents while driving your vehicle, the claim will automatically be denied.

Be sure to check your state’s laws and your insurance company’s policy to avoid any potential conflicts.

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.

More than likely you have experienced some sort of car trouble. Maybe it was a dead battery, a flat tire or maybe you locked your keys in the car. We’ve all been there and know that sometimes a little help is all you need. That help comes in the form of Roadside Assistance. Roadside assistance is an optional coverage that is available through your insurance company.

What does it cover?

Towing: If your vehicle needs to be towed in order to be repaired, roadside assistance will take care of that. The distance to be towed may vary for each insurance company, but most will usually tow your vehicle to a repair facility within 15 miles of your location. If you are in a remote area, they will usually tow you to the nearest repair center, no matter how far it is.

Flat-tire: If you are stuck on the side of the road with a flat; don’t worry. Roadside assistance will come and help you change your flat tire at any time of the day.

Dead Battery: If your battery dies, roadside assistance can help. They will either jump start your battery or tow you to the nearest facility where you can purchase a new one. In some cases, the roadside assistance vehicle may have additional batteries for purchase in their vehicle.

Emergency Fuel & Fluids: If your vehicle runs out of gas or overheats, roadside assistance can deliver what you need to get your vehicle moving again. Most roadside assistance services will deliver whatever you need; but you will be required to pay for the fuel or fluids that you require.

Locksmith Service: If you lock your keys inside your car or misplace them, roadside assistance will send out a professional who can make you a new key, or get inside your vehicle to recover your key. In most cases you will only have to pay for the cost of a new key.

Roadside assistance can usually be added to your policy for a very minimal cost. Check with your auto insurance agency or company to see how much it would be to add to your current policy. For a small cost you get a lot of security.

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.

 What is it?

Scheduled personal property (SPP) insurance is an easy way to protect your personal valuable items. Your standard homeowner’s policy provides coverage for these types of items, but there is always a cap, called a sublimit, that reduces coverage for specific items below the overall limit of personal property coverage.

Scheduled personal property can be added to your homeowner’s or rental policy as an endorsement. It will help protect your personal or business items not covered under your regular policy due to the risk potential being too great.

Why get it?

Universal Coverage: Most of these types of policies will cover your items anywhere in the world. If your wife loses her engagement ring while abroad; you can recover the cash value if it is listed in your SSP coverage. All item declarations must be made prior to any claim. Make sure all of your valuables are on your policy; and if you receive or purchase a new item, make sure to add it to your policy immediately.

SPP will cover just about anything, except in rare cases where the item is a one of kind and can not be replaced.

Here is a list of common items that may require SPP coverage:

Jewelry: wedding rings, pendants, bracelets, watches, precious and semi- precious stones.

Furs: real fur garments and garments that are trimmed with real fur.

Cameras: digital, still, movie, video and equipment.

Musical Instruments: professional and non-professional

Silverware: silverware, antique silverware and gold ware

Fine Arts: paintings, etchings, vases and sculptures

Manuscripts: books and letters

Sports Equipment: golf clubs, workout equipment and other pricey items

Collectibles: coins and stamps

Tools: Hand and power tools

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.

 There are many factors that auto insurance companies take into consideration when determining your auto insurance premium. The way in which you meet these criteria can have a positive or negative impact on the amount you pay. Some of these factors are you the driver, your driving record, credit rating, where you live, type of automobile, and your annual mileage. While there are other criteria that may help to reduce your rates, these are the standard qualifications that are considered when formulating your auto insurance premium.

You the driver:

Many things about you that you can not control will affect your insurance premium. These things include your years of driving experience, gender, and marital status. For example, male drivers with limited experience will pay higher rates due their increased likelihood of becoming involved in an accident.

Driving Record:

Auto insurance premiums are based upon the costs to cover future claims and your statistical risk; which is based on past accidents, traffic violations and years of driving experience. If you have a history of accidents and traffic violations, you are much more likely to pay higher auto insurance premiums. Also, new drivers will likely pay higher premiums as they have not yet established a good driving record.

Where you live:

Where you live plays an important role in determining your auto insurance premiums. Most insurance companies will base this upon your zip code. They have formulas which calculate the risk of accidents within a given area based on traffic volume, which is usually higher in urban areas, and vehicle theft and vandalism statistics.  The California Department of Insurance has recently mandated new regulations that will decrease the significance of where you live, but it is still a factor.

Your Vehicle:

The type of vehicle you own also can help or hurt your insurance premiums. One thing to take into consideration when purchasing a new car is the price of repairs. If parts are generally more expensive, then it is likely your rates will be higher. Having a vehicle with certain safety features; such as anti-theft devices, good crash test ratings and low theft reports, can help to reduce your insurance premiums.

Where you drive:

When applying for a policy you are required to state your annual mileage.  The more you drive, the higher your insurance premium. Since you are on the road longer, your chance of being involved in an accident is greater. 

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.

Many classic car owners think that their regular auto insurance covers their classic car with the same level of coverage. However, they are incorrect. If your vehicle fits into the classic car category, make sure you purchase a special policy that will provide you with the appropriate coverage to protect you and your vehicle.

Different types of vehicles can fall under the classification of a classic car. The following is a list of different types of classic cars.

- Antiques: 25 model years and older

- Classics: 20-24 model years

- Collectibles: 15-19 model years

- Exotic Cars: Newer than 15 years, considered to be appreciating in value

- Street Rods: Made before 1949, mechanically and/or cosmetically altered

- Customs: Made since 1949, mechanically or cosmetically altered

- Kit cars: Built from purchased packages, and assembled by an experienced professional,     manufacturer or dealer.

Before you take out a classic car insurance policy, make sure to fully understand what is and what is not covered. Coverages and qualifications may differ between companies. Click here to start the quote process for your classic car. Make sure to have your personal information and vehicle information handy when filling out the application. You can receive a quote in less than 10 minutes, so get started today.

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.

It all depends on who you ask. Most women will tell you they are better drivers because they are more careful and more considerate than men. If you ask men, you’ll likely hear that they are more aware and handle the car better in all conditions. When it comes to determining auto insurance rates, statistics, opinions are not what counts.

If you guessed that males pay higher rates, you’re right. According to many studies and facts collected on accidents from state and local agencies, men are more likely to be involved in a car accident. In addition, IIHS stated that in 2006, more than twice as many male drivers were fatally injured in auto accidents.

Although male drivers are placed at higher risk, it is usually only between the ages of 18 and 25. Once a male driver reaches 25, rates usually go down; as long as he has a good driving record. Over time, if there are no tickets or accidents, the rates should decrease to about the same level as a comparable female driver.

Remember, no matter if you’re a man or woman, 18 or 45, there are always things you can do to reduce your auto insurance rates. Discounts are offered for certain professions like teaching. Discounts are also awarded to people with good driving records, additional safety features on your vehicle, and many more. Also, if you are still in school, you may be eligible to receive discounted rates for receiving good grades. Check with your carrier to see if you can receive any discounts.

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.

 Parties and summertime go hand in hand. With this in mind, it’s a great time to make sure you understand the “social host” laws. Social Host laws are designed to prevent against the distribution of alcohol to minors and people who have had too much to drink. These laws apply to “social hosts” who are providing alcohol in a non-commercial setting. Violation of this law can result in criminal and civil charges. Social Host cases are most commonly brought about as a result of a vehicle crash, or other incident involving serious injuries, after a party.

Social host liability is a state policy, and varies by state to state. Before hosting a party, make sure to check your state’s laws. Click here to find out the laws in your state. The only way to completely avoid social host liability is to not serve alcohol at all.

Aside from social host liability, if you are serving alcohol to minors, you will more than likely be facing other charges as well. Distribution of alcohol to minors is illegal in almost every situation. In some states, if a minor is caught serving alcohol to another minor, they may also face charges. And if this happened in a minor’s home, the parents of that child is liable as well.

Be careful when partying this summer. Make sure you know your state’s social host laws and abide by them. Have a fun summer, but make sure it’s a safe one!

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.