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In an effort to make sure everyone has and can afford car insurance, law officials in California have launched a new Low Cost Auto Insurance program for low income residents. This program will help eliminate the amount of uninsured drivers on the road, while reducing the financial burden many auto insurance companies and insured drivers have been feeling due to the large amount of uninsured motorists on the road. |
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In most states, the motor vehicles department has a "point" system, which is used to track your driving record. Generally, each type of infraction (moving violations, parking tickets, at-fault accidents, driving under the influence, etc.) is assigned a certain point value. When you are found guilty of one of these infractions, the appropriate number of points is added to your driving record. The more points you have, the worse your record. |
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If you're planning to take a cross-country road trip this year, you might be considering purchasing a radar detector to help "guard" you from police traps. Buyers beware; there are legal issues that surround the use of radar detectors in all 50 states and these laws could cost you more than you bargained for! |
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After a car accident, your insurance company may recommend that you go to one of its preferred auto body shops to have the damage repaired. Choosing a preferred shop may expedite the repair process, but as with any auto body shop, the possibility exists that you may not be satisfied with the work that was done or the parts that were used. |
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Broken windshields and other glass are typically covered under the comprehensive coverage portion of an auto insurance policy. Comprehensive generally provides coverage for physical damage to your vehicle caused not by a collision with an object or another vehicle, but by a variety of other specific perils. This type of coverage is optional in most states and, if purchased, will usually raise your premium and carry deductibles. It may or may not be cost effective, depending on the value of your vehicle. |
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Actually, it's very unlikely that any type of insurance would be canceled after you file a single claim. However, filing a claim could increase your premium on certain types of insurance.
For example, your auto insurance premium will almost certainly increase after an accident, especially if you're at fault. The reason for this is simple: actuarial evidence indicates that people who have had accidents in the past are more likely to have accidents again in the future. This means the insurance company could see another claim from you someday, so there is a logical reason to charge you more for insurance coverage. The big question is how much your premium will increase. This is more difficult to anticipate, because insurance companies can use different formulas to calculate rate increases.
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If your son is borrowing your car to take with him to college, he must be listed as either a principal driver or an occasional driver on your insurance policy. Most insurance companies will consider someone as the principal driver on the policy if he or she:Is the registered owner of the vehicle,
Drives the vehicle to work or school, or
Drives the vehicle more than anyone else.
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The connection between a driver's safety record and credit rating is not readily apparent to most. Many consumers feel that insurance companies are intrusive when they request such information on an automobile insurance application. Insurance companies explain that credit information is needed to make a complete risk analysis when evaluating an insurance application. |
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In most states, the motor vehicles department has a "point" system, which is used to track your driving record. Generally, each type of infraction (moving violations, parking tickets, at-fault accidents, driving under the influence, etc.) is assigned a certain point value. When you are found guilty of one of these infractions, the appropriate number of points is added to your driving record. The more points you have, the worse your record. |
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You're right to be concerned for your son, but he can probably find an insurance policy even if he's been driving without one for some time. The real question is: How much will it cost him?
Before issuing a policy, insurance companies generally do a thorough investigation of a driver's record and prior claims history. They will check to see whether your son has gotten any tickets in the past several years or whether he has reported an unusual number of accidents. When they discover that he doesn't have a prior claims history (because he hasn't had insurance), he'll probably be classified as a high-risk driver--even if he has a clean driving record.
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