2012 END OF WORLD !!

Under the Vehicle Financial Responsibility Law, all vehicles that are driven on California roads should have liability insurance that provides financial responsibility for any injury or damage that is brought about by a traffic accident regardless of who is at fault.

This passage of the law is also a means for the California government to remove uninsured vehicles from its highways.

California vehicle owners can choose from four types of financial responsibility options which are:

• Car accident insurance policy with liability coverage

• A cash deposit of $35,000 to the Department of Motor Vehicles (DMV)

• A DMV issued self-insurance certificate

• A surety bond for $35,000 from a company licensed to do business in California.

All vehicles on California roads must obtain and maintain any of the above forms of financial responsibility whether the car is parked or operated.

An evidence of financial responsibility should always be in the vehicle at all times.

Acceptable proofs of financial responsibility are:

• A document or identification card from the car accident insurance company

• A DMV authorization letter, if the motorist is self-insured or a cash depositor

• A California Proof of Insurance Certificate

Most motorists choose to obtain car accident insurance policies to fulfill the financial responsibility requirements.

The minimum liability insurance coverage for private passenger vehicles in California is:

• $15,000 for injury or death to one person

• $30,000 for injury or death to more than one person

• $5,000 for property damage

An optional choice is the uninsured motorist coverage, where the policy holder can be compensated by their own insurance company if the liable party has no car accident insurance.

If the motorist chooses to avail of uninsured motorist coverage, he/she is required to purchase an amount equal to at least the minimum liability coverage for bodily injuries.

In addition, if a motorist avails of uninsured motorist coverage, he/she is required to purchase underinsured motorist coverage as well and it should also be at least equal to the minimum liability coverage for bodily injuries.

Driving without car accident insurance or any other forms of financial responsibility can be penalized by the DMV.

Vehicle registrations could be suspended if:

• The DMV is not notified that a car accident insurance policy has been cancelled and a replacement policy has not been submitted after 45 days.

• The car accident insurance information has not been submitted to the DMV within the issuance of a registration card.

• The DMV discovered that the vehicle registration was obtained by giving a false evidence of insurance.

Aside from suspension of registration, a motorist failing to provide proof of financial responsibility may cause a motorist to be punished through:

• Citation with fines that could reach $1,000 or more

• Impounding of vehicle plus fines

• Personal liability for damages if the motorist caused the accident which could lead to a seizure of some personal assets

Uninsured motorists are considered hazards on the road and that is why the government is working hard on cracking down on these irresponsible drivers.

If you were injured in a road accident where the liable party has insufficient or no insurance, consult immediately with a car accident attorney to help with your options.

by: Mark Dacanay

Car insurance rates are calculated accounting in various factors that determine the “risk” of the driver.

A “high-risk” driver will have a higher car insurance rate while a “low-risk” driver will pay a lesser premium.

The factors that are considered for calculating your car insurance rates are:

• Age - According to studies, teen and elderly drivers are more likely to be involved in a car accident than other age groups.

• Car model – Insurance companies also consider the possibility of your car being stolen. A more expensive car is much more likely to be stolen than a simple car.

• Accident History – Involvement in previous accidents automatically makes you a high-risk driver. If you are liable for multiple accidents, some insurance companies may even label you as “uninsurable.”

• Location – If you are living in a highly populated area, your insurance rate will be higher as there is more possibility of being involved in an accident than in areas with a small population.

• Gender – According to statistics, males are more involved in an accident than females, giving them a higher car insurance rate. However, recent studies show that female related accident rates are catching up to men.

These calculations may seem unfair to some, but it is the way it is and insurance companies are not likely to change its methods anytime soon.

The least you can do is to try and decrease your car insurance rates. The key to that is showing that you are a low-risk driver.

Here are some tips you can follow to decrease your car insurance rates:

Take a Driver’s Education Course

Although it is not required before getting a license, a driver’s education course could slash about 10% from your car insurance rate.

It will show that you are serious about being a responsible driver, and who knows, you might actually learn how to be a defensive driver after.

Buy a Safe Car

An expensive sports car is more likely to be stolen and an SUV is prone to rollovers. Buy a simple car like a sedan.

It will greatly lower your car insurance rates.

In addition, some insurance companies also give discounts for cars that are environment friendly.

Use One Insurance Company

If you insure your home and other properties together with your car with one insurance provider, you should receive discounts.

This also applies to multiple cars. Insuring all cars under one insurance company will lower your car insurance rate.

Add Safety Features to your Car

Safety features such as automatic seatbelts and side airbags will prevent or lessen injuries during an accident.

Less injuries means less claims for insurance companies, so it should lower your car insurance rate.

Add Anti-Theft Devices

Adding anti-theft devices and parking your car in a garage reduces the risk of your car being stolen.

The reduced risk of theft would reduce your car insurance rate. Discounts can reach up to 25 percent.

Those are just some of the ways to keep your car insurance rates low. The best way to keep them low, though, is to avoid accidents.

That is why it is important that you consult a car accident attorney if you are involved in one. They will help make sure that if the accident is not your fault, then the claim will be made from the liable party’s insurance company and not your own. by: Mark Dacanay