California Car Insurance Requirements for Uber Drivers

Everyone would like to have extra money in his or her pocket and for many, car hire services such as Uber are a great way to earn that extra money with just a driver’s license and car insurance. However, there are things that people do not take into consideration before they sign up as a provider for services like Uber, including car insurance requirements. Some states may require that you obtain a commercial driver’s license and some insurance carriers do not provide coverage if you are using your car for business reasons. It is always important to research every aspect of Uber driving before you sign up and start taking passengers. California car insurance requirements for Uber drivers are important and are critical to protect both yourself and your passengers.

Uber is a ride share program where drivers sign up online to provide rides for people in their community. Included in its list of requirements to be a paid Uber driver are specific car insurance requirements with specific mention made that any driver in California must have California auto insurance. This means that you must provide proof of California car insurance as well as contact your agent to insure that your policy meets the California Car insurance requirements for Uber drivers. You must also be sure that you are not required to obtain a commercial driver’s license. If you must obtain a commercial driver’s license, you must also hold commercial vehicle insurance as your standard California car insurance will no longer cover you in the event of an accident. If you are involved in an accident and you do not have the proper license or proper California car insurance coverage, you will be completely liable for all damage to your vehicle and any others involved, as well as any injuries that occurred in the accident.

Uber is a great way to make extra money to save for vacations or just make paying your monthly bills easier. You must be sure to follow all the requirements to be an Uber driver as well as all the insurance requirements that California requires when it comes to engaging in a ride share service. California car insurance requirements for Uber drivers differ from other states, so it is important that you find out everything you need to know by contacting your insurance agent before you sign up to be an Uber driver. While being an Uber driver can put extra money in your pocket, you need to be sure to protect yourself and your passengers. While you might make extra money as an Uber driver in California, not following the California car insurance requirements for Uber drivers can end up being extremely costly and even risk the loss of your driver’s license and vehicle.

East Coast Auto Insurance vs. West Coast Auto Insurance

It’s no secret that auto insurance premiums differ all throughout the United States,  Although it might not seem fair, some regions of the country have higher priced monthly plans when compared to other locations.  For example: auto insurance rates are generally more expensive on the West coast when compared to the East Coast.  There are a few main factors that contribute to the truth of this matter.

California Auto Insurance Factors

Possessing the fifth highest car insurance premiums in the country, the state of California averages around $1,800 per year for auto coverage.  There are a variety of contributing factors that give California reason to produce some of the nations highest monthly plans.  One of the biggest factors is that residents of California are known to drive more and longer distances, which means they are on the road almost twice as much as Massachusetts residents.  Whether it’s a longer commute to work or covering a longer distance to visit friends, almost the entire driving population in California does so using their motor vehicle.  Because of all the extra driving, more insurance claims will inevitably be filed.  Another reason why California auto premiums are higher than those in Massachusetts is because of the amount of coverage that is required to operate a motor vehicle.  In fact, it has been outlined that California insurance companies require a minimum coverage of $5,000 for property damage, $30,000 for death or injury of multiple people and $15,000 for death or injury of a single individual.  You can compare Baltimore rates here.

Tips for Finding the Lowest Possible Auto Insurance Rates

Unfortunately, there is no way for California residents to avoid paying such high monthly premiums for their auto insurance.  Luckily, with the proper research, there are a few ways to lower the monthly rates as much as possible.  One of the best ways to find a lower auto insurance policy is by doing some extensive research.  By searching online and comparing a variety of different providers, you will undoubtedly be able to find a company that will give you the best possible monthly premium.  A great benefit of using the internet to search for auto insurance quotes is that it’s not that time consuming and can be done with very little difficulty.  In addition, the type of vehicle that you drive will enable you to receive a lower discounted auto rate.  Generally speaking, insurance companies will offer lower monthly premiums for people that drive safer vehicles.  Some cars that are considered to be more safer than others include minivans and SUV’s.  Another tip that will help you save money on your monthly plan is to make sure that your driving record is clean with no previous driving violations or accidents.  By having a lot of negative reporting on your driving record, auto insurance companies will automatically start giving you the highest rate possible.  Even if an accident or violation was many years ago, each negative finding on your record could result in a higher monthly premium.

Insurance for Classic Cars in California

Classic cars are bought for different reason, to some people they buy them for luxury while many buy them for a hobby. When someone buys a classic car, it’s always important to consider the uniqueness of classic car insurance. Contrary to popular belief classic car insurance in California is cheaper than traditional Californian car insurance, this is because these cars are being owned by a responsible adult and more often they are highly pampered. Given that collector car insurance will be cheaper and it’s a mistake to insure a classic car under a traditional insurance policy.

classiccar

Photo By – dfirecop

Low Depreciation  in Value

The basis for  high prices associated with the modern cars is the idea that their value depreciates with time, and with a classic car the value only increases with time. This means that if you placed your valued collector car under a tradition car insurance California policy, you risk getting a depreciated value for your classic car in case anything happen to it. You may wonder why a car with a high replacement cost  attract cheaper insurance rate, it is simply because the car has been aforementioned and are extremely pampered. The collector car insurance is based on the premises that the owner of the car values the car and will do all they can protect the car from damage.

20% Reduction Rate

The rates vary with the different classic car insurance companies in California which range between 20% reduction and these differences rates between companies are mainly because of the way a car is being valued by the company. Most California classic car insurance companies only concerts on the value of the car and its intended use, while others are looking for many factors. So you will also realize that most of this low cost of the insurance is having many restrictions which may be applied. For example, you will find that most Californian insurance providers will not cover a car driven by younger driver, and in some cases it’s important that the car is parked in a garage and not an open driveway or the number of miles the car can be driven per year will/may be restricted.

Seek Legal Advice Before Insurance

The companies which offer classic car insurance in California they differ on certain restrictions because of the insurance market for classic cars are much more specialized, therefore it’s incumbent for any car owner or a prospective car owner  to make an informed decision on the right type of policy to go for insuring their car. Most policies are tailored to suit the insurer but not insured because of unlike the latter, the formal is in business. Why may be surprised with many cases of clients crying foul over their money lost on insurance because of wrong decisions in the light of the best way to insure their cars. Before insuring your classic car, you should seek legal advice before making any legal agreement.

How Much Is Car Insurance in California Per Month?

The state of California is known for its Hollywood films, beautiful beaches, bountiful grape vineyards and wineries. Also, since it’s the third largest State in America, you can expect that you will experience some of the busiest roads. In the state of California car insurance is a must! It’s a necessity and requirement for all car owners in every State, not only in California.

There is no question that every car owner wants to get a cheap comprehensive auto insurance. This is because of its extensive coverage for the plan holder. It is basically one of the best insurance plans. The coverage for this plan will not only insure the liabilities of the plan holder but also the vehicle. There are even insurance companies that provide more comprehensive coverage than the usual by extending the coverage to the other party involved in the accident. It is required for all car owners to have insurance plan but not specifically comprehensive auto insurance. This is due to the cost of this type of insurance as compared to the other plans. However, there are several companies that offer cheap comprehensive auto insurance coverage for interested clients. Clients will be amazed at how this type of auto insurance provides a wide array of coverage that will ease the minds of any plan holder in case of an accident. Conducting a comparison between all insurance options should be conducted before acquiring any insurance plan offered. This is done through getting an insurance plan quotes from insurance companies. Interested car owners will be able to discern which plan best fits his or her needs. The common factors considered by plan holders are the price per coverage and extra benefits of the chosen insurance plan. Several companies offer comprehensive plans with additional benefits of roadside assistance and car damage repair. These perks may not be the same with other insurance companies but then a careful study with the differences will take its toll later.

So, how much is car insurance in California per month?

There are several factors considered to identify the amount of your car insurance. Factors such as the type of car a person drives, driving history, gender and age. These factors are taken into considerations as part in calculating the premiums. So, if you happen to receive a driving violation ticket, this can cause you an increase in your car insurance. In the State of California, all drivers are required to have at least basic liability insurance. It usually covers a liability limit of $15,000 for injury per person and a $30,000 coverage for bodily injury per accident. You will also get a $5,000 for personal property damages per accident. For this, you will have to pay an average of about $75 per month.

According to statistics, the average car insurance rate in the State of California is around $1300 per year. But the rate is actually fluctuating for the past few years. Each insurance company varies their rate accordingly depending on the features of the insurance policy. Of course, the more comprehensive your car insurance is, the higher it costs.

Can I Buy Auto Insurance For California Online?

The biggest benefit to buying auto insurance online these days is the time it saves you.  It use to take hours of calling individual companies requesting personal quotes.   Sites like RideCoverage.com now provide online car insurance quotes with the completion of a simple form.  By entering your 5 digit zip code, age and current policy holder status you can instantly get multiple companies offering you great rates.  Further clicking on any of these companies will bring you an opportunity to purchase a personalized auto insurance policy that is right for you.

Benefits of buying car insurance online

  • Fast
  • Easy
  • Convenience
  • Save money

You don’t have to be a new driver to buy your insurance online

One misconception about buying an insurance policy online is that you must not be covered by another insurance company.  That’s simply not true.  You can get online quotes, talk to an agent and make the switch today.  People switch auto insurance carriers regularly.  It’s business – you deserve to save the most money on your insurance needs.  Whether that be with your existing policy or with a new one.  Enter your 5 digit zip code above and start saving money today.

How to Get Auto Insurance in the State of California

The State of California, like most other states in the U.S., require you to maintain at least a minimum level of auto insurance coverage whether you drive a beat up old transportation special or a brand new vehicle. The problem is that most people do not know what their insurance options are, and usually end up spending too much money for coverage they do not need, or not enough money for coverage that would benefit them. If you need to get insurance in the State of California, here are a few things to consider before you sign your name on the check for the premium.

Compare Rates

As with any purchase you will be paying for long-term, you want to be sure that you are getting the best rate. Rates not only vary based on the vehicle you drive and whether you own it, finance it or lease it, they also look at your driving record, marital status and credit rating. While this may take some effort, the only way to get a true cost for an insurance policy is to provide your information to a few different insurance companies, whether you choose to do it online or over the phone. A good insurance company will not only be able to give you a price on a premium fairly quickly based on your needs, but if there are circumstances that cause your premium to be higher, suggest an alternative. Things such as poor credit can be a prompt for them in most cases to suggest a subsidiary of their company, or even another company that will give you a better rate.

Compare Coverage

As mentioned above insurance rates vary for many reasons, even just going from one company to another. When you get a quote on a policy, you want to make sure that you are comfortable with the coverage as well as the dollar amount of the premium. If one company quotes you a certain amount for a $1000 deductible and another company is just slightly more for a $500 deductible, the obvious choice is to go with the lower deductible and pay a slightly higher premium. The deductible is the out of pocket expense that you are responsible for if you cause an accident or are in an accident where insurance for the other party is questionable. Rule of thumb is, if you do not have the amount of the deductible in your bank account or on a credit card the day you sign you policy, adjust it to fit an amount you can afford.

Know Your Driving Habits

Older people or people that work from home are unaware that they can get a great discount on their policy for limiting the miles they drive. If you do not drive your vehicle daily or within a few miles of your home at all times, you can receive a discount on your policy for being a part-time driver. If your vehicle is paid for, in some cases it can actually cut your 6-month premium in half. The less you drive the less apt you are to be involved in an accident, and this is the insurance company’s way of thanking you.

Agreed Value Policies

Depending on the insurance company you choose, if you have a vehicle that may be worth much more than what the book value is, you may want to inquire into something called “agreed value” insurance. What this means is that you and your insurance company come to an agreement on the value of your vehicle and base your insurance rates on that. If you have an older vehicle with low mileage, or a collector vehicle that you drive more than just on weekends, this may be a money saving way to protect yourself in case you are involved in an accident with that vehicle.

Conclusion

While these are only a few of the thing to consider when getting vehicle insurance, the most important point is that you have insurance. In the State of California if you are caught driving without insurance, you can not only lose your license and have your vehicle impounded, but you will be forced to pay for two policies instead of one to make sure that you are covered. Getting insurance is as easy as taking the time to sit down in front of the computer and search insurance companies. Most companies provide a page to apply for a quote online with no obligation. Make sure you compare these rates, as well as the coverage to make sure that you are getting what you need when you may need it the most. While it may be a bit time consuming to get an insurance policy, the amount of time it will save you in court fees and riding the bus if you are in an accident without insurance is well worth it.

Who Is Covered Under An Auto Insurance Policy In California?

This may seem like it has a simple answer, as obviously your first thought would be the person who owns the car. This is not always the case though, especially if you loan your car to a friend or family member. Knowing who is covered and when is important in case the person who is driving your vehicle is involved in an accident. When it comes to letting other people drive your vehicle, you do however want to use common sense and make sure they have a valid driver’s license and are not intoxicated or under the influence of anything that could impair their ability to drive. The following is a list of driver’s that are covered under a valid California auto liability insurance policy:

Named Insured

This is pretty self-explanatory; it is the person whose name is on the insurance policy. This can be the owner of the vehicle, spouse or family member whose name physically appears on the California insurance policy of the vehicle they are driving. If a named insured is involved in an accident there should be no question if they are covered or not unless the policy has lapsed or their driver’s license has been suspended.

Spouse

Even if the spouse of the named insured is not on the policy, the insured’s policy will usually cover them. Keep in mind that this is only if the couple is living together. If they are separated and no longer live in the same residence, there might be an issue when it comes to coverage if they are involved in an accident.

Relatives

Relatives is defined as anyone living in the same household as the named insured who is related to them by blood, marriage or adoption.  In other words, if your child, spouse of your child or other blood relatives that live with you drive your car and are involved in an accident they are covered. Again, keep common sense in the forefront and make sure that they have a valid driver’s license before allowing them to drive your vehicle.

Other people

Although this sounds like a board term, it means that anyone you give permission to drive your vehicle will be covered. This means if your car is stolen and the driver causes an accident, you will not be covered and in most cases not be held responsible for the damage. This means that if you give a friend or co-worker permission to drive your vehicle, for whatever reason, they will be covered under your policy in the event they are involved in an accident.

Before you let anyone drive your vehicle, you want to make sure that he or she has a valid driver’s license. If they are involved in an accident and their license is revoked or suspended, not only will the person driving not be covered, you risk having your vehicle impounded and paying large fines to get it back, as well as having it repaired and repairing any other vehicles involved. The best thing to do is simply not loan your vehicle out to anyone that is not on your insurance policy, then there are no questions when it comes to insurance coverage.

California Auto Insurance Rates With DUI / DWI on Record

Aside from the potential of hurting or killing people while driving drunk, you also face severe financial consequences if you are arrested and/or convicted of DUI (driving under the influence). If you are arrested for a DUI, which means being pulled over by a police officer and a breathalyzer test shows that your blood alcohol is over .08 percent or greater, the State of California only allows 10 days for you to request a hearing or your driver’s license is revoked. If you do not request a hearing and your driver’s license is revoked, you will not only have to pay for all the fines involved with the DUI itself, but you will have to go through the process and pay the fees and fines to have your driver’s license reinstated as well. This is just the initial costs involved with a DUI; there are financial consequences that can follow you up to 10 years.

If it is the driver’s first DUI and they agree to have blood drawn to determine their BAC (blood alcohol count) upon arrest, they will receive a four-month license suspension and will be required to file an SR-22 (formal proof of insurance) with the DMV for three years. They are also required to take alcohol education classes. The driver may or may not be granted a restricted license to allow them to driver to work and alcohol education classes only. You will also receive two “violation points” on your DMV driving record for 10 years. For first-time DUI drivers who refuse to allow blood to be drawn for a BAC test, a license suspension of one year is mandatory and you will not even be considered for a restricted license to drive to work. They also need to file and SR-22 in order to have their license reinstated after the suspension is over.

No matter if you agree to the blood BAC test or not, your insurance company will likely raise your premium of minimum of 20 to 30 percent. Even if you do not have any previous violations, a DUI may cause the insurance company to consider your policy not renewable when the current policy period ends. Although you do not have to inform you insurance company that you have been arrested or convicted of a DUI, insurance companies run a DMV record check before they offer you a renewal. At that point, it is up to the insurance company whether they choose to renew your policy or not. You still have to have the SR-22 in force in addition to your current insurance.

Summary of costs associated with DUI in the state of California

  • Paying fines, fees or any other costs associated with your initial arrest, which may include impound and towing fees and bail.
  • Retaining an attorney to assist you at your hearing
  • If you fail to request a hearing within 10 days, the additional costs of having your license suspended for a year
  • Increased insurance premiums for at least 10 years, as well as paying to have a valid SR-22 for the three year required period
  • Time lost from work or loss of your job due to your arrest or conviction
  • Court costs and fines for your arrest and violations
  • The costs of securing and maintaining a high risk insurance policy

One DUI arrest can affect your financial situation for up to 10 years, or longer if you lose your job or are unable to get auto insurance.

Drinking and driving is not smart to begin with, but the potential consequences you face in regards to your financial and personal freedom should be reason enough to not do it. Most people cannot afford to spend the next 10 years of their lives paying twice the amount of insurance they need to, and for the first three years of that paying for two insurance policies. Before you drink and drive, consider the immediate consequences first, but then think about the long-term financial hardship you will face.   The punishment for DUI is in the event that you are merely pulled over and arrested, if you are involved in an accident and injure or kill another person the consequences can last a lifetime.

Does California auto insurance cover driving in Mexico?

With the price of almost everything on the rise, including plane tickets, more people are choosing to drive to their vacation destinations instead. Those who do not live far from the Mexican border can merely cross, and have a whole world of vacation opportunities open to them. However, there are usually more important things on the vacation plans than car insurance. People travel into Mexico and more than likely just assume that their insurance will cover them since Mexico is part of the North American continent. Most people only discover that they are not covered after being in an accident in Mexico, and by then it is too late. The following is information about auto insurance coverage when traveling into Mexico:

Does my auto insurance cover me to drive into Mexico?

Chances are good that your insurance coverage will not carry over when you are driving in Mexico. Most insurance policies, if you read the fine print, define covered territory as the United States and its territories or possessions, Puerto Rico and Canada. The bad news is that Mexico does not fall into any of these, so your policy is not valid when you cross the border.

What can I do to make sure that my car is covered if I drive into Mexico?

If you not have an endorsement to cover you if you travel into Mexico, you can obtain one from your insurance company. It is called the Limited Mexico Coverage endorsement. This is only a temporary endorsement added to your policy that will cover you driving over the border; but be careful, it has quite a few limitations.

If I get the endorsement on my policy, what exactly does it cover?

Endorsements to cover your car when traveling into Mexico have some strict limitations, these include:

  • You will only be covered if the accident occurs within 25 miles of the U.S. Border, if you plan to travel further, you must obtain Mexican car insurance
  • The endorsement will only cover you for a maximum of 10 days of travel in Mexico
  • The only coverage for this endorsement is for liability, it does not include comprehensive and collision coverage, you must bring your vehicle back into the U.S. for repairs. If you vehicle is badly damaged or totaled, your comprehensive and collision coverage will apply if they are already part of your policy.
  • If you vehicle is determined to be a total loss, you will be paid the actual cash value based on the U.S. market, not the Mexican car market.

If you are planning to drive to Mexico, make sure that your car is covered. Add calling your insurance agent to your vacation “to do” list so you can be sure that your vehicle will be covered while you travel in Mexico.  Also, be sure that you read the endorsement thoroughly so that you are aware of what it covers and what it does not cover. By driving instead of flying to your vacation destination, the intent is to save money, but if you are involved in an accident because you did not make sure you were covered, it probably will end up cheaper flying anyway.

CA Insurance Limitations on Leased, Financed & Owned Vehicles

A majority of people are not aware that the limitations on their car insurance vary depending on the ownership status of the vehicle. The state of California, much like other states, sets minimum limitations that every driver must have to legally drive a vehicle. Loan and lease companies can require these limitations to be raised to protect their interest in a financed or leased car. If you own the vehicle free and clear, you are only required to have basic liability coverage, although if it a relatively new car most people will maintain at least their collision coverage. Following is an explanation of the differences between the coverage:

Limitations based on leasing a vehicle

Although California sets the limitations on the minimum amount of coverage you must have, most lease companies require even higher limitations.  When leasing a vehicle, the vehicle is owned completely by the leasing company. They require higher limitations because they are protecting their investment. They want to be sure that if you or someone else damages or totals the vehicle, or in the event it is stolen, that you have coverage to pay for it. The typical lease limitations are as follows:

Liability coverage:                       $100,000 per person/$300,000 per occurrence

Property liability coverage:          $50,000

Comprehensive and Collision must be for actual value and you must have no more than a $500

Limitations based on financing a vehicle

The limitations when you are financing a vehicle are the same as the state minimum, which is as follows:

Liability coverage:                       $15,000 per person/$30,000 per occurrence

Property liability coverage:          $5,000

The difference, however, is that finance companies also require you maintain not only liability coverage, but comprehensive and collision coverage as well. As they are the lienholder on the vehicle until it is paid off, they, like leasing companies, want to protect their investment. This is required until the vehicle is paid in full, and then the extra coverage becomes optional. To protect yourself in the case the vehicle is totaled, there is a product called gap insurance. If your vehicle is totaled and you still owe a balance, the gap insurance would cover the difference between what the insurance company pays and what you actually owe on the loan.

Limitations based on an owned vehicle

If you own your vehicle free and clear, you are only required by the state to carry minimum coverage. These are the same limitations as a financed vehicle, but you are not required to maintain comprehensive and collision coverage.

Liability coverage:                       $15,000 per person/$30,000 per occurrence

Property liability coverage:          $5,000

However, even if your vehicle is paid off, you may not want to drop the extra coverage. You should consider only dropping the comprehensive and collision coverage is your vehicle is worth less than about 10 times the amount you pay for the coverage. For example, you own a vehicle that is worth $4,000 and your total yearly insurance premium is $1,000 of which $600 of that is the comprehensive and collision premium. Using the 10 times rule, $600 times 10 is $6,000. Since your vehicle is only worth $4,000, you might consider dropping your comprehensive and collision coverage. Keep in mind that if you do total your vehicle, it would be like having a $4,000 deductible if the vehicle is damaged or totaled. The decision to keep or drop collision and comprehensive is entirely your decision, so consider your financial situation before you drop them.

Now that you have an idea of how the limitations work, you can look at your policy and make sure that you have enough insurance, or have some coverage that you can drop and save money. If you have a lease vehicle and have lower limitations then mentioned earlier, you might want to contact your insurance company and have it corrected. If you do require higher limitations or additional coverage because you lease or finance a vehicle, make sure you talk to your insurance agent to make sure you are getting the best deal you can. You also want to be sure that you have at least liability coverage, as it is the law in California as wells as almost every state.