Reader’s Question:

I just got my driver’s license here in California two months ago, and I finally was able to come up with the money to buy my 1970 Plymouth GTX 440. My dad says this is going to hurt me auto insurance premium wise. What’s that all about?

Jim

Los Angeles, CA

Jim, your dad is right. Your auto insurance is going to go through the roof. A lot of factors are going against you. First, you’re teenager, at least that’s what I can gather from what you said. Teenagers are more expensive to insure because auto insurance companies believe that teen drivers are not very careful drivers. They are still overwhelmed by the feeling of freedom that comes with driving his or her own car. Statistics further prove that teen drivers figure in accidents more often than adult motorists. You really can’t argue with statistics.

And also because of your age, it will be correctly assume that your driving experience is still limited. That is understandable since you’re young and just got your license. However, inexperienced drivers get high insurance premium rates because their driving instincts or road safety instincts are not so sharp yet.

And lastly, your 1970 Plymouth GTX 440 is working against you. Your baby is a muscle car. Even if you were not a teen driver, because of your car, you are bound to get a higher auto insurance premium. Your high-performance car fetches a high auto insurance premium rate precisely because it is a muscle car. Your car can roar and, good grief, we know there’s a big chance you’re going to roar, as well, in California.

Don’t get me wrong, your car rocks, but that’s gonna cost you.

Tags: auto insurance premium, high risk insurance, teen insurance

Reader’s Question:

I have a California driver’s license and received a speeding ticket while I was traveling in Wisconsin. Is an on-line course available that could help me remove the ticket from my record? By the way, the fine was already paid.

Lowe

Hayward, CA

Driver’s License Compact requires member state, which includes California, to inform the traffic violation of their licensed motorist that is received out of the state, to other state members. Not being a DLC member will not mean that the state of Wisconsin will not report to CA DMV of the speeding ticket you received.

Because you have paid the fine, it appears that you were already convicted of the violation for speeding. This information on violation will appear on your driving record. In this regard, no type of WI traffic school
or driving course can remove the ticket from your record. In CA, an out-of-the-state speeding violation is equivalent to 1 point.

An approval from the clerk of the court or another judicial officer to attend a traffic school in CA could be an option if you received the speeding ticket within the CA state’s county and not out of the state.

You can also contact the CA DMV to find out if there is another way to remove the points from your CA driver’s license.

Tags: auto insurance, car insurance, traffic school, traffic violation

Reader’s Question:

I just moved to Los Angeles, California from Texas. Is anyone aware of what the minimum insurance coverage is for automobile insurance? I have a compact car. Does that make a difference?

Casey

Los Angeles, CA

From what I know, every state in the United States has its own rules for the minimum coverage in vehicle insurance. Last time I checked, the state of California was using the 15/30/5 rule. Los Angeles, CA should be using this also. This would just mean that the law will require you to have a 15,000 minimum amount of liability for bodily injury to a person, with a maximum amount of 30,000. The 5 in the equation stands for the minimum 5,000 Property Damage Liability. Of course this is just the minimum requirements. You are more than welcome to get an insurance policy with higher payoffs just to make sure you have enough coverage. They are also using the tort system in this state. This simply means that somebody has to be found to be at fault in a situation. The party found to be at fault would then have to shell out the cash for whatever repairs, or payments will need to be made.

As to the type of vehicle, I do think that this is factored in when the insurance companies come up with a policy. You’re fortunate to be driving a compact car as this would generally have a lower premium compared to, say, a sports car or SUV.

Tags: auto insurance, auto insurance premium

Reader’s Question:

Am I required to purchase uninsured motorist coverage in Los Angeles California?

Francis

Los Angeles CA

No, you are not required to purchase uninsured motorist coverage in Los Angeles California. The state of California require car insurance providers to offer Uninsured and Underinsured (UM/UIM) coverages with every car insurance policy. Policyholders may choose to add it on their car insurance policy or reject the extra coverages.

In the state of California Uninsured and Underinsured (UM/UIM) coverages provide liability insurance when the driver at fault does not have the state required minimum liability coverage, or the minimum liability coverage is not enough to cover the injuries received in the accident. Uninsured motorist property damage covers possible reimbursement for damages your automobile sustains.

The minimum liability limits of car insurance in the state of California is $15,000 of bodily injury for injury or death per person up to $30,000 per accident and Property Damage of $5,000 for any one accident.

Tags: auto insurance, car insurance

Reader’s Question:

My daughter will be attending college in the state of Arizona. She has found a vehicle in Arizona that she would like to purchase. Can we keep the Arizona registration for her vehicle and still insure her under our insurance policy in Los Angeles CA?

Allen

Los Angeles, CA

You will have to change over to AZ auto insurance and not be able to put your daughter’s Arizona registered vehicle on your CA insurance policy.

Your insurance company in Los Angeles CA will not likely permit you to insure a vehicle that is registered, driven and garaged out of state with your daughter. Since she is a college student though your California insurance carrier may permit him and the vehicle to be on your insurance policy. Insurance carrier’s guidelines vary so you would have to verify with your insurance company to check what your insurance company’s guidelines permit for this kind of situation.

Even if your insurance company’s guidelines would permit you to insure a vehicle in Arizona for your daughter attending school, the fact that the vehicle is registered in AZ does not permit you to use out of state insurance to cover it.

Tags: automobile, car insurance, teen insurance