The Insurance Family Blog

In California, auto insurance liability is a must, and is mandatory due to state financial liability laws. Anybody who owns and operates a road vehicle must take out auto insurance to ensure they will be able to cover minimum liability costs should an accident or incident take place on California roads. Since taking out auto insurance is unavoidable for most people, there is a lot of competition and we know that people shop around. But do you really understand what factors go into determining the premium of your auto insurance? The top five factors that affect your auto insurance premium are as follows: 

Did you know that being a Californian on the open road today comes with a lot of inherent risks? Perhaps you are aware of the obvious risks but there are other risks most people don’t ever think about. In the year 2009 alone, motor vehicle fatalities in California totaled 3,081. Not to forget the severe injuries and permanent damage suffered by tens of thousands of people every year.

For a safe and happy summer’s motoring in California, make sure to buckle up! While California auto insurance protects you financially, seat belts will protect you and your family physically. In addition, California law actually requires drivers of vehicles and all passengers to use a “safety restraint system” (or seatbelt) while traveling in an automobile. 

One of the top risks to an automotive business is fire so it is essential that your business is both prepared for and protected against such hazards. Fires in an auto shop can start from very small sources but can rapidly become raging infernos – causing extensive damage to your property as well as your finances. Implementing effective fire prevention rules will help reduce risks but will that help rebuild your business?

We all need to cut our cloth more tightly in these tough economic times. When it comes to reducing costs within your business, the first thing you need to look at is reducing the insurance risk. Unfortunately in an industry that deals with cars, those risks tend to be high stakes, and provide the potential for high losses. 

Uninsured Motorists insurance is an important coverage that is typically included in an auto insurance policy but is rarely talked about.   When you purchased your auto insurance you probably discussed your liability limits and what comprehensive and collision deductible you wanted to include on your policy.   But what about Uninsured Motorist insurance?  How did you determine your limit? 

There are many factors that help reduce your auto insurance rates.  The 2 that we are all most aware of is the number of years you have been driving, and your driving record - how many tickets and accidents have you had in the past 3 years.  But there are other factors that affect your rate.  Some within your control and some that are not.  Following are some additional factors that can help you save money on your auto insurance:

• Deductible for comprehensive and collision.  Policies are typically written with deductibles ranging between $100 to $1,000.  Higher deductibles are available.  Naturally, the higher the deductible the higher your discount.  Just be sure not to pick a deductible that is more than you can afford to pay if you have an accident.  Remember, if you have a $1,000 deductible and have a collision claim, you will be responsible to pay the first $1,000 before the insurance company pays anything.
• Multi-policy discounts.  This can be a BIG discount.  Our companies offer between 10% - 25%.  Sometimes the discount on the auto is enough to pay for your homeowners insurance.   Call us and we can work up a quote to include this discount.
• Car alarms.  A car alarm typically only reduces your comprehensive coverage because theft is included in this coverage.  The discount varies by company.  If you have an alarm be sure to check and see if this discount is included in your rate.
• Occupational Discounts.  Many companies offer discounts for certain professions, degrees and even for employees of certain large companies.  For example, we work with Civil Service Employees Insurance Group (CSE) and they offer special discounts for all government employees.  Travelers offers you a discount if you are an engineer, scientist, educator, doctors, dentists and CPA’s.   Be sure your agent checks to see if you qualify for any of these discounts.  When your policy is first written you should receive all of your qualifying discounts but over the years you might change professions and companies add discounts that they offer.
• Good Student Discount.  Most companies offer a discount for full time students with a B average or better.
• Car pooling.  If you are in a car pool, be sure that your agent knows.  Many companies determine your rate by how far you drive to work and how many days a week.  If you car pool and only drive 50% of the time and you work 5 days a week, your rate will be based on 2.5 days per week instead of 5. 
• Type of Car.  The type of car you drive can also have a big impact on your insurance.  The rate is based on the value of your car and whether or not it is a standard performance, high performance or sports car and a variety of other factors.  If you are planning on buying a new car give us a call first and we can work up a variety of quotes for you based on the cars you are considering.

At Sutherland-Scherff Insurance Services we are constantly reviewing our client’s policies to be sure they are receiving the best rate we can offer.  Most times you won’t even be aware we are shopping your policy for you.  But then there is the time we call you to say “Don’t pay that renewal premium you just received.  We can save you money on your auto insurance if we change companies for you.”  

With Halloween just barely behind us and an array of holidays ahead, Insurance Journal released some startling statistics regarding seasonal California auto insurance claims.

Statistics show that the number of people in California hit by cars jumps 25 percent on Halloween versus the rest of October. Insurers looked at claims involving pedestrians and found a significant increase in autumn accidents specifically around trick-or-treat time. Being that Halloween was on a weekend this year, the fear was that potentially even more children and cars would be on the road than usual. With already heightened claims filed due to texting, insurers warned clients, that whether they would be walking or driving with children, to be alert and refrain from distractions like their keypads.

Even though Halloween typically causes a scary spike in car-pedestrian collisions, it’s pertinent for individuals to keep an eye on the road during the upcoming holiday season. The combination of alcohol, family, and festivities all play a major role regarding the increase in auto accidents; thus leading to a major need for appropriate coverage. In addition to the fact that this is the season that most people are driving not only across the state, but in some regards across the country, to celebrate with family and friends, it’s no wonder the potential for accidents has always been huge.

Thanksgiving tends to an extremely busy time resulting in more vehicles are on the road than usual. However, December 10th still remains the most dangerous day of the year on record for Californians on foot near traffic.

According to Insurance Journal, California has just under a $2 trillion thanks in part to a multi-billion dollar boost from the property/casualty insurance industry.

The California insurance report, written by the Insurance Information Institute and available on the Insurance Information Network of California Web site, found that:

• California employs more insurance professionals than any other state. Property and casualty insurers provided 297,431 California jobs in 2008, or more than 10 percent of the nation's insurance workforce. California insurance jobs accounted for $20.7 billion in compensation. In the previous year's report of 2007 data, P/C insurers provided approximately 300,000 jobs in the state, accounting for $21.4 billion in compensation.
• In 2009, property and casualty insurance claims payments totaled $28.7 billion in California, while life insurance claims and benefits payouts in California totaled almost $41.8 billion. P/C claims payments totaled $30.7 in 2007.
• California collected $2.05 billion in premium taxes from insurers in 2009, nearly double that of the next leading state. In 2007, California collected $2.2 billion in premium taxes, nearly 15 percent of the national total.
• There are more Auto Insurance Policies in California than in any other part of the country.

The California Department of Motor Vehicles (DMV) has announced they will start issuing a newly designed license said to be more secure. The design will be new for both California driver’s licenses and ID cards. The new cards will have security features, along with a different look and feel.

"The new security features, coupled with advanced technology, make California driver licenses and identification cards one of the most secure identification documents in the country," said DMV Director George Valverde. "We are confident that they will be well-received by residents, businesses and law enforcement officials."

The new cards are equipped with the latest in document security technology and have several features to protect them against tampering, fraud, and counterfeiting.

The same information as on a previous license or ID card will be printed but the new card will have easier readability. Some of the new features include:

- A vertical layout for persons under 21

- The cardholder's date of birth and signatures that can be felt by touch

- Images that can be seen only with the use of ultraviolet lights

- A 2D bar code on the back of the card that replicates and verifies only the information on the front of the card (similar to the current magnetic stripe)

- Laser perforation outline of the California Brown Bear, which can be seen from the front of the card when a flashlight is pressed against the back of the card.

For more information on the new driver license and ID card view the California DMV website. For your Los Angeles Auto Insurance needs check with Sutherland-Scherff for a policy quote.