OAI: New Regulations Could Have Auto Insurance Price Implications

Sacramento, CA, December 26, 2011 --(PR.com)-- Online Auto Insurance reports that new changes to California vehicle coverage regulations could make the difference in whether drivers who have been involved in a vehicle crash are eligible for good-driver discounts.

The updated rules, which were announced last week by state regulators, could be of interest to Golden State residents looking for low down payment auto insurance or other coverage types and are hoping to take advantage of any price breaks for which they may be eligible.

Motorists who qualify for good-driver discounts can expect to pay 20 cents less on the dollar toward premiums—but that’s if they qualify.

Under the new rules, insurers can now disqualify motorists if they have been found to have been at least 51 percent at-fault in an accident that caused a total of bodily injury or $1,000 in property damage in the past three years. Previous regulations made drivers ineligible if they had caused crashes resulting in death or $750 in property damage to any one person in an accident, but they did not address bodily injury, and the total amount of property damage now includes all parties in the accident instead of just one.

The new regulations also make it so that insurers can submit evidence in practically any circumstance for review if they feel it indicates that a driver is largely at fault for an accident. Previously, there was a set of situations in which a driver was automatically determined to not be at fault, no matter what.

Source: http://www20.insurance.ca.gov/epubacc/REG/159931.htm

The rules only apply to accidents going forward, but those who are not eligible for the discount, industry experts say, can check on the many other discounts for which they may qualify, and you could be missing out if you don’t ask your agent or coverage provider about them.

According to the Insurance Information Institute (III), insurers commonly offer lower premiums to customers who bundle their auto and homeowner policies or have multiple vehicles covered through the same company.

Some companies will also offer price breaks to policyholders who have antitheft devices in their vehicles or who pass a defensive driving course. For consumers with young motorists on their policies, some providers will cut rates for students with good grades or who successfully complete driver education courses.

And because statistics show that drivers who log more miles tend to be at greater risk of being involved in a crash, most insurers offer some sort of discount to policyholders who have low annual mileage.

To learn more about this and other car insurance issues, readers can go to http://www.onlineautoinsurance.com/pay-monthly/car-insurance-no-down-payment/ where they will find informative resource pages and a rate-comparison generator that can help users quickly evaluate their coverage options.

Online Auto Insurance
Gregor McGavin