Auto insurance is a vital safeguard for anyone who owns and operates a vehicle. It provides financial protection against potential injuries and property damage resulting from accidents involving your car, truck, van, motorcycle, or other motor vehicles. This guide is designed to help you navigate the complexities of auto insurance, enabling you to compare policies effectively and make well-informed decisions when purchasing coverage. Understanding your auto insurance policy, a crucial legal document, is paramount.
Financial Responsibility | California Law | Glossary | Resources | File a Complaint
California’s Requirements for Auto Insurance and Financial Responsibility
California law mandates that all vehicle owners must demonstrate financial responsibility to cover potential damages or injuries they may cause. The most common and practical way to fulfill this legal obligation is by obtaining auto liability insurance. California Vehicle Code explicitly states that “All drivers and all owners of a motor vehicle shall at all times be able to establish financial responsibility and shall at all times carry in the vehicle evidence of the form of financial responsibility in effect for the vehicle.” Driving without auto liability insurance can lead to significant penalties, including fines, license suspension, and vehicle impoundment.
Decoding Your Auto Insurance Policy
Your auto insurance policy represents a binding contract between you and your insurance provider. It clearly outlines several key aspects of your coverage:
- Your Costs (Premiums): The amount you pay for your insurance coverage.
- Your Coverages: A detailed description of what your policy protects you against, such as liability, collision, and comprehensive damages.
- Your Exclusions: Specifies situations and circumstances that are NOT covered by your policy.
It’s crucial to thoroughly understand these components to ensure you have the right protection.
Smart Policy Comparison: Getting the Right Auto Insurance Quotes
Auto insurance policies are far from uniform, varying significantly in coverage and cost. Engage in open and detailed discussions about your insurance needs with your agent, broker, or insurance company representative. While they can offer valuable guidance, ultimately, the responsibility of selecting the insurance that best suits your individual circumstances rests with you. Always obtain multiple insurance quotes. A quote is an estimated cost of your premium. Comparing these quotes is essential before committing to a policy, ensuring you get the most competitive rates and coverage. When getting quotes, especially when considering repairs, a common question arises: do auto repair shops have to go off insurance quotes? We’ll explore this aspect further as we delve into repair costs and claims.
Understanding Your Policy Inside and Out
Familiarizing yourself with your auto policy before an incident occurs is essential. Read it carefully, paying close attention to the Declarations page, which provides a concise summary of your policy details.
- Clarify Doubts: Don’t hesitate to contact your agent, broker, or insurance company if any part of your policy is unclear.
- Stay Updated: Inform your agent, broker, or insurance company promptly if you sell or purchase a vehicle, or if there are new drivers in your household.
- Permissive Drivers: Review your policy before allowing others to drive your car. Some policies may exclude certain drivers, meaning accidents caused by excluded drivers might not be covered.
Your Rights as a Policyholder: The Good Driver Provision
California law includes a “Good Driver Provision” that benefits safe drivers. Every auto insurance company in California is mandated to offer coverage to individuals who qualify as “Good Drivers.” A Good Driver is defined as someone licensed for at least three consecutive years with no more than one point on their driving record. Crucially, insurance rates for Good Drivers must be at least 20% lower than the rates offered to non-Good Drivers by the same insurance company.
Policy Cancellation and Non-Renewal Protections
Once your auto insurance policy is active, there are strict limitations on when it can be canceled or non-renewed by the insurance company. California law permits cancellation or non-renewal only under three specific circumstances:
- Fraud or Material Misrepresentation: If you provided false information when applying for the policy.
- Non-Payment of Premium: Failure to pay your insurance premiums.
- Substantial Increase in Hazard: A significant change that increases the risk the insurance company is covering.
Auto Insurance Costs: Breaking Down the Premiums, Deductibles, and Limits
Understanding the cost components of your auto insurance is crucial for managing your budget and choosing the right coverage levels.
Premium Explained
A premium is the payment you make to the insurance company to purchase your auto policy. This payment covers the policy term, which can range from one month to a year. Many insurance companies offer installment payment options for premiums. Inquire about any additional fees associated with installment plans.
Deductibles: Your Out-of-Pocket Responsibility
Deductibles are applicable to certain types of coverage, such as collision and comprehensive. A deductible is the amount you are responsible for paying out-of-pocket towards a covered loss before your insurance coverage kicks in.
Choosing a higher deductible typically results in a lower premium, and vice versa.
Example: Imagine your Comprehensive coverage has a $500 deductible. If your car sustains $1,500 in damage from a hailstorm, you will pay the initial $500 deductible, and your Comprehensive coverage will cover the remaining $1,000.
Coverage Limits: Maximum Payouts
Each type of coverage within your auto policy has specific limits. The limit represents the maximum amount the insurance company will pay for a single accident or claim. The insurance company will not cover costs exceeding these limits.
Example: Suppose your auto liability coverage includes bodily injury limits of $50,000/$100,000 per accident. In this scenario, your insurance will pay a maximum of $50,000 for injuries to any single person in an accident you cause, and a total of $100,000 for all injuries in a single accident, regardless of the number of people injured.
Agent vs. Broker Fees: Understanding Who Gets Paid
Agents represent specific insurance companies and are compensated directly by these companies, not by you. If you choose to work with an insurance broker, you will typically pay a broker’s fee for their services.
Cost Variations Among Insurance Companies
Auto insurance costs are not standardized and can vary significantly, even within the same geographic area. When shopping for auto insurance, it’s imperative to compare both costs and coverage options from multiple insurance companies to find the best value.
Affordable Insurance Options: California’s Low Cost Program
For drivers struggling to afford auto insurance premiums, California offers a Low Cost Automobile Insurance Program for eligible, low-income drivers. For detailed information about this program and eligibility criteria, visit Home – California’s Low Cost Insurance (mylowcostauto.com) or call 1-866-602-8861.
Liability Coverage and California Law: Protecting Others on the Road
Liability coverage is a cornerstone of auto insurance, designed to protect you financially if you are responsible for causing injuries or damage to others in an accident. As a vehicle owner and driver in California, adhering to the state’s financial responsibility laws, primarily through liability coverage, is mandatory.
It’s important to understand that liability coverage does not cover injuries to yourself or members of your household. For medical expenses for yourself and household members, you can purchase separate medical payments coverage.
Minimum Liability Coverage Requirements in California ($30K/$60k/$15K)
California law sets minimum liability coverage limits that all standard auto policies must meet. These minimum limits are:
Minimum Bodily Injury Liability Limits:
- $30,000 for the death or injury of a single person. If one person is injured in an accident you cause, your liability coverage will pay up to $30,000 for their claims.
- $60,000 total for the death or injury of multiple people in a single accident. If two or more individuals are injured, the total coverage payout is capped at $60,000, to be shared among the injured parties.
- This coverage specifically applies to injuries you cause to others, not yourself or your passengers.
Minimum Property Damage Liability Limits:
- $15,000 for damage to the property of others.
- This coverage pays for damages you cause to another person’s vehicle or other property, such as fences, buildings, or objects struck by your car.
Mandatory Liability Coverage: Driving Legally and Responsibly
Purchasing and maintaining liability coverage is not optional; it’s a legal requirement. Driving without insurance is illegal in California. Furthermore, proof of liability coverage is necessary to register your vehicle with the Department of Motor Vehicles (DMV). Insurance companies are obligated to notify the California DMV when you purchase or cancel an auto insurance policy.
Consequences of Driving Without Liability Coverage
Failure to provide proof of insurance when requested by law enforcement will result in a traffic ticket. Driving without any insurance can lead to more severe repercussions, including license suspension and vehicle impoundment.
Proving Your Liability Coverage: The Insurance Proof Card
Your insurance company will issue you proof of insurance, typically in the form of an insurance card. This card lists the insured vehicles, the names of the policyholders, the policy number, and the policy’s effective and expiration dates. It is essential to keep this proof of insurance card in your vehicle at all times.
Financial Responsibility Beyond Your Liability Limits
If you cause an accident where the resulting damages exceed your chosen liability limits, you will be held personally responsible for covering the remaining costs.
Considering Higher Liability Limits: Protecting Your Assets
While the state mandates minimum liability coverage, you may want to consider purchasing higher limits for greater financial protection. Generally, individuals with more assets to protect should opt for higher liability coverage. Consult with your agent, broker, insurance company, or financial advisor to determine the appropriate liability limits for your specific situation.
Alternative Ways to Demonstrate Financial Responsibility
Besides purchasing auto insurance, California law allows for two alternative methods of demonstrating financial responsibility:
- Cash Deposit: Making a cash deposit of $35,000 with the Department of Motor Vehicles (DMV).
- Surety Bond: Obtaining a surety bond for $35,000 from a licensed insurance company in California.
Regardless of the method chosen, evidence of financial responsibility must be carried in the vehicle at all times. However, the vast majority of Californians fulfill this requirement by purchasing auto liability insurance from an authorized insurance company.
Exploring Other Essential Auto Insurance Coverages
Beyond liability coverage, a range of other coverage options are commonly available to enhance your auto insurance protection.
Uninsured Motorist Coverage (UMC) / Underinsured Motorist Coverage (UIM): Protection Against Negligent Drivers
This crucial coverage safeguards you if you are involved in an accident with a driver who either lacks liability insurance (uninsured) or has insufficient coverage to fully compensate for your damages (underinsured).
Insurance companies in California are legally obligated to offer you UMC/UIM coverage. If you decline this coverage, you must sign a waiver confirming that you were offered and refused it.
- Uninsured Motorist Bodily Injury (UMBI): Covers medical expenses for you and your passengers if injured in an accident caused by an uninsured driver who is at fault. UMBI coverage limits typically mirror your liability coverage limits.
- Underinsured Motorist (UIM): Provides financial assistance for bodily injury costs when you are in an accident with an at-fault driver whose insurance coverage is inadequate to cover your damages.
- Uninsured Motorist Property Damage (UMPD): Covers damage to your vehicle caused by an accident with an identified uninsured driver who is at fault. The coverage limit is typically $3,500. If you already have collision coverage, UMPD may be redundant.
Collision Deductible Waiver (CDW): Easing the Financial Burden of Uninsured Driver Accidents
CDW coverage pays for your collision deductible if your insured vehicle is damaged in an accident caused by an uninsured driver who is at fault.
Medical Payments Coverage: Immediate Medical Care, Regardless of Fault
Medical Payments coverage helps cover medical expenses for you and your passengers if injured in a car accident, irrespective of who was at fault. This coverage can provide immediate financial assistance for medical care following an accident.
- Minimum Coverage Limit: The minimum medical payments coverage you can purchase is typically $1,000 per injured person. Higher coverage limits are available.
Physical Damage Coverages: Comprehensive and Collision – Protecting Your Vehicle
- Collision Coverage: Protects your vehicle against damage resulting from a collision with another vehicle or object, such as a tree, rock, guardrail, or building.
- Comprehensive Coverage: Protects your vehicle from damage caused by events other than collisions. This includes incidents like fire, theft, vandalism, windstorms, floods, and falling objects. Comprehensive coverage generally excludes mechanical breakdowns, normal wear and tear, and routine maintenance.
Both Collision and Comprehensive coverage typically compensate you based on the market value of your vehicle at the time of the damage.
Endorsements: Customizing Your Policy
Endorsements, also known as riders, allow you to add specific coverages to your auto policy to meet your unique needs:
- Custom Equipment Coverage: Provides insurance for aftermarket equipment like custom wheels, navigation systems, and permanently installed upgrades.
- Towing and Road Service Coverage: Covers the costs of towing and roadside assistance if your vehicle breaks down.
- Rental Reimbursement Insurance: Helps pay for a rental car while your vehicle is being repaired after a covered accident.
- Business Use Coverage: Essential if you use your vehicle for business purposes, including driving for Transportation Network Companies (TNCs) like Uber or Lyft.
Vehicle Loans and Insurance Requirements
If you have a car loan, your lender will almost certainly require you to maintain auto insurance, particularly collision and comprehensive coverage, to protect their investment. If you fail to obtain insurance, the loan company may purchase it on your behalf and charge you for it, often at a higher cost than if you secured your own coverage.
It’s important to note that standard auto insurance does not pay off your car loan if your vehicle is totaled and its market value is less than the outstanding loan balance. For this specific protection, auto dealers and lenders may offer Guaranteed Auto Protection (GAP) insurance.
Coverage Summary: A Quick Overview of Your Protection
To simplify understanding, here’s a summary of the key auto insurance coverages:
Liability Coverage (Mandatory in California): Protects you when you are at fault in an accident.
- Bodily Injury Liability: Covers injuries you cause to others.
- Property Damage Liability: Covers property damage you cause to others’ vehicles or property.
Uninsured/Underinsured Motorist Coverage (Offered, but Waivable): Protects you when the other driver is at fault and lacks insurance or has insufficient insurance.
- Bodily Injury Coverage: Pays medical expenses for you and your passengers.
- Property Damage Coverage (UMPD): Pays for repairs to your car up to $3,500 (may be redundant if you have collision coverage).
- Collision Deductible Waiver (CDW): Pays your collision deductible in uninsured driver accidents.
Medical Payments Coverage (Optional): Pays limited medical expenses for occupants of your car, regardless of fault.
Physical Damage Coverage (Often Required by Lenders): Covers damage to your car.
- Collision: Damage from accidents with other vehicles or objects.
- Comprehensive: Damage from non-collision events like theft, fire, or vandalism.
Additional Coverages (Optional):
- Towing and Road Service.
- Rental Reimbursement: Pays for a rental car during covered repairs.
Smart Shopping for Auto Insurance: Comparison is Key
Auto insurance costs and coverage options are diverse. Always obtain and compare multiple insurance quotes before making a decision. A quote is simply an estimate of your premium.
An experienced insurance agent or broker can be invaluable in helping you assess your insurance needs, obtain quotes from various companies, compare policies side-by-side, and identify potential discounts. Keep detailed notes of all conversations and, if desired, bring a trusted family member or friend with you when discussing insurance options.
Steps for Effective Policy Comparison:
- Define Your Coverage Needs: Determine the types and levels of coverage you require (liability, collision, comprehensive, etc.).
- Request Written Quotes: Ask each insurance company or agent for a quote in writing to ensure accurate comparison.
- Compare Quotes Carefully: Analyze the quotes, paying attention to coverage details, deductibles, limits, and the total premium.
- Identify the Issuing Company: Confirm the full legal name of the insurance company that will underwrite each policy for verification and research purposes.
Strategies to Save Money on Your Auto Insurance:
- Multi-Car Discounts: Inquire about discounts for insuring multiple vehicles under the same policy.
- Mature/Good Driver Discounts: Ask about discounts for mature drivers or those with excellent driving records.
- Vehicle Feature Discounts: Explore discounts for vehicles equipped with safety features like airbags, anti-theft devices, or advanced driver-assistance systems.
- Payment Plan Options and Fees: Understand payment installment plans and any associated service fees.
- Higher Deductibles: Consider increasing your deductibles for comprehensive and collision coverage to lower your premium costs.
- Re-evaluate Coverage on Older Vehicles: For older, lower-value cars, assess whether comprehensive and/or collision coverage is still financially worthwhile.
- Uninsured Motorist Property Damage (UMPD): If you forgo collision coverage on an older vehicle, consider UMPD for protection against uninsured drivers.
Completing Your Auto Insurance Application: Providing Accurate Information
When applying for auto insurance, you will need to provide detailed information. The insurance company uses this data to assess your risk profile, determine insurability, and calculate your premium. Common information requested includes:
- Vehicle Usage: How you primarily use your car (business, commuting, family use).
- Annual Mileage: Estimated miles you drive per year.
- Vehicle Details: Year, make, model, and Vehicle Identification Numbers (VINs) for all vehicles in your household.
- Vehicle Value: Purchase price of your car(s).
- Loan/Lease Requirements: Insurance requirements if you have a car loan or lease.
- Driving History: Years of driving experience.
- Household Drivers: Names, ages, marital status, and driver’s license numbers for all drivers in your household.
- Driving Records: Accident history, insurance claims history, and traffic violation records (excluding parking tickets) for all household drivers.
- Motor Vehicle Report (MVR): Most insurers will obtain an MVR from the DMV, which is the official state record of your driving history, including accidents, violations, and license suspensions.
Pre-Signature Review: Protecting Yourself
- Thorough Review: Take ample time to carefully review your insurance application before signing it.
- Understand Everything: Do not sign any forms that you do not fully understand. Seek clarification from the agent or broker.
- Avoid Blank Forms: Never sign blank insurance forms.
- Request Copies: Obtain copies of all signed forms and documents for your records before leaving the agent’s, broker’s, or insurance company’s office.
Policy Review Upon Receipt: Ensuring Accuracy
Once you receive your new policy, review it meticulously. Verify that all information is accurate and that the coverage provided aligns with what you purchased. If you find any errors, contact the insurance company immediately to rectify them. Submit any change requests to your agent, broker, and/or insurance company in writing, and retain a copy for your records. Don’t hesitate to contact the insurance company directly to confirm that your agent or broker has indeed requested the desired coverage. Consider using “certified mail/return receipt requested” for written correspondence to ensure proof of delivery and receipt.
Working with Insurance Agents and Brokers: Choosing the Right Professional
In California, you have several avenues for purchasing auto insurance: directly from an insurance agent, through an independent broker, or directly from an insurance company. You can obtain insurance quotes online, by phone, or via mail.
- Licensing Requirement: All insurance agents and brokers in California must be licensed by the state to legally sell insurance.
- Agent Commissions: Agents are typically employees or representatives of specific insurance companies and earn commissions from the insurance company for policies sold.
- Broker Fees: Brokers are independent intermediaries who represent you, the client, and typically charge a separate broker’s fee for their services, in addition to any commissions they receive from insurance companies. Always inquire about the broker’s fee before signing any agreements. Broker fees are not legally regulated and may be negotiable.
- Payment Receipts: Always keep receipts for your premium payments, especially if paying in cash.
Selecting an Agent or Broker: Trust and Expertise
Choosing the right agent or broker is a crucial step in securing appropriate auto insurance. Consider factors such as trustworthiness and whether they prioritize your best interests.
You can find agents and brokers through local directories, online searches, or referrals from family, friends, neighbors, or colleagues. Ask potential agents or brokers:
- Policy Explanation: Did they thoroughly explain your policy in a way you understood?
- Responsiveness to Questions: Did they patiently and completely answer all your questions?
- Claim Handling Experience: How did they assist you when you had to file a claim in the past (if applicable)?
- Policy Review Frequency: How often do they proactively contact you to review and update your policy to ensure it still meets your needs?
License Verification: Ensuring Legitimate Representation
Verify that any agent or broker you consider is properly licensed to sell auto insurance in California. Use the CDI License Status Inquiry website and enter the agent’s or broker’s name. Alternatively, contact the California Department of Insurance directly at 1-800-927-4357 to check license status.
What to Do If You Have an Accident: Navigating the Claims Process
In the unfortunate event of a car accident, immediate action is crucial. Report the accident promptly to both law enforcement and your insurance company. The California Department of Insurance (CDI) offers a free brochure titled “So You’ve Had an Accident, What’s Next?” which provides step-by-step guidance on accident procedures.
Your insurance company will likely assign an adjuster to your case. The adjuster’s role is to investigate the accident, assess the damages, and evaluate your losses. If your vehicle requires repairs, the adjuster may recommend a specific auto body shop, or you generally have the right to choose your own repair shop. This brings us back to the question: do auto repair shops have to go off insurance quotes? While insurance companies provide estimates and may have preferred shops, you as the vehicle owner typically have the final say in choosing your repairer. Shops will often work with insurance adjusters to agree on repair costs, but they are not legally bound to strictly adhere to the initial insurance quote, especially if further damage is discovered during the repair process.
Comparative Negligence: When Both Drivers Share Fault
In many accidents, fault is not solely attributable to one driver. Comparative negligence principles are often applied, where responsibility for the accident is shared between drivers. Police reports, insurance company investigations, or court decisions determine the percentage of negligence assigned to each driver.
Health Insurance and Accident-Related Injuries
Typically, your health insurance will initially cover your immediate medical care after a car accident. However, your health insurance company will often attempt to recover these costs from your auto insurance or the at-fault driver’s auto insurance through a process called subrogation.
Accidents and Premium Increases: Surcharges
If you are not at fault in an accident, your insurance company should not increase your premium upon policy renewal. However, if you are determined to be at least 51% at fault for an accident, your premium may increase at renewal time. This premium increase is known as a surcharge.
California’s Low Cost Automobile Insurance Program (CLCA): Affordable Options for Low-Income Drivers
Recognizing the financial burden of mandatory auto liability insurance, California offers the Low Cost Automobile Insurance Program (CLCA) to assist income-eligible good drivers. Premiums for liability coverage under this program vary depending on the county of residence. Check the CLCA website for current rates.
- Lower Liability Limits: CLCA policies offer lower liability limits than standard policies, but they still meet California’s financial responsibility requirements. The limits are:
- $10,000 bodily injury or death per person.
- $20,000 bodily injury or death per accident.
- $3,000 property damage per accident.
- Income Eligibility: Your annual income must be at or below 250% of the federal poverty level.
- Vehicle Value Limit: Your car’s value must be $25,000 or less.
- Valid California Driver’s License: You must possess a valid California driver’s license (AB 60 licenses are accepted).
- Age Requirement: You must be at least 16 years old (applicants under 18 must be legally emancipated).
- Premium Adjustment for Young Drivers: Premiums are higher if there is a driver aged 19 to 24 in the household.
- Payment Plans: Seven payment plans are available, and no broker’s fee is charged.
For more detailed information and eligibility verification, visit Home – California’s Low Cost Insurance (mylowcostauto.com) or call 1-866-602-8861.
California Automobile Assigned Risk Plan (CAARP): Insurance for High-Risk Drivers
Drivers with a history of accidents or speeding tickets may struggle to find standard insurance coverage. If you are considered a high-risk driver, the California Automobile Assigned Risk Plan (CAARP) can provide liability insurance.
- Assigned Insurer: CAARP assigns you to an insurance company participating in the plan. All licensed auto insurance companies in California are required to participate in CAARP.
- Standard Premiums: All CAARP companies charge the same regulated premiums, and installment payment options are available.
- Transition to Standard Policies: After a period of time, traffic violations or accidents may be removed from your driving record, potentially enabling you to qualify for a standard, lower-cost auto insurance policy.
- No Broker’s Fee: No broker’s fee is charged when purchasing a CAARP policy.
For more information about CAARP, call 1-800-622-0954.
Glossary of Auto Insurance Terms
Adjuster: An insurance company representative who investigates and assesses damage and losses after an accident.
Agent: A licensed individual or organization authorized to sell and service insurance policies on behalf of an insurance company.
Binder: A temporary, short-term agreement providing immediate auto insurance coverage until a formal policy is issued.
Broker: A licensed individual or organization that sells and services insurance policies on your behalf, representing your interests.
Broker Fee Agreement: A contract outlining the fees charged by an insurance broker for their services.
Cancellation: The termination of an insurance policy, either by you or the insurance company, before the policy’s expiration date.
Claim: A formal request to an insurance company for coverage of a loss or accident.
Collision Coverage: Insurance that pays for damage to your car caused by colliding with another vehicle or object.
Commission: A fee paid by an insurance company to an agent or broker for selling a policy.
Comparative Negligence: The determination of fault in an accident where both drivers share responsibility, expressed as a percentage for each driver.
Comprehensive Coverage: Insurance that pays for damage to your car caused by non-collision events such as theft, fire, vandalism, or natural disasters.
Declarations Page: Typically the first page of an insurance policy, summarizing key information like coverage types, limits, deductibles, and insured vehicles.
Deductible: The amount you must pay out-of-pocket for a covered loss before your insurance coverage begins to pay.
Endorsement/Rider: A written amendment to an insurance policy that modifies coverage or policy details.
Exclusion: Specific circumstances, perils, individuals, property, or locations that are not covered or have limited coverage under an insurance policy.
Gap Coverage: Insurance that covers the difference between the market value of a new car and the outstanding loan or lease balance if the car is totaled.
Insured: The person or entity entitled to receive insurance benefits in case of a covered loss; also known as the policyholder.
Insurer: The insurance company that issues the insurance policy.
Liability Coverage: Insurance that helps pay for injuries and damages you cause to others in accidents for which you are at fault.
Limit: The maximum amount an insurance company will pay for a covered loss under a specific coverage.
Medical Payments Coverage: Insurance that covers limited medical expenses for you and your passengers injured in a car accident, regardless of fault.
Non-renewal: The decision by either you or the insurance company not to extend an insurance policy beyond its current term.
Policy: Your legally binding contract with the insurance company, outlining coverage terms, conditions, rights, and responsibilities.
Premium: The payment you make to purchase an insurance policy.
Private Passenger Automobile: Four-wheeled vehicles designed for use on public roads, such as cars, SUVs, and vans, registered with the state.
Quotation (Quote): An estimated premium cost for insurance coverage based on information provided to an agent, broker, or insurance company.
Rescission: The retroactive cancellation of an insurance policy back to its start date, often due to material misrepresentation or fraud by the policyholder.
Subrogation: The process by which an insurance company seeks reimbursement from another insurance company for claim payments made on behalf of its insured.
Surcharge: An additional charge added to an insurance premium, typically due to an at-fault accident or traffic violation by a covered driver.
Uninsured/Underinsured Motorist Coverage (UMC): Coverage that protects a policyholder if involved in an accident with a driver who lacks liability insurance or has insufficient coverage.
Resources for Auto Insurance Information and Assistance
California Automobile Assigned Risk Plan (CAARP)
Information for high-risk drivers seeking insurance.
1-800-622-0954
California Low Cost Automobile Insurance Program
Information for income-eligible good drivers seeking affordable insurance.
1-866-602-8861
Filing a Complaint or Request for Assistance with the California Department of Insurance
The California Department of Insurance (CDI) is dedicated to protecting consumer rights. Many insurance-related inquiries can be resolved through a phone call. If phone assistance is insufficient, you can file a formal Request for Assistance form online or by mail via the CDI website. The online system allows you to attach supporting documentation, such as policies, payment records, and correspondence. Examples of issues the CDI can assist with include:
- Improper Claim Denials
- Policy Cancellation or Non-renewal Disputes
- Unreasonable Delays in Claim Settlement
- Allegations of Premium Misappropriation
- Misrepresentation by Insurance Agents or Brokers
- Unfair Underwriting Practices
- Dishonest or Deceptive Sales Tactics
Contact the California Department of Insurance
Consumer Assistance Hotline:
1-800-927-4357
TTY 1-800-482-4833
Visit the Consumer Complaint Page on the CDI website.
To request additional informational materials, contact: Community Relations & Outreach [email protected]
