Commercial Car Insurance Policy in California
Reader’s Question:
My sister and I have put up a travel agency here in California. I sometimes use my car to drive around clients. If I get into an accident with my clients onboard, will my car insurance pay for the damages?
Shelly
San Diego, CA
Since you are obviously using your car to transport passengers that pay you with a certain fee, then your car is considered to be used for business purposes. Whether this transporting of clients is done occasionally or on a daily basis, your car can be under the category of livery use. It means that the car is used to transport or carry passengers in exchange for a fee. It can also mean using the car to deliver packages like pizza or newspapers in exchange for a payment or tip. This type of vehicle use is definitely excluded from your personal passenger car insurance policy. In your case, you will have to purchase a commercial car insurance policy. Although it may cost more than your regular car insurance coverage, it will be a very sound business investment. You would not want to end up in a road accident with injured clients and no financial assistance for necessary medical care, would you?
Talk to a local car insurance agent in California about this matter. You can also check the websites of car insurance companies licensed to do business in California and do some comparison shopping. This way you know all your options and have a higher chance of getting competitive rates.
18 Year Old Teen Driver Insurance in Washington
Reader’s Question:
I am only 18 years old and I am just wondering what is the best insurance plan to go with if you are a teenager and you are just about to get your drivers license in Washington?
Tom
Vancouver, WA
Almost every state including the state of Washington requires you to purchase a minimum amount of liability coverage. Chances are that you will need more liability insurance than the state requires since accidents cost more than the minimum amount limits. If you are found legally responsible for damages that are more than your auto insurance insurance policy covers, you will have to pay the difference out of your own pocket. These bills could wipe you out! You must consider how much you stand to lose or have the potential to lose (as you are still young). You may want to purchase as much coverage as you feel comfortable with and a car insurance coverage that you can afford.
What Are Car Insurance Points?
Reader’s Question:
What are these car insurance points and how do you acquire them?
Wallace
Columbus, GA
Insurance points are used to evaluate the eligibility for car insurance coverage and to determine insurance rates. These points are assigned by your individual insurance provider and each has their own type of point system. The system will differ but many insurance companies use the system based on the rules and guidelines set up by the Insurance Services Office (ISO).
Either using the ISO system or their own created system; insurance carriers assign a value (point) to various vehicle violations, such as an accident, DUI or traffic violation. The point value will increase depending on the seriousness of the violation. As you accumulate more “insurance points” as a motorist the likelihood that your insurance premium rates will increase.
If you would like to know the specifics of your insurance company’s rating system, since all carriers vary in the exact variables they use, you can contact your state’s insurance regulatory body. All insurance providers must file their insurance rates with this entity.
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