Auto Insurance Record in California

About

Hey I’m Todd Spencer, a very active blogger and car insurance consultant in the LA area. I believe that auto insurance should be more than an after thought. That’s why I write so much about how to avoid paying too much for you insurance. Be sure to get a quote now so you can start saving a ton of money on your car insurance.

While filling up my FAQ, I came across this question : If I got into an accident, how long would it stay on my insurance record?

This got me thinking and I eventually decided to write up this article about how insurance companies in California handle your records.  Anytime you are found to be at fault in an accident and a police report is involved, the DMV will be informed.  For the next 3 years, the incident will be on your MVR (Motor Vehicle Record).  If you, or anyone in the accident had more than $750 in damages or if anyone was injured (or died), that will also be included in the report.

In California, at fault accidents are assigned one point and all relevant information will be written down in your record.  When requesting a quote, insurance companies WILL see this information and it WILL affect the rates they are going to make you pay.  This happens for NEW polices, RENEWALS or when trying to make changes.

While the DMV keeps this information for only 3 years, insurance companies have their own database of clients whom have claims related to accidents.  This database is called the Comprehensive Loss Underwriting Exchange (C.L.U.E) and is used by most insurance companies to research your past claims and driving history.  Your past, no matter how long ago you had a claim, follows you and your rates are adjusted according to them.

You can always contact the California Department of Insurance to find out if the state allows companies to charge higher rates due to your driving record.

What are Points and how do they affect your Rates?

Each incident or infraction you get is awarded a point value.  Points may be awarded for parking tickets, speeding, at-fault accidents, DUIs, etc.  These points accumulate over time and worsen your record.  Companies take into account your Points score and adjust your rates according to the score.  I can’t give you exact rates because each company has their own algorithms for determing how much they should charge according to your points record.  I’ve put up a simple table to show you how most companies award points :

Description Points 1stOccurrence Points 2nd Occurrence Points Each Additional Occurrence
At-fault Accident

2

3

2

Driving Under the Influence

1

2

3

No Charge Violation

0

0

0

Major Violation

4

4

4

Minor Violation

2

1

1

Not-at-fault Accident

0

0

0

Speeding

3

2

2

If you want to find out more, each companies rates are publicly filed with the California Department of Insurance. You can find out how they calculate their point values in accordance with the rates they charge you.  In some cases, a single accident can increase your rates by 28% or more.  So if you’ve had an at-fault incident in the past, be sure to shop around to see whom would charge you less despite your less-than-perfect driving record.

Whats my CLUE report and can I see it?

Your CLUE report is used by insurance companies to share information between companies.  Its a registered trademark of LexisNexis Risk Solutions whom acquired the rights from ChoicePoint in 2008.

Luckily, you are entitled to receive one free CLUE auto and a CLUE Personal Property report every 12 months (thank you Fair and Accurate Credit Transaction Act).  To get your report, go to the LexisNexis site and you can view it online.  Currently, they are the only authorized company to provide you with that report.  There are some sites that will charge you a fee to access the report.  Avoid them at all costs as they are fraudulent.

I hope this has helped.  If you have any further questions, please consult our FAQ or visit our Car Insurance Agent Directory to talk to someone in your area.  Also, feel free to use our instant quote tool by entering your zip code above to get multiple quotes from insurance companies in your area.  It takes 30 seconds and you could save more than %50 on your premiums.

You’re not alone

See, even in Canada people are looking for affordable car insurance. Be sure to get quotes from as many companies as you can right now so that you can stop paying high premiums.

Enjoy the video :


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