A friend of mine had a vehicle accident and thank goodness he didn’t suffer that many injuries. Will his insurer here in Los Angeles increase his vehicle insurance rate because of that single accident? If his vehicle is totaled, how will his insurer pay him?

Lina

Los Angeles, CA

You failed to mention whether or not your friend’s accident was his fault because the basis of the increase of his vehicle insurance rate would depend on that. However, should he file a vehicle insurance claim, there’s no universal law that says the vehicle insurance rate would increase right away. But a number of vehicle insurance carriers would keep a file of a collision claim on the policyholder’s insurance history and increase the vehicle insurance rate.

For insurance claims that are chargeable or regarded as at-fault accident, the increase on the vehicle insurance rate would remain for about three years after the policyholder filed the claim. In the event that the accident was completely the fault of the other driver, there is no reason for a vehicle insurance rate to increase. That would be the same thing that insurance agents will tell you – the vehicle insurance rate won’t go up if you are not the one who caused the accident.

In case that his vehicle is totaled, its value would be based on the Kelley Blue Book that gives depreciated value of used as well as new vehicles. He can get in touch with his vehicle insurance company in Los Angeles to determine the value of his vehicle for insurance purposes.

I’m really concerned about my car insurance after being charged with DUI here in LA California. I heard that some of the traffic laws in California have changed. How would my insurance company deal with my DUI case?

Maxine

Los Angeles, CA

Under the California law, any DUI offense on your record will appear for 10 years from the violation date. This may sound unfortunate for you. Several insurance companies check your motor vehicle record only once every three years or when you’re applying for a new policy.
At times, DUI conviction can escape your insurer’s attention or don’t end up on your motor vehicle record. But if your insurer finds out about your DUI in California, you are likely to have higher rates and possibly policy cancellation or non-renewal.

You asked how your insurance company would deal with your DUI case. Well, in general, there are two ways insurance companies deal with customers with DUI conviction. First is that they may raise your car insurance premiums and label you a high-risk driver if it finds out you have been convicted of DUI. Second and worse is that they may cancel your insurance mid-term or terminate the policy at the end of the term because of your DUI conviction. If this happens, you may shop around to get lower rates for your insurance policy.