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.

My husband was recently convicted of a DUI in Los Angeles, California for the first time. He has had a perfect driving record for 53 years. He wants to know if he should write his insurance company in LA with an explanation of the circumstances before they learn of the conviction. Thanks.

May

Los Angeles , CA

It must be a very bad time for you and your husband knowing that he has had a perfect driving record for 53 years. My suggestion is that he may want to explain his California DUI conviction only if his insurance company finds out about it. In general, insurance companies check motor vehicle records on their policyholders about every three years. His DUI conviction might go unnoticed.

On the other hand, if his Los Angeles insurance company notices his DUI, there’s no guarantee that it would raise his insurance rates or cancel his policy. Rules may differ by insurance company. Most insurers say that generally, they look at a policyholder’s total driving record and claims history when considering what penalty, if there would be any, they will assess for a DUI conviction.