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California Car Insurance
According to California law, every owner and driver of a car must maintain financial responsibility for accidents. There are four ways to prove your financial responsibility: 1) coverage by an automobile or motor vehicle insurance policy; 2) a deposit of $35,000 with the Department of Motor Vehicles (DMV); 3) a surety bond of $35,000 obtained from a company licensed to do business in California; 4) DMV-approved self-insurance.
Obtaining an Insurance Policy
Insurance in the Bay Area is relatively expensive. There are three types of policies that insurance brokers may offer: preferred, standard, and assigned risk. Each type of policy will vary in price. Assigned risk is the most expensive and offers the least amount of coverage. You must qualify for the preferred policies. Preferred policies are reserved for California residents with a "clean" driving record dating back at least three years. Since most international drivers have little or no U.S driving experience, it is difficult for an international visitor, scholar or student to obtain a preferred policy. Unfortunately, most brokers tend to put international visitors in the assigned risk category. Due to this fact, most international scholars, students and visitors purchase auto insurance through California Casualty Auto Insurance (see below).
Insurance coverage
There are many different types of auto insurance you can obtain, offering a range of coverage. The minimum level of insurance coverage required by law is liability.
Liability coverage pays the amount (sometimes with certain limitations) for which you're legally responsible if you should injure someone or damage property while driving. All other types of coverage are optional.
Uninsured motorist coverage protects you and your passengers financially if you're injured by an uninsured or hit-and-run driver (if the driver is liable due to negligent behavior).
Collision coverage pays for damages to your automobile from a collision or single car accident. Liability of a given party need not be proven.
Comprehensive coverage pays for financial loss if your car is stolen, damaged by a natural disaster, vandalism or other non-collision causes.
California Casualty Auto Insurance
California Casualty and the University of California have a contract that benefits visiting scholars and post-doctoral fellows greatly. Most car insurance companies do not offer car insurance to drivers with no US driving experience. California Casualty also offers car insurance to University employees without a CA driver’s license (only an international or country license). They guarantee a 12 month rate. That means that they will not change your insurance rate for a whole year, even if you get in an accident. Most companies have a month-to-month rate or 6 month guaranteed rate. If you do not have experience driving in the US, your insurance will be higher than the average.
However, if you have more than one car, you will receive a multiple-car discount. That means that the insurance for two cars in the same household will be cheaper than two separate policies. UC/lab employees can also sign up for a payroll reduction service (automatically pays for your insurance as a deduction from your paycheck before you receive it). There is no charge to cancel your policy before the contract is up, you will be refunded the difference.
Some insurance fee generalities:
* Newer cars are more expensive to insure than older cars
* The less you drive, the less your rate will be
* Many factors contribute to the actual cost of your policy- commute distance, yearly mileage, year, make and color of car, age of driver(s), number of accidents/moving violation tickets, "good driver law"*
* Cars newer than 1989 models will generally carry comprehensive and collision insurance
* Cars older than 1989 models generally will not carry comprehensive and collision insurance
*The good driver law of California states that if you have 3 years or more of accident/ticket free driving in the US and have been in CA for 18 months or more, you're entitled to a discount on your insurance rate.
The following sample rates are fictional examples. They do not reflect the actual cost of insurance. Your individual policy rate will vary according to the many factors listed above. Your rate may be higher or lower, depending on many things.
Mr. John Doe
* Born: January 1, 1965
* Non-US citizen
* no US driving experience
* owns: 1995 Honda Accord (4-door sedan)
* commute (to work): averages 5 miles per work day
* average yearly mileage: about 10,000 miles
* the sample yearly insurance rate*: $1,699
*insurance includes:
bodily injury ($3060) required
property damage ($2500) required
uninsured motorist ($3060) optional
comprehensive (fire, theft, flood) $3000 optional
collision ($500) optional
The monetary values listed here represent the maximum amount of coverage that Mr. John Doe has selected. In the case of an accident or theft, these numbers are the maximum amount of money that Mr. Doe can collect for each type of damage incurred. He can opt for less coverage and pay less money.
The optional insurance that Mr. Doe receives for his 1995 Honda is typical for cars newer than 1989. They are worth more than other cars, and it is common to protect them more.
If Mr. Doe buys a 1985 Honda Accord instead, his insurance rates will be much lower.
* Owns: 1985 Honda Accord
* commute: same
* yearly mileage: same
* sample yearly insurance rate*: $883
*insurance includes:
bodily injury ($3060) required
property damage ($2500) required
In addition, if Mr. Doe reduces his yearly mileage (by commuting only every other day) to 8,000 miles per year, his rates will decrease by the following amounts (in our fictional example):
1995 Honda Accord
yearly mileage: 8,000 miles/yr
rate: $1504 per year
1985 Honda Accord
yearly mileage: 8,000 miles/yr
rate: $788 per year
How to get in touch with California Casualty Auto Insurance:
* For all sales, rate, policy, claim or general questions call: 1-800-800-9410
* For a skilled representative familiar with the lab and UCB, press extension 822, for Jane.
Local Insurance Companies
Generally, if you're looking for insurance and have no US driving experience, you will be referred to California Casualty Auto Insurance. California Casualty has a contract with the University that allows them to give inexperienced drivers lower rates and better options than most other insurance companies. If, however, you find that California Casualty is not what you desire, the following list may help you find an alternative insurance company.
Farmers Insurance
The Farmers Insurance group operates two separate companies: Farmers for preferred policies and Mid-Century for standard policies and those under twenty-five years of age. The preferred rate requires at least three years with a California (or other U.S. state) driver’s license, continuous liability insurance for the last 12 months and a good driving record. The Mid-Century standard rate requires an international or California driver’s license. Fees (for both) are based on age and number of past accidents and moving violations. There is a "good student" discount of 25% for full-time registered students with at least a 3.0 average. Transcripts are required.
* Berkeley agent: Ed Molishever
1600 Shattuck Avenue, 843-5023 or
367 Colusa Avenue, 527-4640
State Farm Insurance
The standard rate is available to international or California driver’s license holders who have been licensed for three years with no moving violations or accidents. Assigned risk policies are available. Moving violations and accidents will affect the rates given. A "good student" discount is given to full-time students under 25 years old, who have a 3.0 grade point average and who have been licensed for 18 months or more. There are over ten State Farm agents in Berkeley. Check the Yellow Pages for the one nearest you.
California State Automobile Association (CSAA/AAA)
A California driver’s license is required. You must prove that you have had a driver’s license for at least three years prior to obtaining insurance (if you're new to the U.S.) If you have been in the country, you must prove you have had another state’s license for at least 18 months. CSAA/AAA offers for a fee (for drivers and non-drivers alike) a travel service, complimentary maps, free emergency road-side service and towing.
Berkeley District Office: open 8:30am-5pm
1775 University Avenue, 845-8890
GEICO-Government Insurance Company
Policies are available to any international student or scholar who has had a driver’s license for at least three years. 18 months of driving experience is required. A preferred policy rate is available for experienced drivers.
Information hot-line: 1-800-841-3000
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