How Does Low Cost Auto Insurance in California (CLCA) Work?

California, like most states, is proud to offer a low cost auto insurance alternative to its drivers. The program, formally known as the California Low Cost Automobile Insurance Program, or CLCA, is designed to give drivers with a low income the opportunity to find and purchase affordable coverage. What CLCA Covers Don’t confuse the CLCA […]

4 Bits of Auto Insurance Advice That Will Land You in Prison


Auto insurance fraud is a crime, and so is attempting to bend the law in your favor. Lots of people have tried it and only a few succeeded. When someone tips you on a “surefire” way to save some money with car insurance, ask yourself if it’s legal or not. Consult with a lawyer if […]

6 Auto Insurance Myths Most People Think are True Car Insurance Images

Auto insurance is mandatory in most states across the country. All motorists know they have to get at least some minimum coverage, but a lot of people live with some misconceptions. This article will debunk six common myths about auto insurance. 1. If my financed car is totaled, the insurance company will pay off what […]

How Much Does Auto Insurance Cost for a New Driver?


There really is no “typical” cost of insurance for a new driver, as there are lots of factors that influence the price. The premium the insurance carrier is going to charge you is built on a “base rate” adjusted with your score related to age, gender, the car you are driving, your driving record and […]

How Does an Auto Insurance Claim Work?


The claims process is, in most cases, quite simple. Most insurance carriers understand that time is money, so they did their best to streamline the process as much as possible. They try to get as little involvement from their customers as possible. How does an insurance company settle a claim? Most insurance claims are pretty […]

How Long Does Auto Insurance Last?

calender for auto insurance

Short answer: for as long as you make the payments! Long answer: industry practices say contracts are drawn yearly. Bi-yearly plans are also available, but they cost a bit more (it’s not uncommon to be billed as much as 20% more per year if you choose two bi-yearly payments). Some companies offer monthly plans and […]

What is the Auto Insurance Grace Period?

black stamp question mark

The grace period is an extra period of time by which a policy is extended even if you haven’t formally renewed it. Insurers understand that many of their customers are busy people and leave payments up to the last moment. And when not everything goes as planned, they may end up with their insurances lapsed […]

What is an Auto Insurance Binder?


An auto insurance binder is a temporary coverage with immediate effect and a very restricted time span. When you apply for a new policy, you won’t get it immediately. The insurer has to go through the so-called underwriting process where they analyze your credentials and decide whether or not to insure you and, if so, […]

How Does a Car Insurance Company Make Money?

big insurance sick of it sign

A car insurance company typically makes money by selling the mandatory policy and the additional types of coverage. Most American states require some minimum form of auto insurance. Insurance companies don’t make a lot of money off selling liability coverage, as the competition is harsh (everybody sells the minimum insurance these days), prices are low […]

Why and How Are Policies Priced for Different Drivers?

people discussing inside office

It may seem awkward for the unadvised that two drivers can pay different premiums for the same coverage and very similar vehicles. In fact, prices may vary by as much as a few hundred dollars for a liability policy that costs less than $1,500 per year. No, the insurance carrier isn’t ripping you off (nor […]

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