Important Concepts

Eligibility:

Eligible types are a private passenger auto and a pickup or van that has a Gross Vehicle Weight of less than 10,000 pounds and is not used for work. The eligible vehicle may either be owned by the insured or long-term leased for a period of six month or more.

Insured:

To insure the vehicle under a Personal Auto Policy, the vehicle must be registered under a person’s name; not all insurance companies accept vehicles under a corporation’s name under a Personal Auto Policy.

For some companies the insured must be registered owner(s) of the vehicle, and the policy cannot be written under one of the driver’s name.

Rating:

Determined by the address (zip code) where the vehicle is garaged.

If there is more than one vehicle on the policy, they can be rated in different territories depending on the garage address. i.e.: Students away to college.

Driver Classification:

The age, sex, and marital status of the operators, and how much they drive the vehicle(s) determine the driver classification.

Rates are highest when the principal operator is a youthful unmarried male and lowest when they are no youthful operators.

All drivers of the household have to be listed on the policy and are considered to rate it; or they can be excluded, but a premium will be charged.

Driving Record:

Points are assigned for at fault accidents and major (serious) traffic violations during a prior three year period. Points are counted different then in the Driver License.

Drivers with their License Under Suspension are not acceptable by some companies, and a License with Suspension (already Reinstated) are also considered to determine the premium of the policy. They lose the entire safe driver discount.