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.