No proof of insurance can result in getting towed

Q: Riverside resident Charles Kolb said he believes that if a driver is stopped by police in California and cannot show proof of car insurance, the driver gets a ticket -- but the vehicle won't be towed.

"The state and police departments will say California is a compulsory insurance state," Kolb wrote in an e-mail. "Not true. Compulsory means two things: mandated and enforced ... No other state that I know of says they are 'compulsory,' yet allows (uninsured people) to continue to drive."

A: California Highway Patrol spokesman Mario Lopez replied that an officer can "issue a citation to a driver who fails to provide evidence of financial responsibility in accordance with California vehicle code section 16028(a)."

In effect, that section requires drivers to provide proof of insurance on the spot if an officer asks for it.

Section 16029 explains the penalties (fines) for not being able to show proof of financial responsibility, but it also allows courts to impound a car in addition to levying a fine, Lopez said.

Q: Mike Novak-Smith, a Moreno Valley real estate broker, e-mailed to ask, "How much driving experience does a 16-year-old driver need to have before the newly licensed driver can drive non-family members under the age of 18?" He said he has heard varying opinions on the issue.

A: Like other states, California has a graduated licensing program. The idea is to grant teenage drivers -- who get into more traffic collisions than any other age group -- privileges that increase over time.

Youths can obtain a learner's permit at age 15½. It allows practice driving, driving only with a parent or guardian, an instructor or another adult at least 25 years old who has a valid California license. The teen must get 50 hours of this practice driving, at least 10 of them at night, and must take at least six hours of a driver-training class.

Teens should be aware that the state has a zero-tolerance policy on teen drinking and driving, and also bans drivers younger than 18 from using any electronic device while driving. That means cell phones, laptops, pagers, texting devices, etc.

At 16, a youth who has passed the state's driving test can get a provisional license. For the first 12 months of that license, or until the driver turns 18, they cannot carry passengers younger than 20 unless accompanied by a licensed driver who is at least 25. For the same time period, the new driver must be accompanied by a driver at least 25 years old if driving between 11 p.m. and 5 a.m.

There are exceptions to this nighttime-driving ban. The Department of Motor Vehicles' website has details on this rule and provisional licenses in general:http://www.dmv.ca.gov/dl/dl_info.htm#PERMINOR .

After the 12-month provisional license, the teen gets a full-privilege license, one that is free of time or passenger restrictions, assuming he or she hasn't earned any DMV- or court-ordered restrictions or suspensions.

Of course, this is what state law allows. Ultimately parents must decide for themselves, after their teen has satisfied the state's legal requirements, whether that youth is a mature and safe enough driver to ferry young passengers.

WI Car Insurance Roll-Back on Fast Track

If Republicans in the Wisconsin Legislature have their way, big changes are on the way when it comes to auto insurance. The state Senate has already passed a measure that rolls back reforms enacted in 2009, and the Assembly could take up the matter as early as this week.

Those opposed to the rollback say one provision that hurts consumers is the so-called "reducing clause." They say it would allow insurers to insert fine print into complex auto insurance policies to limit total coverage when two or more policies are involved.

Daniel Plumb testified at a hearing on the matter. He says the elimination of the reducing clause saved his father from bankruptcy after he was hit in Sheboygan County while riding his motorcycle. Had the rollback been in place, Plumb says his father would have only collected a fraction of his medical expenses.

"He has over $1 million in medical bills. He would have only been able to collect $250,000 from the gentleman who ran into him with his truck."

The Property Casualty Insurers Association of America says the rollback will lead to lower costs for consumers. However, Plumb says policies with the reducing clause leave people with a false sense of security, when they think they have more coverage than they really do.

"What the reducing clause does, is it sets an upper limit. If your number was $300,000 for bodily injury and the guy that hit you was at $250,000, that means your insurance only gives you $50,000 more."

The Wisconsin Association for Justice, which opposes the rollback, says consumers should be able to collect the full value of all policies when they are injured.

Car production up 8.9% in January

Car production up 8.9% in January

Car insurance companies will be pleased to know that UK car production rose 8.9% year-on-year to 110,179 units in January.

According to new figures released by theSociety of Motor Manufacturers and Traders (SMMT), commercial vehicle production also increased 8.9% year-on-year last month.

A total of 9,967 commercial vehicles were manufactured in January, while UK engine output rose 12%.

Paul Everitt, chief executive of SMMT, said: "UK automotive manufacturing made a flying start to 2011 despite tough economic conditions.

"The encouraging figures demonstrate ongoing growth in global demand for the high-quality vehicles and engines manufactured in the UK at some of the world's leading sites.

"Automotive is leading the manufacturing revival, but to ensure this positive trend continues, the Government must prioritise UK manufacturing, through a supportive tax system, plus sustained investment in skills, research and development (R&D) and capital equipment.

"Ahead of the Budget in March, SMMT is urging the Chancellor to provide R&D tax credits for small and large companies, to increase capital allowances and to reflect the sector's importance through the business rates system."

Car Insurance Herald

Car insurance holders urged to carry out maintenance checks

Motorists are being urged to carry out regular safety checks on their vehicles to avoid accidents and unnecessary insurance claims.

The warning comes after Sainsbury's Bank research found that 21 per cent of drivers do not carry out safety checks on their car each month. One in three said they did not believe it was necessary. Even though it is a legal requirement, checking the tyre tread depth was found to be the safety check most neglected, with only 38 per cent checking this each month. By law, a tyre's tread depth must be at least 1.6mm.

Just 56 per cent of those surveyed said that they check their car's water coolant level regularly, leaving the remainder of survey respondents who do not check at risk of their car overheating. Half said they do not check their windscreen wipers or their brake lights.

An insurance expert at Think Money warned that failing to carry out basic checks could increase the risk of having to make a motor insurance claim. Ben Tyte, Head of Sainsbury's Car Insurance, said, "It's simple, straightforward and requires just a few minutes to carry out basic checks, and doing so will give you peace of mind that your car is in a good condition and safe to be on the road."