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CAARP Introduction, Part II: Private Passenger
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Premium Development

Determine your applicant's rating band

  • The rating band is determined by the applicant's zip code.

Classify Your Driver

Determine your application's classification by using the Classification Chart. The driver in the household who has the highest rated classification shall determine the rate for the first vehicle. If there is more than one vehicle, the second vehicle shall be rated according to the next highest driver classification and so on until all vehicles are classified. Any more than 5 vehicles is a fleet and would need to be submitted as a commercial risk.


Private Passenger Auto Classifications:


Class 1 - No Business Use, No Youthful Drivers

Class 1A
  • Personal use
    Class 1B
  • Less than 10 miles to work
    Class 1C
  • More than 10 miles to work
    Class 6
  • Senior Operators - Same as Class 1- Classifications used for statistics only

    Youthful Drivers
    Classes 2A, 2B, 2C and 2E = male drivers under the age of 25, or between the ages of 25-30, not subject to Class 1

    Class 2D = unmarried female drivers under the age of 21

    Class 3 - Private Passenger vehicles used in Business
    • Owned by corporation, partnerships, or incorporated associations not subject to Class 1, 2, or 6 Rates
    • Sedan type vehicles only, no pick-ups or vans

    Mature Driver Improvement Course Discount

    A 5% discount shall be given for people who are over 55 years of age and have successfully completed a Mature Driver Improvement Course approved by the California Department of Motor Vehicles.

    This discount applies to the liability coverage only. Read the chart from the left to the right, moving to the boxes to the right to determine classification.


    Additional Surcharges

    Apply additional charges on the basis of penalty points accumulated during the experience period to the total policy premium.

    The experience period is the 36 months ending 60 days prior to the date of application for assignment or in the case of renewal the 36 months ending 60 days prior to the effective date of the renewal.

    Assign penalty points for:

    • Each at-fault accident involving the applicant, the named insureds or any other person who usually operates the auto(s).
    • Each conviction involving the applicant, named insured, or any other person who usually operates the auto(s).

    All penalty points for all operators shall be charged on a cumulative basis to the highest rated vehicle. A maximum of 12 points can be charged per vehicle. If there is more than one vehicle on the policy the remaining points would then be applied to the next highest rated vehicle.

    Penalty Points Assignable for Accidents and Convictions

    Accidents
    • Two penalty points shall be assigned for each auto accident resulting in bodily injury or death.
    • One penalty point shall be assigned for each auto accident resulting in damage to property in excess of $750.00.

    Convictions

    The term "conviction" shall include a guilty plea, judgment of guilt, forfeit of bail, admission of guilt through the payment of a fine or failure to answer a summons as a result of an arrest arising out of any of the offenses specified in this rule.

    For all minor convictions, 1 point is charged for the first conviction and 2 points for each additional minor conviction, regardless of who in the household got the ticket. All major convictions are charged points as listed on the chart.

    If there is an accident with a minor conviction, you would only charge for the accident. If there is an accident with a major conviction, you charge for both the accident and the conviction.


    Penalty Point Values

    Additional Charges for Penalty Points shall be made on the basis of the following:

    0 penalty points $0
    1 penalty point $40
    2 penalty points $70
    3 penalty points $130
    4 penalty points $240
    5 penalty points $370
    6 penalty points $550
    7 penalty points $740
    8 penalty points $930
    9 penalty points $970
    10 penalty points $1020
    11 penalty points $1060
    12 penalty points $1110

    SR22 Financial Responsibility

    An SR22 Financial Responsibility Filing is sometimes required if an insured has too many tickets or has been in an uninsured accident.

    • If there are no points on the person's driving record (i.e., a not at fault uninsured accident) a $15.00 filing fee will be charged.
    • If the insured has points on their driving record, there is no charge for the filing
    • DOC (Drive Other Car) Coverage is available for an additional charge as follows:
      • If the SR22 filing is for the applicant or their spouse, the DOC charge is $12.00.
      • If the SR22 is for any other member in the household, the DOC charge is $18.00.


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    © 2008, LunchTimeCE, Inc and AIPSO. All Rights Reserved.
    Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation.
    The authors, LunchTimeCE, Inc. and AIPSO, and any organization for whom this course is administered will have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this course.