California car insurance asking for odometer reading

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I received a form from my car insurance company asking for the odometer readings of our 3 cars.
My concern is that this is not going to be representative of our future driving distance. My wife's car has a lot of mileage because she was finishing college two years ago, and she had to drive 35 miles each way. So she has a lot of mileage on her relatively new car, but since she finished school she doesn't drive much; her work is now within 10 miles of home.
If the insurance company takes the odometer reading and divides it by the number of years since the car was purchased, then this will not accurately predict how much she will drive this year.
If I don't return the odometer form, are they going to give us the opportunity to provide maintenance records from the past year, or documentation showing the distance of her current work location from home?
Because using the odometer reading doesn't make sense... that makes too many assumptions and people don't always drive the same amount from year-to-year. This is the very first time they would have our odometer readings so I can only assume that they would average it over all the years since the car was purchased.
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California Considering New Mileage Verification Rules May 31, 2006
Insurance brokers and agents could be required to verify odometer readings for new and renewal automobile insurance policies under amendments the California Department of Insurance (CDI) has proposed to its personal automobile rating factor regulations.
CDI has proposed amending Section 2632.5, of the California Code of Regulations, to specify how insurers may-and may not-verify estimated annual mileage. Under Prop. 103, annual mileage is second in importance only to driving safety record in the weight insurers may assign in establishing personal auto insurance rates.
Under the CDI proposal, new applicants would be required to estimate their annual mileage and provide insurers "reasonable information necessary to support the estimate." "Reasonable information" would be defined to mean, "the location of the applicant's workplace if the vehicle is used for commute purposes, the number of days per week the vehicle is used for commuting, an estimate of the number of miles driven for pleasure or other purposes, the approximate total number of miles driven the previous year, and the reason for any differences in the estimate for the upcoming year and the miles driven the previous year."
Insurers would be permitted to require applicants to provide their current odometer reading, or to obtain the last odometer reading from the California Department of Motor Vehicles smog certification program.
The proposed regulation further states, however, that "If an insurer markets using an independent or captive agency system, and an applicant meets with an agent in connection with the insurance application, the insurer may require the agent to verify the odometer reading of the vehicle to be insured under the policy, and the applicant shall allow the agent to do so."
If an applicant fails to provide or permit an agent to verify the odometer reading, if the insurer has no other means reasonably to estimate annual mileage, and if the insurer has clearly indicated the consequences of not providing that information, the insurer may issue the policy using a "default annual mileage figure, which has been filed with and approved by the Commissioner."
Insurers would be prohibited from changing the mileage estimate provided without notifying the applicant of that change and providing at least 15 days from mailing that notice, to challenge the insurer's determination under the proposed regulations. Insurers could request, but not require, an applicant to provide prior documentation, such as prior vehicle maintenance records or prior smog certificates. Insurers could not require an applicant to provide information from a prior insurer to confirm mileage estimated or driven.
A conference call workshop was held May 25, in which insurers argued for greater flexibility in deciding whether and how frequently to request documentation for mileage estimates. IBA West will be providing testimony on the proposal at a public hearing, June 13, at CDI offices in San Francisco at 45 Fremont Street.
A copy of the proposed regulations appears below:
STATE OF CALIFORNIA DEPARTMENT OF INSURANCE 45 Fremont Street, 21st Floor San Francisco, CA 94105 RH06091489 April 14, 2006 PROPOSED REGULATION TEXT1 Mileage Verification Section 2632.5 Rating Factors.
(c) An insurer's class plan, and all rates and premiums determined in accordance therewith, shall utilize the following rating factors (the "Mandatory Factors") for bodily injury liability, property damage liability, medical payments, uninsured motorist, collision, and comprehensive coverages:
(1) .... (2) "Second Mandatory Factor" as used in Subchapter 4.7, is the number of miles he or she drives annually, per California Insurance Code Section 1861.02(a)(2). This factor means the estimated annual mileage for the insured vehicle during the 12 month period following the inception of the policy. Insurers may not retroactively adjust premiums based on actual miles driven unless notice is provided to the policy holder prior to the effective date of the policy. Estimated annual mileage shall be determined only as follows: (A) For new business: (i) At the inception of a policy, an insurer shall require an applicant to provide the miles he or she expects to drive the insured vehicle during the 12 month period following policy inception, and reasonable information necessary to support the estimate. "Reasonable information" consists of the location of the applicant's workplace if the vehicle is used for commute purposes, the number of days per week the vehicle is used for commuting, an estimate of the number of miles driven for pleasure or other purposes, the approximate total number of miles driven the previous year, and the reason for any differences in the estimate for the upcoming year and the miles driven the previous year. Except as otherwise set forth in this section, an insurer shall use the applicant's estimated annual mileage; (ii) To substantiate the estimated annual mileage, an insurer may require all applicants to provide, at policy inception, the current odometer reading of the vehicle to be insured or the insurer may obtain the odometer reading from the California Department of Motor Vehicles smog certification program; (iii) If an insurer markets using an independent or captive agency system, and an applicant meets with an agent in connection with the insurance application, the insurer may require the agent to verify the odometer reading of the vehicle to be insured under the policy, and the applicant shall allow the agent to do so; (iv) If an applicant does not provide the information set forth in (i) and (ii) above, and the insurer has no other means reasonably to estimate the miles to be driven during the 12 month period following inception of the policy, and the insurer has clearly indicated the consequences of not providing that information, the insurer may issue the policy using a default annual mileage figure, which has been filed with and approved by the Commissioner. Upon receipt of the information set forth in (i) and (ii) above, the policy shall be rated using that information. The insurer may choose to re-rate all policies as of the date it receives the information, or as of policy inception. However, an insurer shall apply the same method for every policy. (v) All mileage rating rules that direct the selection of a mileage rating relativity shall be filed with and approved by the Commissioner. This includes use of multiple mileage rating bands and use of default and/or average mileage rating relativities. (vi) In no event shall an insurer rate a policy unilaterally changing the mileage estimate provided without notifying the applicant of that change and providing the applicant a reasonable opportunity, no less than fifteen days from the date of mailing of that notice, to challenge the insurer's determination. (vii) An insurer may request but shall not require an applicant to provide prior documentation, such as prior vehicle maintenance records or prior smog certificates, in order to confirm mileage driven because, for a variety of reasons, applicants may not have access to this documentation. (viii) In no event shall an insurer require an applicant to provide information from a prior insurer to confirm mileage estimated or driven. (B) For renewal business: (i) Prior to policy renewal, an insurer shall require a policyholder to provide the miles he or she expects to drive the insured vehicle during the 12 month period following policy inception, and reasonable information necessary to support the estimate. "Reasonable information" consists of the location of the applicant's workplace if the vehicle is used for commute purposes, the number of days per week the vehicle is used for commuting, an estimate of the number of miles driven for pleasure or other purposes, the approximate total number of miles driven the previous year, and the reason for any differences in the estimate for the upcoming year and the miles driven the previous year. Except as otherwise set forth in this section, an insurer shall use the policyholder's estimated annual mileage; (ii) To substantiate the estimated annual mileage, an insurer may require all policyholders to provide, at policy renewal, the current odometer reading of the vehicle to be insured or the insurer may obtain the odometer reading from the California Department of Motor Vehicles smog certification program; (iii) If an insurer markets using an independent or captive agency system, and a policyholder meets with an agent in connection with policy renewal, the insurer may require the agent to verify the odometer reading of the vehicle insured under the policy, and the policyholder shall allow the agent to do so; (iv) If a policyholder does not provide the information set forth in (i) and (ii) above and the insurer has no other means reasonably to estimate the miles to be driven during the 12 month period following renewal of the policy, and the insurer has clearly indicated the consequences of not providing that information, the insurer may renew the policy using a default annual mileage figure, which has been filed with and approved by the Commissioner. Upon receipt of the information set forth in (i) and (ii) above, the policy shall be rated using that information. The insurer may choose to re-rate all policies as of the date it receives the information, or as of policy inception. However, an insurer shall apply the same method for every policy. (v) All mileage rating rules that direct the selection of a mileage rating relativity shall be filed with and approved by the Commissioner. This includes use of multiple mileage rating bands and use of default and/or average mileage rating relativities. (vi) In no event shall an insurer rate a policy unilaterally changing the mileage estimate provided without notifying the policyholder of that change and providing the policyholder a reasonable opportunity, no less than fifteen days from the date of mailing of that notice, to challenge the insurer's determination. (vii) An insurer may request but shall not require a policyholder to provide prior documentation, such as prior vehicle maintenance records or prior smog certificates, in order to confirm mileage driven because, for a variety of reasons, policyholders may not have access to this documentation. (viii) In no event shall an insurer require a policyholder to provide information from a prior insurer to confirm mileage estimated or driven.
Authority cited: Section 1861.02, Insurance Code; and CalFarm Insurance Company v. Deukmejian (1989) 48 Cal.3d 805. Reference: Sections 1861.02, 1861.05, 11628 and 11628.3, Insurance Code.
Find this article at: http://www.insurancejournal.com/news/west/2006/05/31/68968.htm
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You are making too many assumptions. Why not get facts? Call the insurance company. One reading tells you nothing, only the second reading since you owned the car so they may just record the number this time around. It may have been purchased used with very high or very low miles.
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wrote in message

They have been doing this in NY for many years. The insurance company wants to know how many miles a year you drive. The more miles you drive the more the risk of accident. They also want the mileage in the event your car is stolen or totalled so that they can determine the value of the car.
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Yes, I wouldn't get all worked up over it either. The insurance company, like everyone else, knows you can't base how many miles someone drives by simply taking one mileage reading and dividing it by how old the car is. Lots of people buy a car with 100K miles on it that they had no part in driving.
However, if you tell them this year it has 100K on it and next year that it has 110K on it, then they have something they could check to verify if you're fibbing. Sounds like a good idea to me. Part of the risk profile is how many miles a year you drive and I'm sure plenty of people lie about that to try to get lower rates.
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On May 19, 6:53 am, snipped-for-privacy@optonline.net wrote:

The replacement value of a car is also partially determined by how many miles are on it.
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You worry to much about nothing, and I didnt even read 95% of your to long posting.
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Soon every vehicle will have a on line GPS tracking recording device where and when you go, automatically sending tickets for seeding etc. attempting to disable the device will put the vehicle out of operation.
the device will report in as you drive by local data collection points, so many there will be no avoiding them.
ahh bob spends time in crime areas, car insurance rate up, he tends to speed just thats another increase........
isnt technology wonderful?
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bob haller wrote:

Most large truck already have them but govmint is not going after them. Morons that steal these trucks are easy to catch. I understand in Europe trucks are required to keep a recorder chart log that recalls time on road and speed. A cop can check it and issue a speeding ticket for exceeding the speed limit at any time on chart. This was 20 years ago and I assume they have modernized practice.
For OP, DE gives discounts for low mileage although the sob's are increasing rates for those over 70 years old. Us old people drive less but pay more. Bottom line - insurance company is going to screw you.
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old people cause more accidents hence the higher rates. There's a point when a person is no longer safe to drive at all but too many people in such a state continue to drive anyway.
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Frank wrote:

Its based on statistical risk. Stats say young and old are more likely to cause accidents.
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ddbean wrote:

You might be getting screwed, but someone else will be getting a bargain.
It averages out.
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And this relates to home repair, how?
--
Christopher A. Young
Learn more about Jesus
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He uses the car to go Home Depot?
--
"Distracting a politician from governing
is like distracting a bear from eating your baby."
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Stormin Mormon wrote:

Bashing California, cats, and HOAs are usually appropriate side-topics.
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The OP wants to roll back the odometer.
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ddbean wrote:

Hi, Where I live reporting about mileage is not mandatory. I think you worry TOO much. Anything else you worry like this? As long as you keep good driving record, what matters?
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snip
you needed to quote 225 lines just to provide context for your comment? sheesh, learn how to trim!
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With the new laws, mileage will have a much greater impact on the price of the policy.
By law, the mileage now becomes a higher priority mandatory factor.
I'm just trying to figure out how the insurance co. will compute this based on the odometer reading. Are they going to take the current reading I give them and average it over all the years since the car was purchased (bad way of doing it), or are they going to wait until next year when I fill out a second form so they can see the actual difference (makes more sense, but then the insurance co. must wait another year). So far no one has been able to confirm which of these two techniques are used... and this is going to adjust everyone's rates in California real soon.
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Quit stressing about this and just pick up the phone and call your insurance agent/insurance company.
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On Mon, 18 May 2009 23:28:32 -0700, against all advice, something

Won't your agent answer this question?
--

Real men don\'t text.



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