Monthly Archives: August 2015

Does Your Car Insurance Only Cover Aftermarket Parts?

More than likely your car insurance policy is not going to pay for more expensive original equipment manufacturer (OEM) parts if aftermarket parts are available. However, they will let you pay the difference for these more expensive parts if you choose.


Well, what if you want your insurance to cover the factory OEM parts? No one can blame you for this. After all it is what was on the car originally. Your best bet to avoid having any issues with your insurance carrier not paying for these OEM parts is to have the “Special Physical damage Coverage” endorsement added onto each vehicle. This optional endorsement will provide damage estimates for “your covered auto” based on available new parts from the original equipment manufacturer.


How much is this endorsement going to cost?  It all depends on the vehicle but on average it will be about $3-10 more a month.


For more details, contact one of our insurance advisors,


How Your Driving Record Affects Your Car Insurance Premium

The following is to give you a better idea on which convictions/violations or accidents will have the biggest impact on your car insurance premium. This is an excerpt from Allied Insurance policy form IN 0531 and can be found towards the front of your auto insurance policy packet you received in the mail:

“The determination of your premium cost is based, in part, on a point system described below, using past experiences (accidents and convictions). Drivers who have not been involved in an accident or who have not been convicted of a motor vehicle violation receive the lowest premium cost. For other drivers, premiums are based upon the number of points he/she has accumulated during the experience period of three years immediately preceding the effective date of the policy as a result of an accident or conviction.


1. Convictions – Points are assigned for convictions during the experience period for motor vehicle violations of the applicant or any other current resident or listed operator as follows:

a. Five points are assigned for conviction of:

1) Driving while intoxicated, “open bottle”, or any other violation involving the use of intoxicating liquor or narcotic drugs. This includes a “deferred sentence” involving license suspension or revocation for a drug or alcohol related occurrence.

2) Failure to stop and report after being involved in an accident.

3) Homicide or assault arising out of the operation of a motor vehicle.

4) Driving during a period while the driver’s license is suspended or revoked.

5) Permitting an unlicensed operator to drive.

6) Loaning an operator’s license to an unlicensed operator, or making a false statement in an application for license or registration, or procuring a license or registration through impersonation whether for himself/herself or another.

7) Engaging, aiding or abetting a spontaneous or prearranged speed contest.

8) Reckless driving.

b. Two points are assigned for a conviction of the following:

1) Passing violation, including but not limited to passing on the wrong side, on a hill or curve, or in a no passing zone; or

2) Speed in excess of 100 miles per hour.

c. One point is assigned for any other moving traffic violation conviction.

EXCEPTION: Convictions for the following shall not be regarded as moving traffic violations:

1) Any motor vehicle “equipment” requirement of the motor vehicle and traffic laws, except brakes; IN 0531 (09-13) Page 2 of 4 IN 0531 (09-13)

2) Failure to display proper number plates provided such plates are in existence;

3) Failure to have in possession operator’s or chauffeur’s license provided there is one in existence;

4) Failure to sign or display registration card.

2. Accidents – Points are assigned for each accident that occurred during the experience period, which resulted in Bodily Injury or Property Damage in excess of the amount listed under subsection (b) where the driver has been found principally at fault for the accident.

a. One point is assigned for each auto accident that results in bodily injury or death of any person.

NOTE: Medical payments claims for bodily injury that do not arise from the actual operation of an auto are excluded.

b. One point is assigned for each accident that results in property damage including but not limited to his/her own property, regardless of whether or not an insurance claim was filed, resulting in damages:

1) In excess of $750 per any one person if such accident occurred prior to December 11, 2011.

2) In excess of $1,000 in the aggregate if such accident occurred on or after December 11, 2011.

EXCEPTIONS: No points are assigned under your policy for an accident:

1) Involving an unlisted operator who is a named insured or driver under a separate policy with our Company. The point(s) will follow the driver to his/her own policy.

2) Involving an unlisted operator who is neither a resident of the named insured(s) household or a regular operator of the insured auto.

3) If the provisions of Insurance Code Section 488.5 apply.

4) In which the applicant, owner, resident relative, or other listed operator is (1) determined to be 50% or less at fault; or (2) reimbursed for 51% or more or more of his/her damages by, or on behalf of, any other person(s) involved in the accident.

3. Duplicative Points – Points incurred as a result of one accident are assigned either the points arising out of the accident or the violation; whichever has the greater number of assignable points.

4. Refund of Surcharged Premium – If a point has been assigned for an accident and it is later determined that the accident falls under one of the exceptions outlined above, the company will refund any increased premium cost generated by the accident surcharge to the insured.

5. Driving Safety Record – The Driving Safety Record will be determined from the number of Driving Record Points accumulated by all operators associated with the auto during the experience period. The total points for an operator are applied only to the auto to which he or she is associated.”