Factors That Affect How Much You Pay for Car Insurance in California
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Ron Trumbo
Insurance Editor
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California is a state with a lot of regulations — and taxes for that matter! Many of these regulations are intended to protect California consumers from insurance companies. Specifically, Proposition 103, passed back in 1988 when the Trans Am was still cool, told California insurance companies exactly what factors they can use to determine your car insurance rates.
Your California Driving Record
Do you have any tickets or moving violations in California. When was the last time that you looked at your California driving record? Just like your credit score, sometimes driving records can have errors, so make sure to double-check your by visiting the California DMV.
Mileage and Car Insurance Risk
The number of miles you drive every year affects how much California car insurance companies can charge you. Are you driving from Fresno to San Francisco daily for work? Do you simply park your car in your garage and walk to work? Perhaps you carpool on Southern California’s congested 405? The mileage you put on your car has a lot to do with how much you pay for car insurance in California.
Are You an Experienced California Driver?
Your driving experience, specifically the length of time you’ve been driving, is important to car insurance companies. In a nutshell, California insurance companies like safe drivers, and safe drivers tend to be those that have “a little bit of practice.” Younger drivers are obviously riskier, and middle-age drivers are generally in less of a hurry. It doesn’t take a mathematician to do the math on this insurance rate factor.
Other California Car Insurance Rating Factors
Since its original passage over 20 years ago, Prop. 103 has added over 15 additional rating factors that are not weighted as high as the previous three. In California, car insurance companies can also consider if you’re married or not, the location where you live and how many insurance claims are reported in that area, your gender, and the type of car or truck that you drive.
The most important point to take away from all of this is that California insurance companies charge different rates for different California drivers. Insurance companies are not in the business of taking advantage of consumers, they’re in the business of insuring risk and balancing that with competitive premiums. To find the best auto insurance deal in California, you absolutely have to compare at least 5 different insurance rates from different insurance companies and local insurance agents in California. |
