California Car Insurance Rates

Insurance rates vary across the country, and residents in some areas will pay more than in others. Urban centers tend to have higher premiums due to more drivers being on the road, but this isn’t the only consideration.

If you live in California, here are some facts you be interested in regarding your state’s auto insurance rates.

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Rated High by Forbes

Louisiana may have fewer urban centers, but they’re actually at the top of the list for high auto insurance rates. Average premiums in the state are over $2,500.

According to Forbes, California isn’t far behind with average premiums just over $1,700. This makes California the ninth most expensive state for insuring your car, and it makes shopping around even more important.

Other Considerations for Setting Premiums

Your state and city of residence aren’t the only factors driving your premium. There’s a wide range of information that companies take into account when deciding your annual cost of insurance.

The good news is that there are some steps you can take to control these factors and thus bring your insurance rates down.

• Driving record – Maintain a clean record to qualify for lower rates overall and special discounts.
• Personal profile – Companies have the right to look at your credit information. Try to increase your credit score and show fiscal responsibility to start qualifying for better rates.
• Your car’s ratings – Insurance companies know how a car rates for safety, and this will affect your rates. They also know how much repairs to your type of car run. Before making any purchasing decisions, speak with your agent to see how trading in your car on a new model may change your rates.
• Annual miles driven – Driving less rewards you with lower rates. Look into carpooling options to save money on gas and your insurance.
• Anti-theft options – Most new cars come with at least a basic alarm. If your car has Lo-Jack or other anti-theft features, then you may qualify for lower rates. Ask your insurance if they have accurate information regarding these add-ons to ensure that you’re getting the best rates possible.

What Happens if You Cause an Accident

In California, Financial Responsibility laws dictate that you carry a certain amount of coverage to protect other parties in the event that you cause an accident.

You must carry a minimum of $15,000 for bodily injury to an individual in an accident with $30,000 available for total injuries sustained by multiple parties in an accident that you cause. You also need at least $5,000 for property damage.

When you’re in an accident, you’ll share insurance information with the other party. They may work directly with your insurance company or choose to go through the courts for a judgment against you. If you’re sued personally, your insurance provider should cover your legal fees.

Once a judgment is finalized, or the company agrees to a settlement with the other party, then they only have to pay up to your policy limits.

If the damage exceeds those limits, then you could wind up paying for the damage out of your own pocket. This is why it’s vital to carry additional coverage. You’ll protect your assets and prevent wage garnishments from not having enough protection with the insurance company.

It’s important to remember that the liability insurance is only for other parties. It won’t cover the damage to your own car, personal property or personal injuries sustained by people who were riding with you. You’ll need collision coverage for any of those expenses.

What to Expect when You’re the Victim

You can be the most careful driver around and still be involved in an accident. When someone else is negligent, you may expect to benefit from their liability insurance. However, not everyone obeys the law, and even people with insurance may not have enough to cover all of the damages. In this case, you may look to the collision coverage on your policy to get your car fixed and pay for medical bills, but that won’t work either.

When an uninsured motorist causes an accident, the insurance companies still expect them to pay for the damage. When they lack the income or assets to put things back in order, you can wind up having to pay for your own repairs and rehabilitation expenses.

Uninsured and underinsured motorist coverage would pay for damages and injuries you sustain, so it’s important to ask about this additional coverage. According to a 2006 study, approximately 25 percent of the drivers on California roads are completely uninsured.

A 2011 report from USA Today puts that number at 15 percent, but this is still above the national average of 13.8 percent.

Whether 15 or 25 percent of the drivers around you are uninsured, the fact is that you’re going to constantly be around drivers who are in violation of the law. Even worse, these statistics don’t take into account people who are carrying only state minimums, and $15,000 won’t go very far towards damages if you’re driving a new BMW.

This is why you should strongly consider investing in this additional coverage. It will make your rates a little higher, but the price difference is well worth the peace of mind, and you never know when you might need the additional protection.

When No One is at Fault

There are times when no one is at fault for the damage to your car. A thunderstorm may send branches crashing into your car, and earthquakes can cause quite a bit of damage. Vandals may damage the finish on your car and even break your glass.

In these cases, there is no clear person at fault. If you only have liability, you’ll have to pay for the damage yourself. Comprehensive coverage is designed for these little mishaps that damage your car, and it’s required by most finance companies. Your deductible comes into play when you have to file a comprehensive claim, so you can minimize the price difference by choosing a higher deductible.

Check Rates Before you Move

If you’ve been thinking about getting out of the city or moving closer to an urban center, it’s worth it to check out the price differences in auto insurance first. Rates in Los Angeles are the highest with averages in the 90005 zip code of $2,451.

However, the average rates 175 miles away in Nipomo drop to less than $1,000 annually. Just leaving the main city center can drop rates, as is the case in Montrose. A suburb of Los Angeles, the average rates there are only $1823, which is roughly 25 percent less than residents in the large city will pay.

If you’re trying to decide between a few different cities, learning more about the insurance rates can help you make the right decision.

Regardless of what kind of coverage you need or the extras you’ll invest in, it’s important to shop around for the best price. In the past, this involved calling one company after another and repeating your information. You sat on hold, tried to keep lists and struggled to narrow down the field. Online comparison sites make it easier to find different rates and choose the right company.

You’ll enter your information once and then wait for the agents to contact you with rates. It’s easier to keep track of the offers and choose a few companies that will suit your needs.

Once you’ve narrowed it down to a handful of possibilities, take the time to look at consumer ratings and confirm their licensure with the state to ensure that they have an active license. In the end, you want to have a reputable company that will provide you with great service and attractive rates.

Be sure to always compare car insurance rates by using our FREE tool below. Simply enter your ZIP code to get started!