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7 Factors That Affect California Car Insurance Rates

    3 minute read

    Every month when your car insurance company takes money out of your bank account, you have this vague, sinking feeling that you are paying too much to have your vehicle covered. It’s expensive to live in California, and every little bit counts.

    You don’t need to feel bad about paying for car insurance in California. What you need is more information about what factors affect car insurance rates. This information may help you save money and lower your rate, which will give you a little more money to spend on all the other things you need.

    Factor #1: Your Driving Record

    A long, safe driving record makes you a much lower risk to insurance companies, while having points and/or accidents on your record makes you a higher risk. The higher the risk you represent, the higher your rate will be.

    Factor #2: Type of Car You Drive

    The safety features and safety record of your car can impact your car insurance rate. Be sure that your insurance company knows if you have any anti-theft devices like a car alarm or even a panic button so that you get the biggest discount possible.

    Factor #3: Where You Live

    Living in a neighborhood with a lot of crime or in an area where car theft rates are high, may mean that you will pay more for comprehensive coverage, which gives car theft coverage. Living in a high population area usually indicates higher car accident risk, which could also lead to a higher rate.

    Car insurance rates

    Having good car insurance helps protect your vehicle from loss and damage.

    Factor #4: Personal Factors

    Your years of driving experience, gender, and marital status are all personal factors that may affect your car insurance rates, due to insurance companies’ algorithms regarding risk for these factors.

    Factor #5: Insurance Company

    Different insurance companies will have varying rates, even for the same person with the same background and situation. The Huffington Post found that rates could vary by up to a third between different insurance companies, so it pays to shop around.

    Factor #6: Length of Policy

    While some insurance companies offer loyalty discounts, others may inch up your rates over time.  The best practice is to check your rates every year or so. If you work with an independent agent that represents many insurance companies, your agent can do the work for you and move you to another carrier if it makes sense.

    Factor #7: Coverage Amounts

    As long as you carry the minimum coverage for California, you can set your coverage amounts at a level you can afford and be comfortable with. You can decline to have collision and comprehensive coverage if your vehicle isn’t financed, and you can choose to carry a higher deductible if you have the means to pay that amount in the event of an accident.

    At the end of the day, there are lots of variables that can affect your California car insurance rates, but there are also lots of options that offer savings. Get an auto insurance quote from AIS Insurance to compare rates and see how much you can save.

    The information in this article was obtained from various sources. This content is offered for educational purposes only and does not represent contractual agreements, nor is it intended to replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. The definitions, terms and coverage in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.