MoneyGeek recently conducted research to analyze what factors affect car insurance rates in California, which vary significantly across insurers. They developed an estimate calculator to help drivers estimate their coverage costs more accurately; by asking simple questions about driver, vehicle and coverage needs they were able to produce an auto insurance rate estimate and identify which coverages may need adding for protection and which can be dropped to save money.
Your Driving Record
Accidents, speeding tickets, and traffic violations on your driving record have an immediate and substantial effect on auto insurance premiums in California and across the nation. DUI or at-fault accident convictions typically increase rates dramatically.
Credit History Your driving history and credit rating is another key component insurers use to assess risk. Drivers with better credit often file less claims. California doesn’t permit car insurers to consider credit when setting premiums; so this factor shouldn’t have as great an effect on rates as it might in other states.
Vehicle Choice
Your choice of make and model plays a large part in determining the cost of car insurance in California and across the nation. Some models are more likely to be stolen or involved in accidents, while some incur higher repair expenses than others.
Coverage Levels
Your liability coverage levels have an effect on your rates in many ways. Some carriers charge extra for higher limits while others offer discounts for high-value cars or those in good shape. It is typically advised that drivers select higher limits than state minimums when it comes to both collision and comprehensive coverage – this is especially important if you have savings or investments and wish to protect them.
Location / Population Density
Your city’s crime rate and population density can have an impactful influence on your car insurance rates. Densely populated areas tend to experience more accidents, leading to higher premiums. Furthermore, larger cities often incur greater repair and medical expenses compared to their smaller counterparts.
Coverage Options For additional liability protection beyond what your auto and homeowners insurance policies can provide, umbrella insurance is another way. It kicks in once the limits for both home and auto liability have been exhausted; typically starting with one million dollars worth of protection per policy and increasing from there.
Other Factors
Other key factors that can either increase or decrease car insurance costs in California are: