According to certain studies, California has higher rates than the national average when it comes to auto insurance. While average auto insurance rates in the US are $941.65, the car insurance rate in California is $1,588. This shows that California has 60% higher insurance rates compared to other parts of the US.
Huge urban population – California is known to have the highest percentage of the population living in urban areas. Generally, urban areas get to pay more than the rural areas for their auto insurance.
Population density – A small part of the reason why urban areas have higher auto insurance rates is the high density of city populations. California’s urban regions are more densely populated in the whole US.
Driving trends – The residents of California drive a lot. Their average auto miles daily are one of the highest in the country. So, the higher the driving trends, the higher will be the insurance rates.
Vehicle theft – California is also among the top five states in the US for cars stolen per 100,000 people. Higher the risk of car theft, the higher will be your insurance premium.
Rule of California Auto Insurance
Here are the major rules set for auto insurance California that everyone has to follow:
1. Minimum coverage levels in California
All drivers are likely to follow liability coverage for driving in California. It is to cover the cost of medical or damage bills one may cause in case of an accident.
In California, individuals require liability coverage for a minimum of the following amounts:
$15,000 for bodily injury cover per personal within an accident
$30,000 bodily injury cover total per accident
$5,000 property damage coverage per accident
Remember that these are only the minimum required amounts. For protecting yourself against larger costs, you must consider increasing coverage limits on the given liability policy.
2. California auto insurance laws for new people
If you’ve recently moved to California, your former insurance company cover may not necessarily be authorized in the state.
Remember that when you are new in California, you only get 10 days to register your car and get a driving license in California. This means you also need to get auto insurance Fullerton fairly quickly.
3. Collision deductible waiver
Rules for car insurance in California affirm that insurers must provide drivers the coverage option for damage that an uninsured driver can cause to their vehicle.
If you have collision coverage, it protects you from the entire collision deductible waiver. It means that you will get coverage for the damages if your car is damaged by an uninsured driver, without even requiring a deductible.
4. California Auto Insurance Discount
For Californian drivers, the state offers car coverage with a special offer. However, this discount or offer is available only if:
You Live in California
You are Above 18 years old
You Have a good driving record (no violations/accidents)
5. A credit score doesn’t affect rates
Although the average auto insurance rates are higher in California, it is not bad news at all. The state regulations ensure that insurers can’t use their credit scores for setting rates.
It matters because insurance firms will claim that there is a link between low credit score and how someone is likely to make a claim. But what happens is that good driver with low incomes ends up paying higher auto insurance rates.
This means other factors will have a major impact on your car insurance, including:
Your driving record
Where you live
Your age
Your car
Getting car insurance quotes in California When looking for car insurance in California, there are several companies with scores of options. It means you only have to search for yourself and look at which one offers you the best rate in all situations.
