California Auto Insurance

Zip Code
As you can see, where you live plays a huge role in your cost of insurance.  This is due to data in public records that show that in those cities accidents are happening at a much higher rate, as a result, premiums are inflated. Southern California auto insurance rates are somewhere in the middle when it comes to the cost of insurance.

Mileage
Mileage is another factor that can have a high impact on an individual premium. High mileage is usually anything over the national average of 12500. You can lower the mileage listed on the policy by providing oil change receipts showing the mileage between changes.

Drivers
Driver’s age, experience, and driving record are huge factors in the cost of insurance. If any drivers have tickets or accidents. Those will stay and be charged on the policy for anywhere between 3-5 years from the date of conviction or date paid. Young or new drivers are rated higher because of the lack of experience. New drivers will not qualify for a Good Driver Discount until the 3rd year of driving. Although there are a few carriers that will still offer the discount. We recommend shopping around when looking for insurance for younger or new drivers.

Type of Vehicle
When selecting a vehicle another thing to consider is the type of vehicle. Sports cars and high-performance and SUVs are rated higher than your standard sedan with normal specs. For obvious reasons, the stats show that sportier vehicles are involved in more accidents than those without the modifications for speed. Value of the vehicle is another factor here. Full coverage vehicles are rated based on the value of the vehicle being insured.

Coverage
Coverage selection is an important part and plays a huge part in the total premium. I recommend comparing the different options to see what company offers you the best coverage for an affordable price and how it fits in your budget. Below we show what coverages are offered by most carriers. This will allow you to get a better idea of how insurance works and the affordability of each coverage.

Picking the right coverage for your particular needs can be a little confusing sometimes. We are going to break down some coverage's for you to help you get a better idea of what you need. Finding cheap rates sometimes means sacrificing coverage. This doesn’t need to be the case. By comparing your auto insurance online you give yourself an opportunity to find the right auto insurance coverage for the right price. Most cities in Southern California are considered high traffic areas and accidents are an everyday occurrence. That’s why it good to have sufficient coverage. Let’s break it down!

Liability Only Auto Insurance

California law requires anyone driving a vehicle to carry at least liability coverage. Liability covers third party only. Liability covers damages resulting from an at-fault accident. These damages include Bodily Injury and Property Damage to other. This coverage can range in price depending on the limits selected. Limits can vary from company to company. For instance, one company can offer limits of $15000 max per person bodily Injury to others and another company will offer limits up to $250,000. State requirements are currently $15000 per person bodily injury / $30000 per accident bodily injury / $5000 property damage per accident. However, especially in California, it has been proven that when there is a multi-vehicle accident, these coverage's do not suffice. It is important to always keep in mind that liability insurance helps cover medical and legal fees if you're held legally responsible for someone else's injury, or damage to someone else's property. If your policy does not have sufficient coverage, you are still liable for the expenses accrued for the other party.

Uninsured/Underinsured Motorist

Uninsured or Underinsured motorist is an affordable auto insurance coverage that is highly recommended due to the price and benefits. This protects the insured from any uninsured drivers. If an uninsured driver were to injure the insured or his/her passengers. This protection would cover for the bodily injury caused by an uninsured driver. Furthermore, if the vehicle is damaged it would cover the cost of repairs up to $3500. If the vehicle had full coverage. Most companies will waive the entire deductible and cover the complete cost of repairs. This coverage usually ranges from $5-$25 per month depending on the limits selected. Coverage is usually equal to the liability limits selected. An excellent coverage to have.

Medical Payments

When choosing medical payments it is good to look at what deductible you have on your health insurance. Medical Payments usually don’t cover much more than a health insurance deductible. It does come in handy to prevent any additional expenses that may result from having an accident. Coverage limits range from $1000 – $50000. 

Comprehensive / Collision Insurance ( Full Coverage Insurance )

Comprehensive and Collision can be purchased together or separately. It is more commonly purchased together as one complete coverage known as FULL COVERAGE INSURANCE.

• Comprehensive – Other Than Collision Coverage : Example: Stolen Vehicle, weather related claims, vandalism
• Collision – Moving Collision Accident

When purchasing a new vehicle most lenders will require you to obtain comprehensive and collision coverage to protect the loan on the car. If you still have a loan it would be a good idea to ask your dealer to add gap insurance coverage. Gap covers the difference between ACV or Actual Cash Value of the vehicle and the balance of your loan. If there is a total loss of the vehicle, having a remaining balance that you have to pay on, would not be good. 

Rental and Towing

This is an additional Coverage that is not automatically added to most policies but is recommended. Especially if you only have one vehicle. Towing can be expensive. This helps save on more unexpected expenses. Prices usually range from $3 to $10 per month

On the above quote, we showed you how simply adding a discount can save you hundreds of dollar on your auto insurance. To ensure that you are getting the best possible rate. Be sure to ask what discounts are available to you. Here is a list of discount that most companies will offer.

Discounts:

• Multi-Car – This discount is sometimes up to 40% off the entire premium. WOW! Two cars for the price of one basically.
• Marriage – If you are legally married you qualify for a marriage discount on your policy. This can lower your auto insurance payment by $5 – $15 per month.
• Student – Most companies will give a small discount for full-time students who are preforming well in school. Requirements for this discount is a 3.0 or above.
• Low Mileage – If you don’t drive far for work or you hardly even drive at all you will most likely qualify for this discount. What you will need is to provide oil change reports that show the mileage in between your last few oil changes. Some companies require signing a mileage disclosure form in order to lower your rate. This one could save you a ton of money if you are not driving a lot. Just make sure to get all your documents together to avoid any up-rates.
• Safe Driving Classes – Not all companies give this discount out but it is recommended for younger drivers trying to keep the cost of their insurance down.
• Military – If you are an active or retired member of the military. You qualify for a military discount.
• Multi-Policy – This discount can range from 2% – 15% depending on the company. Bundling your insurance not only saves you money but also is very convenient when it comes to paying your premiums. Bundle your HOME, AUTO, COMMERCIAL and LIFE policies to save even more.