Lowest Auto Insurance Rates California - Looking for the best car insurance in California? Not surprisingly, where you live impacts what you pay and average car insurance rates. However, a new study examining auto insurance rates in California suggests that location may be a bigger price factor than most people realize.
The study examined the economic impact of ZIP codes on auto insurance premiums in all states. Using a 45-year-old married couple with a clean driving record and two cars, the city, a comparison was made by county and zip code, and the results were somewhat surprising.
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According to the National Association of Insurance Commissioners, the average auto insurance premium in California is $746 for one vehicle. So how do California cities compare to the average?
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The most expensive city is Beverly Hills. Average auto insurance rates are 44 percent higher than the state average. Meanwhile, Morro Bay holds the distinction of being California's cheapest city for car insurance. Residents of Morro Bay earn 30% less than the state average.
Even within individual cities, insurance premiums can vary significantly by zip code. Insurance premiums for the same couple in Los Angeles can vary by 33% depending on where you live.
Los Angeles residents pay 32% higher car insurance premiums than those in California. Although San Francisco residents pay 8% more than the state average, San Diego residents earn 11% less than the state average.
Residents of California's capital, Sacramento, pay 15% more than the state average for car insurance.
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According to Rachel Jensen, associate attorney at the American Insurance Association, the price difference between some cities may surprise some consumers, but there's a reason for the disparity.
"Insurers use it to accurately predict the geographic location of claims for physical damage, theft, and vandalism," says Jensen.
When an insurer sets your premium, they take into account population density and the frequency and severity of claims in a given city, says Bob Passmore, director of personal lines policies for Property Casualty Insurers. Association of America.
For example, Los Angeles' population is 3.8 million, while Morro Bay's population is just over 10,000. These numbers will produce very different claims data.
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"Simply put, if you live in a city with more people, there will be more traffic. When there's more traffic, there are more accidents," Passmore said.
In California, car insurance costs an average of $180 to $220 per month, depending on a few factors such as your driving history. You can expect to pay around $750 per year for minimum coverage.
Car insurance rates in California are generally more expensive due to a few factors that affect the average cost of car insurance in a state, such as high-crime urban areas and densely populated cities.
When it comes to county-specific insurance premiums, residents of the state's central cities can expect to pay the most. Below are the three most expensive counties to purchase car insurance in California.
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"I think it's within the range I expect," said Tully Lehman, spokeswoman for the California Insurance Information Network. “Counties at the top of the list are generally more urban with more cars on the road. On the other hand, "The lower three are generally more rural and you can drive for miles on the road without seeing another car."
The most interesting finding of this study is how insurance premiums can vary dramatically between zip codes within the same city. for example, Los Angeles is its most expensive zip code; 90038 (West Hollywood) and its most expensive; 90045 (Westchester) has a difference of 34%.
Movements were not as dramatic in some of California's other major metropolitan areas. In San Diego, residents of the most expensive ZIP code, 92105 (Kensington), pay 20% more than residents of the most expensive ZIP code, 92131 (Scripps Ranch).
In San Francisco, residents of the most expensive ZIP code, 94124 (Bayview Heights), pay 14% more than the most expensive ZIP code, 94123 (Marina).
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"It really depends on the size of the city you're talking about," Jensen said. “In larger cities, there will be greater oscillation between postcodes. In smaller towns, this change may be less significant. It's always a good idea to get multiple car insurance quotes when shopping locally for a policy.
Although they do require you to have minimum coverage in California. Your coverage depends on you and your current condition.
Anyone moving to California should understand state laws regarding traffic laws and auto insurance. Reading the California Driver's Manual is a good resource to learn about the various state laws and requirements that may differ from other states. Here are some things to know if you are moving to California.
In 1988, California voters passed a ballot that limited the factors insurance companies could use to rate their insurance companies. This includes prohibiting the use of credit scores. Since then, Golden State insurance companies must base their insurance premiums on three factors, Lehman said:
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After adjusting these factors, Insurers are responsible for the type of vehicle; Additional factors may be used to determine rates, including marital status and postcode. So while a driver's ZIP code isn't one of the main pricing factors, it still plays a role in setting premiums.
"Proposition 103 has forced insurance companies to look primarily at how we drive, not where we live. If that didn't happen, you'll see bigger differences from zip to zip," said Doug Heller, an independent consumer advocate with the Consumer Federation of America, "Insurance companies don't reject the use of ZIP codes entirely, but they minimize their impact, which is ultimately good for consumers."
No matter what California zip code you call home, here are 4 tips to save money on car insurance.
According to Lehman, most consumers don't think about their auto insurance often enough, which ends up costing them more.
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“Shopping for car insurance is something you should do (at least) every two years,” Lehman said. "That doesn't mean you have to change companies every time, but there's always a chance there's a better deal out there."
Many drivers may be eligible for discounts on their car insurance coverage – but insurers don't usually give them automatically, so policyholders should ask if they're eligible for a price reduction.
It's always a good idea to check with your insurer for discounts if you're renewing your policy or going through a major life change, such as getting married. You can also benefit from a discount:
"Collision coverage pays for your car if it's damaged in an accident, but that might not be necessary," Lehman said. "If your car is only worth $2,000 and you have a $1,000 collision deductible, it doesn't make sense to pay extra for that category."
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Although it varies from vehicle to vehicle, Lehman said an accident can save about $300 a year.
Boasting annual premiums that start between $226 and $338, the CLCA was set up in 2000 as a way to provide low-cost insurance to California residents who otherwise could not afford it. To qualify, drivers must have a clean driving record; Must be at least 19 years old; Licensed for at least three years; Own a vehicle worth $20,000 or less and meet the income criteria (so, family of four, income less than $23,550 per year.) To help you find cheap car insurance in California, Our editorial team compares quotes from top California auto insurance companies in every zip code. Customer service; We've ranked the best California companies based on convenience and availability of coverage. We also rank the best cheap companies based on their affordability for different drivers.
To find the cheapest companies; We compared quotes for liability-only coverage that meets California's minimum bodily injury liability requirements of $15,000 per person and $30,000 per accident. Quotes for full coverage policies include state minimums as well as higher liability limits than collision and full coverage.
Geico has the cheapest auto insurance for most drivers in California. The company charges an average of $31 per month for a minimum liability policy. That's 36% cheaper than the state average.
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California drivers can also find affordable auto insurance through AAA of Northern California (AAA NorCal) or Progressive. Both car insurance companies offer cheaper than average rates and have some of the best customer support scores in the AAA state.
AAA offers car insurance through AAA Northern California, also known as AAA NorCal or CSAA, to Northern California residents, and Southern California (AAA SoCal) covers Southern California drivers.
It's at Geico.
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