Car insurance in California is expensive. Reasons for high rates in California include the amount of heavily trafficked roadways, high costs of repairs and regular severe weather conditions, such as wildfires, floods and earthquakes.
If you are looking for ways to reduce your car insurance costs, you should know the factors that affect your rates.
1. Driving record
Your driving record impacts the amount you pay for car insurance. If you have multiple moving violations, the insurance company will count these against you and put you in a higher risk category for determining your rates. Some insurance companies allow you to improve your standing by taking driver safety training.
2. Expensive vehicle
The insurance company considers potential repair or replacement costs on your vehicle when determining the rate to charge you. More expensive cars will result in higher rates than less costly models.
3. Discount programs
If you take advantage of a discount program offered by your insurer, you can lower your premium. Most insurance companies have a variety of discounts available—these range from enrolling in electronic billing to allowing monitoring of your driving habits. A typical discount is a bundling offer that reduces your rates by a certain percentage if you have multiple insurance types with the same company.
4. Age of driver
Data has shown that young drivers are at higher risk for accidents and vehicle damage. As a result, insurance companies charge more for young and inexperienced drivers.
Insurers base their pricing on multiple factors. You should review options with different companies to get the best rate.
