Factors Affecting Car Insurance Rates
In California, personal injury protection(PIP) and no-fault coverage aren’t required. Coverage is available for low income drivers through California Low Cost Automobile Insurance Program (CLCA). A clean driving record helps decrease the cost of your policy. Many factors determine your rates like: age, sex, zip code, daily travel distance. Here are a few things that affect your California auto insurance policy:
1. Driving Record
The premium for insurance is higher for those drivers who have been involved in an accident in which they were found guilty or ones that have traffic convictions on record. This is because, studies have revealed that such drivers generally tend to repeat their accidents or violations within next 3 years.
2. Family Members
Insurance companies also look into the family members who have access to the car. A teenage son in the family who drives the car may shoot the premium up a little.
3. Car Make
The amount you pay for insurance may also depend on the model of your car. Some cars may be considered risky because of high repair costs, frequency in accidents, or being popular with thieves. Similarly, a flashy sports car or a high performance model will raise the premium amount.
4. Marital Status
Young married drivers are seen to be involved in accidents less frequently than young single drivers. As such, they are charged lesser after marriage.
5. Place of living
Insurance rates are regulated based on the state, and also different locations in a state. This may be because of differing accident risks, theft risks, weather conditions, repair costs, etc.
Generally, drivers under 25 years of age tend to be in accidents more frequently and thus have to pay more. Drivers between 50 and 65 are offered discounts on the same basis. Above 65, the rate increases again, and insurers tend to refuse insurance.
Since men under 25 years are three times probable than female drivers in same age, to be in an accident, the insurance will cost more for them.
California Auto Insurance Policy Is Required
A demand for regulations on insurance companies and premiums has been rising. Proposition 103, a sweeping 1988 insurance reform initiative, requires that a driver be charged premiums based on their driving ability and past record rather than their neighborhood. Your driving record, and daily mileage should determine more than your neighborhood if the regulations are affected.
Such moderation increase the level of competition between other companies looking for business, leading to the customers enjoying lower rates, and other discounts. Apparently vehicle insurers are not lowering rates, leaving many without insurance. With the state being so large its hard to know exactly how many drivers without legally required cover. However, reports suggest that the numbers are falling.
1/5 Without Auto Insurance Policy in California
Nearly one-fifth of drivers are without a California auto insurance cover according to state approximates. They have a tendency to be reckless, and drive unreliable cars. In California, large number of two car accidents are caused by uninsured or under-insured drivers. The state has an estimated 26 million drivers uninsured according to The Insurance Research Council, or the IRC. To protect drivers in cases of accidents caused by such drivers, there exists an Uninsured Motorist Policy which would be a good addition to any coverage arranged.