California Auto Insurance Basics

Out of the fifty states in America, California presents the biggest auto insurance market for companies, a bit of info that gives consumers a huge edge and a lot to think about before purchasing an insurance plan. California auto insurance premiums are constantly fluctuating so understanding the trends behind the prices is a key to saving money when shopping for quotes.

Between 1989 an 1998, California auto insurance rates declined by 4 percent, while the national average climbed by a whopping 38.9 percent. Some major reasons for this were Prop. 103, which forced insurance companies to show their accounts to justify rate hikes, as well as improved highway safety, a crackdown on insurance fraud, and greater seatbelt use. Despite this, monthly premiums remain high in the state and trends show premiums have been going up.

Purchasing auto insurance is mandatory in California – if you don’t have insurance on your vehicle, your vehicle can be impounded at anytime. Although the data is changing constantly, general rates for California auto insurance range from the high $1200′s to $1425 and above. Don’t freak out at these numbers just yet, because they represent premiums based on a 12-month policy, not monthly payments.

When purchasing car insurance, you will often see numbers displayed as 15/30/5. These numbers represent injury liability and property damage limit requirements. In California, the minimum requirements are the same as used in the example: $15,000 injury/death coverage per person, $30,000 injury/death combined, and $5000 property damage.

These limits reflect the lowest legal requirements for auto insurance in California, but it is generally recommended that you evaluate your driving habits to ensure that these can meet all financial responsibilities in the event of an accident.

Shopping for auto insurance in California is easy, considering that it is one of the largest car insurance markets in the world. Start by taking your search online to get quotes from the bigger names such as State Farm and GEICO. These services all provide free instant quotes online. Once you have a few quotes, try visiting locally base companies in person. The California auto insurance market is extremely competitive, so getting a better deal on your monthly premium, or having a few extra bonuses thrown on your deal is almost guaranteed. In most cases, you can get a quote without needing to provide more than basic personal information, and sometimes won’t even need a credit check.

If you all income eligible, California offers a low cost auto insurance program designed specifically for low-income good drivers. Check for eligibility or Contact state department of insurance for details. This program allows you to register and drive your car without worrying about the hassle of insurance premiums reducing your monthly paycheck to nothing.

As the market is so huge in California, there is a seemingly endless supply of businesses from which to purchase insurance. If you keep in mind the competitive nature of the industry and use it to your own advantage, you can create some real savings for yourself. California auto insurance rates are always shifting, so assaying on top of the trends is another great way to save money.