Finding auto insurance in California is a complicated process for some. With all of the different types of insurance coverage, driver statistics, and general information, auto insurance can easily become an overwhelming subject. However, if you take the time to research a little about the subject before you buy auto insurance, you’ll be much better prepared and less confused about auto insurance and what it means to you. California insurance rates are some of the highest rates in the country, but the state mandated coverage amounts are among the lowest in the United States.
Auto insurance in California only requires you to have coverage known as 15/30/5, which translates to $15,000 per person and $30,000 per accident for injury coverage, and $5,000 for property damage coverage. However, this isn’t a lot of insurance, and will likely not cover everything in the event of an accident. You should always consider purchasing higher coverage amounts. Although you might be worried about the cost of auto insurance, you should know that having more coverage might actually get you discounts or cheaper rates because you are better protected in the first place.
Auto insurance in California is calculated based on a variety of statistics that include age, gender, driving record, and even your credit rating. Statistically, younger drivers and men are more likely to have higher insurance rates because they are more of a risk to insurance companies. You might already have known this, though. What you may not know is that if you have a bad credit score, you might pay more for auto insurance, because statistics have shown that people who can’t manage their money are higher risk drivers on average. Although this might sound like a ridiculous way to determine auto insurance rates, you’re just a statistic to the auto insurance company and they determine rates as they need to, in order to protect themselves.
You can save money on your auto insurance in California by taking a few things into consideration. When buying insurance, you need to shop around and compare rates to ensure you’re getting the best possible deal. Also, you can ask insurance companies about discounts for good drivers, good students, multiple vehicle policies, safe vehicles, and more. You can even get a discount in California for taking a defensive driver course on your own free will. No matter what you do, you can save money on auto insurance, so you should take the time to see what’s available before you just buy the first policy you get offered.