In California, you are required, as a driver, to have car insurance under the law. Unfortunately, different kinds of unexpected incidents happen daily, and it’s a good idea to be prepared for these situations. This article is here to help you understand car insurance better and will guide you to find the best car insurance in California.
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Understanding Car Insurance in California
All drivers in California are obligated to carry proof of insurance in case they are stopped by law enforcement. However, many drivers purchase insurance merely to fulfill their financial obligations, resulting in insufficient coverage.
Mandatory Minimum Liability Coverage
To ensure the safety of drivers and others on the road, California law mandates that drivers carry minimum liability coverage, which includes bodily injury liability coverage ($15,000 per person / $30,000 per accident), property damage liability coverage ($5,000 minimum), uninsured motorist bodily injury coverage ($15,000 per person / $30,000 per accident minimum), and uninsured motorist property damage coverage ($3,500 minimum).
Factors Affecting Car Insurance Rates in California
Driving Record and History
A young person who just started driving will pay higher rates than older drivers. Teenage drivers are three times more likely to crash than older drivers which makes car insurance companies charge them more. This means that older drivers will pay less than younger, less experienced drivers in most cases. Furthermore, if you have speeding tickets on your record, your insurance cost will be higher – rates can increase 26-43% for a speeding ticket and an average of 31% after a crash.
Vehicle Year, Make, and Model
The best car insurance in California could be one of several companies that will consider the car model, record, and type of car you drive which will impact how your insurance cost is determined. Small and safer cars are cheaper for insurance companies, whereas luxury vehicles with high-end technology and expensive finishes are way more expensive.
Claim History
The best car insurance in California could be one of several companies that will check your claim history when deciding what rate to give you. At-fault claims will definitely cause you to have higher rates. However, having made multiple claims in the past is not very good for your rate with an insurance company. A high number of claims makes car insurance companies think of you as a high-risk driver which is why they would increase their rates.
Best Car Insurance in California
Below are some of the companies that are considered to be one of the best car insurance in California companies.
Geico
Geico is known for low rates and outstanding customer care. It is the second-largest car insurance provider in the U.S. and wrote over $37.4 billion in insurance premiums. Some of the pros for Geico insurance are that they have low rates for most drivers, high policy limits, and Excellent ratings. Some of the cons include fewer local agents than some companies and higher rates for drivers with poor credit or recent accidents.
Progressive
Progressive is the second most well-known car insurance provider, with an excellent reputation to go along with it. There are multiple aspects that make progressive insurance stand out from competitors. This includes a variety of coverage options and usage-based program discounts. Some of the disadvantages of having Progressive insurance are their average customer service ratings and that the snapshot program can raise rates for some drivers.
USAA
USAA offers one of the cheapest car insurance in California. Unfortunately, they only work with military active officers, veterans, and their immediate family members. If you qualify for these requirements USAA is worth looking into with affordable rates and excellent reputation. USAA stands out from other competitors because of its A++ financial strength rating. However, they are inconvenient for many people since they are only available for military members and their families. Also, they offer high rates for drivers with driving under the influence (DUI) convictions.
State Farm
State Farm is the most popular car insurance provider in the US. It’s also one of the top choices because of its combination of strong industry reputation, solid customer service, and widespread availability from local agents. What do they provide, you may ask? They provide excellent discounts for young drivers, A++ financial strength ratings, and local insurance agents spread across the U.S. Unfortunately, they offer Higher rates than competitors in California.
Full Coverage Car Insurance in California
Full coverage car insurance is a variety of extensive, wreck, and liability coverage that provides coverage for most scenarios, including impairment to your car from the weather, an at-fault accident, or striking an animal. Many think they carry “full coverage” on their car insurance policy. However, in fact, there is no such thing as full coverage auto insurance. A full coverage policy is typically one that includes several types of car insurance coverage that, as a whole, provide a solid level of protection in case of an accident.
What is comprehensive insurance? Comprehensive insurance is another type of physical damage vehicle insurance. It pays to restore or substitute the policy owner’s automobile after it is damaged by something other than a collision, such as hail, flooding, fire, falling trees or branches, theft, vandalism, or other covered events not caused by the policyholder.
The cost of comprehensive insurance in California depends primarily on two factors: the vehicle's market value and the chosen deductible. Higher deductibles result in lower insurance costs.
In conclusion, this article offers the fine print of what is car insurance in California like and what are the best car insurance companies in California. It also shows you that paying for car insurance can help you in many different ways like being secured in case you get into an accident. You can rely on the insurance company to pay for the damages to your car in many situations. Plus, it’s to your benefit to have car insurance for your safety and for the safety of others as well. Ultimately, choosing which car insurance company in California is up to you. You have to evaluate different insurance companies and plans and choose based on what you think is best for you. You can look at some of the car insurance companies we mentioned here when making your decision.
