Car Insurance California
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What Is Car Insurance?

California law requires drivers to buy minimum auto liability coverage limits. Car insurance is mandated for a reason—it protects you and others that you could find yourself financially responsible for some large bills you can’t afford to pay.
Car insurance is a type of insurance that protects drivers from covered losses. Losses such as injuries due to car accidents that happen during the insured’s policy period. Car insurance has liability coverage that covers the insured’s bodily injury and property damage done to a third party person. Also, this insurance has medical expenses coverage which covers the insured and his passengers. Car insurance would cover the cost of treating injuries due to a car accident. Car insurance also has a collision and comprehensive coverage which is designed to cover the damages to the property of the insured. (Optional)

How Much Is Car Insurance?

A typical car insurance premiums usually range from $1,200 up to $7,000 per year. However, premium rates are incredibly dependent on the use of the car. Furthermore, there are two types of car use, which is for pleasure use and for business use. Usually, cars or vehicles that are for business use tend to have a higher premium rate. Rather than the vehicles, that are for pleasure use or vehicles that are used by the insured for going to work only. In addition, the cost of car insurance varies from a lot of factors. Specifically, driver-related factors and vehicle-related factors. In addition, the cost of car insurance also varies on the location of the car. Furthermore, a premium rate also varies on which insurance carrier a policyholder procures his insurance policy.

Factors That Can Affect Car Insurance Rates

Individual’s Credit Score

One of the factors that can affect an insurance premium is the credit score of the policyholder.

A credit score is a determiner if an individual has the ability to pay his or her debts. In other words, it is a statistical number that evaluates the individual’s creditworthiness. Some insurance carriers use the credit score of the driver to determine the premium rate of the policyholder.

However, the State of California reprimanded to remove the credit score as a factor in determining a car insurance premium. Therefore, every driver will have the same insurance premium rate even though he or she has a low credit score.

Average Car Insurance Rates By Individual’s Credit Score Per Year

• 300-579 (very poor)  $1,649.00
• 580-669 (fair)  $1,649.00
• 670-739 (good)  $1,649.00
• 740-799 (very good)  $1,649.00
• 800-850 (exceptional)  $1,649.00

Age

The cost of car insurance varies greatly on the age of the driver. For the reason that a youthful driver tends to experience greater loss than an adult driver. In addition, younger drivers tend to drive farther distances and drive recklessly. So, younger drivers or drivers with the age of under 25 years old tend to have higher premium rates. Some insurance carriers also charge elderlies a higher premium rate. It is due to slower reflexes of elderlies that could cause them to decline their driving skills. Furthermore, the elderly’s vision changes and medical conditions are also a reason why some insurance carriers give elderlies higher insurance rates.

Average Car Insurance Rates By The Age Of Individuals Per Year

• 16 years old  $7,175.00
• 17 years old $6,853.00 
• 18 years old  $6,021.00
• 19 years old  $4,400.00
• 20’s  $2,400.00
• 30’s  $1,649.00
• 40’s  $1,600.00
• 50’s  $1,440.00
• 60’s  $1,408.00
• 70’s  $1,568.00

Take Note: Car Insurance premium rates vary greatly on the insurance carrier on which the policyholder procure his/her insurance.

Marital Status

The marital status of the policyholder is also a factor to determine the insurance rate of the insured. Based on a survey done by California law, married drivers are more stable than those who are single. In addition, married drivers are more mature and would rather stay at home with their family instead of going out with friends. In conclusion, single drivers include those individuals who are divorced and widowed. There is a minimal difference between the rates of single, married, and widowed individuals. However, some states do not use the marital status of an individual to rate an individual’s insurance premium.

Average Car Insurance Rates By Individual’s Marital Status Per Year

• Divorced  $1,649.00
• Widowed $1,582.00 
• Married  $1,576.00

Take Note: Car Insurance premium rates vary greatly on which insurance carrier the policyholder procure his/her car insurance policy.

Driving Record

Insurance carriers always see driver’s past violations as an accurate predictor of the driver’s risk in the future. With that being said, drivers with violations tend to garner higher insurance rates rather than those drivers with a clean record. Moreover, drivers with multiple violations, convictions, and at-fault accidents may be uninsurable. Therefore, the driver may or may not be able to procure car insurance from standard insurance companies. However, every driver should have car insurance. A much better choice for high-risk drivers is to procure insurance on a non-standard insurer.

In California, a driver’s first minor at-fault accident could leave the driver into an $862.00 penalty per year in car insurance premiums. Drivers that were fined for driving under the influence of alcohol, could leave the driver a $2,977 premium rate. Also, drivers that were convicted due to driving while intoxicated could leave them the same premium rate.

Convictions

It is important to know if an individual is ticketed with a traffic violation and being convicted of a violation.

Three types of conviction

Minor Convictions 

This violation includes convictions that are due to other types of moving violations such as over speeding and other traffic violations. As well as, violating the road signs, disobeying traffic lights, failure to display car plates and other minor violations. Convictions for minor violations such as fine and citations are not considered as a criminal offense.

Major Convictions 

This violation of the law includes convictions that are due to driving under the influence of alcohol or DUI. As well as, Driving while intoxicated or DWI is one of the major causes of fatal accidents in California. To give an example, convictions due to involvement in an at-fault road accident and fail to stop for investigation. As well as, homicide and physical assault on other drivers due to road rage is also a major conviction. Furthermore, driving with a revoked and suspended license is also considered as one.

Administrative Violations

Administrative violations are those technical violations such as failure to bring his or her license. As well as, failure to wear a seatbelt.

Average Car Insurance Rates By Drivers Violations or Driving Records

• Driving Under The Influence and Driving While Intoxicated (DUI/DWI)  $4,689.00
• Reckless Driving  $4,689.00
• At-Fault Accident ( greater than $2000)  $2,676.00
• Over Speeding (16-20 and 20-25 mph limit)  $2,324

Auto Insurance Rates By Coverage In California

What a policyholder pays for his or her monthly premiums depends on many factors that are listed above. However, premiums differ greatly on what coverages the policyholder procures and add to their policy. Furthermore, if the insurance policy has a liability coverage as well as lower deductibles, it usually gets a higher premium rate.

Coverage And Its Annual Premium Rate

(bodily injury per person/ bodily injury to all person/ property damage)

• $100K /$300K / $100K – Liability Only (bodily injury per person/ bodily injury to all person/ property damage)  $802.00 annual premium rate
• $100K/$300K/$100K  – $1,000 Comprehensive/Collision   $1,527.00
• $100K/$300K/$100K – $500   Comprehensive/Collision   $1,710.00
• $50K/$100K/$50K – Liability Only   $718.00
• $50K/$100K/$50K – $1,000 Comprehensive/Collision  $1,443.00
• $50K/$100K/$50K – $500 Comprehensive/Collision (bodily injury per person/ bodily injury to all person/ property damage)  $1,626.00
• State Minimum – Liability Only  $573.00
• State Minimum — $1,000 Comprehensive/Collision  $1,297.00
• State Minimum — $500 Comprehensive/Collision  $1,481.00

Take Note: Car Insurance premium rates vary greatly on which insurance carrier the policyholder procure his/her car insurance policy.

If you get a high premium rate, think of comparing a quote from different insurance carriers. Here we can help you with that. Check our contact us page and call our affiliated agents for more information.

Why Do You Need Car Insurance?

Having car insurance is essential because it covers your expenses in the event of an accident that causes injuries and property damage. In addition, car accidents in California are almost the top cause of fatality in the state. According to the Annual United States, Roadside Crashes Statistics, nearly 35,000 people die every year due to road accidents. Moreover, it also causes almost a million injured and disabled individuals.

In addition, California law requires drivers to buy minimum auto liability coverage limits. Car insurance is mandated for a reason—it protects you and others that you could find yourself financially responsible for some large bills you can’t afford to pay.

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