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Simple Guide to Auto Insurance in California

March 7th, 2009

Legal Requirements

Bodily Injury Liability: $15,000/$30,000 Limit
Property Damage Liability (PDL): $5,000 Limit

*For automobile assigned risk plan drivers, the requirements are $10,000/$20,000/$3,000 Limits

A Tort system is followed in California. This means that someone must always be found at fault. Responsibility for damages will be held by the person at fault and their auto insurance company. Particulars of this system can differ by state and you should check with your local DMV office for exact rules.

California does not require it, but if you’d like increased coverage, you can choose to get Uninsured/Underinsured Motorist Bodily Injury coverage on your california auto insurance policy. This coverage will protect you against personal injury caused by an underinsured motorist.This can be very worthwhile coverage if you end up being involved in an accident with this type of person.

The average auto insurance premium for residents in CA was $950 in 2003; the national average in the U.S. was $914. Some people think the state and auto insurers set the rates, so they never compare insurance quotes for better rates. Insurers segment their rates differently so everyone’s rate will be different with each insurer. You have to compare current rates to see if you are saving money. Many auto insurance sites help you find the competitive rates and lower prices available in California, so average Californians can get a lower rate on their auto insurance.

2007 had the first decrease in insurance rates since 1999. 2007 had a .5% to 1% decrease in auto insurance rates from 2006. In 2009, average costs are expected to slowly increase once more! Insurance sites recognize that the only way to save is to contact an insurance agency. These types of auto insurance sites use advanced technology to let you find the least expensive quotes

In a large state like California, changing demographics cause rates to change over the years. If you don’t keep an eye on your rates and don’t compare current auto insurance quotes, you could see your auto insurance rates get more expensive like they did from 2000-2002. In those 3 years, the average auto insurance rates increased almost 24%!

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