Cheap California Auto Insurance

A resource for getting cheap car insurance in California

This site is a guide to finding cheap California auto insurance. We find articles on the web related to car insurance in California and compile them as a resource for you.

We make sure to find California laws set up to protect drivers from fraud and abuse by California auto insurers. Don’t be one of the people paying to much for auto insurance in california. Use these articles to educate yourself on your rights as a driver in the Golden State.

Here are some of the featured articles that will help you find the cheapest auto insurance in California:

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Pay-by-the-Mile Auto Insurance Update

The topic of pay-by-the-mile auto insurance in California rolls on with increasing momentum as new updates are revealed to the public.  This new form of auto insurance would allow motorists to buy their insurance in a way that is similar to how we commonly purchase fuel; a little at a time when needed.  It would allow drivers to obtain policies that more accurately fit their specific needs and requirements, eliminating over-charges while maintaining full coverage.  While the plan still needs more thought poured into it, the goals are simple:

  1. Offer drivers per-mile pricing
  2. The hopes that it could lead to residents of CA driving less (to cut costs on individual policies)
  3. Scale down the carbon footprint of auto pollution
  4. Reduce traffic congestion
  5. Reduce the number of auto collisions

The above goals would all be achieved by enticing California State motorists to drive less, based on the per-mile pricing.  This concept has been utilized in Texas, called MileMeter, and has been available since last year, offering six-month policies in increments between 1,000 and 6,000 miles.  CEO, Chris Gay, fully expects MileMeter to not only be available in California soon, but to become a successful model for others to follow.

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Fraudulent Insurance Agent & How To Do The Research

Leandra Delgadillo, 32, of Canyon Country California has been arrested for acting fraudulently as an auto insurance agent and is being held at the San Fernando Police Department on felony charges of fraud and grand theft.  Her bail is set at $20,000 and, if convicted, is looking at two years in prison.

This reminds us all that while researching the proper automobile insurance that is right for you, don’t stop at just the rates and liability.  Make sure to fully research the companies and agents that interest you.  Here are some tips:

How to Research Auto Insurance Agents

Auto insurance agents can help you with getting car insurance by contacting auto insurance company representatives to find an insurance policy, which is best for you. Car insurance agents sometimes work for a vehicle insurance group, which may be of further assistance in finding the best policy available. If you’re considering hiring an insurance agent to save you time by getting insurance quotes for you from many different companies, you can follow these steps to research your agents and choose the one that you feel will perform best.

Step 1: Ask for Contacts from Auto Insurance Agents

To make sure your insurance agent is contacting a good number of reputable insurance providers, you can ask for a list of the providers, which the agent has connections to. Look for a large number of fairly recognizable names on their list.

Step 2: Inquire about Auto Insurance Agents Prices

Hiring an auto insurance agent can be expensive, so you’ll want to make sure that whoever you choose is affordable and reasonably priced for the services they offer. A slightly more expensive agent may be worthwhile, which is up to you to decide when you take other considerations into account.

Step 3: Ask for Representation by Experienced Auto Insurance Agents

Auto insurance agents are sometimes inexperienced, since somebody who is new to insurance sales generally begins as an agent. Inexperienced agents may not know all the tricks of their trade yet. Finding an agent who works under the supervision of a reputable auto insurance broker may be a desirable option for you, or else you can ask for a resume of prior experience.

By following these 3 steps, you will be better informed about your options for auto insurance agents to make sure you’re hiring an agent who will work best for you.

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Why other uninsured drivers could cost you big time – even if you have auto insurance.

Did you know that getting in a car accident with an uninsured driver could cost you a lot of money – even if you have your own auto insurance? In a recent report by ABC News, as the economy continues to worsen, more drivers are driving without car insurance, even though it’s against the law.

Most people think this won’t affect them if they have their own insurance, but this isn’t the case. In order to be protected from uninsured drivers you need to elect for “uninsured motorist coverage” in order to be protected. Be sure to check with your auto insurance company and verify that you have this coverage. If you don’t it may be worth getting it. This could save you thousands of dollars if you’re ever hit by an uninsured driver.

To get more great tips and to see the full story, watch the video on ABC News, L.A.

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California Auto Insurance Coverage Limits

In order to be a legal driver in California, you must show financial responsibility by buying California auto insurance. This doesn’t mean you have to have the most expensive policy you can afford. In fact, if you understand what’s required of you, you’ll learn that even cheap California auto insurance can supply all the coverage you need.

Your financial responsibility when buying auto insurance is simple. You can satisfy all the legal requirements by purchasing automobile liability insurance. Even cheap California auto insurance plans cover the basics outlined by the California Department of Motor Vehicles.

These are the minimum limits of coverage you must buy according to Section 16451 of the Vehicle Code:

- Bodily injury liability minimum of $15,000 per person and $30,000 total for all persons per accident.

- Property damage liability minimum of $5,000 per accident

If you are caught driving without the minimum liability insurance in California you can be charged up to hundreds of dollars in fines for a first time offense. If you are involved in an accident – even if it’s not your fault – and you don’t have liability insurance, your license may be suspended. If you own a car you don’t use you don’t have to insure it, but you must surrender its current license plates and registration cards to the DMV.

As you can see, the California auto insurance requirements aren’t that strict. A good insurance company can provide you all the protection you need while staying within your budget. If you need more information on the state’s requirements you can contact your local DMV office or speak to a licensed insurance agent or broker.

Cheap California auto insurance doesn’t mean bad auto insurance coverage. Be informed – you can save money and still follow the law.

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California Offers “Good Drivers Discount” On Auto Insurance

In the current economy, it seems that the cost of everything is rising. Grocery prices, mortgage rates, and energy costs are all skyrocketing. You’ve probably seen your automobile insurance costs continue to go up while your income stays the same. But you can’t just decide to go without coverage on your car, even if you think you can no longer afford California auto insurance.

California recognizes that car insurance rates can be expensive for the average driver. That’s why the state has implemented the “Good Drivers Discount”, which is offered to all California drivers who meet some simple requirements.

How do you know if you meet these requirements? It’s easy: California offers you the Good Drivers Discount if you have had a driver’s license for three or more years, have not been determined to be at fault in any fatal accident, and have no more than a one point charge on your driving record.

You probably already deserve lower priced car insurance. It all comes down to the fact that if you are a good driver, you can qualify for cheap California auto insurance. And that’s a good thing, no matter how bad the economy may be.

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How California Insurance Companies Calculate Premiums

Auto insurance premiums are partially based on three major factors: how long the driver has been licensed, the number of accidents or traffic tickets the driver has received and an estimate of how many miles driven.

There are secondary factors that affect the premium, the most important secondary being the frequency and severity of claims in the driver’s area of the state. The amount of claims received by companies can cause the premium charged to vary widely. When shopping for cheap California auto insurance drivers must do their homework and compare companies.

In fact, comparison shopping is the the single best way to qualify for cheap California auto insurance. Maintaining a clean driving record decreases the premium drivers pay. Drivers can also save money by requesting larger deductibles and lowering the limits insurance will pay if there is an accident.

Insurance companies can raise premiums if the driver has been given traffic tickets or been involved in accidents. Since the premiums are based on driving experience, extra surcharges will apply based on type of ticket or accident. To sum it all up, the final cost of cheap California auto insurance premiums is in the driver’s hands.

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Know Your Auto Insurance Coverages

If you want to take advantage of the best cheap auto insurance in California, you need to be an informed buyer. If you don’t know the most common types of automobile insurance coverage, you may end up paying way too much for your car insurance or not buying enough to fully cover your vehicle. Become familiar with the following coverages before you purchase your policy.

Comprehensive coverage: This type of California insurance policy provides coverage for any direct and accidental loss of or damage to your covered automobile and its normal equipment, including but not limited to fire, theft or malicious mischief. It’s also the most expensive type of auto insurance, but will cover more of the costs to repair your car in cast of an accident.

Liability: This is the satisfactory coverage you will find under most cheap California auto insurance plans. It will pay for bodily injury and/or property damage to the other person’s vehicle that you become legally responsible for if you have an automobile accident. It won’t pay for damage to your own car.

Uninsured motorist bodily injury: This car insurance coverage assures that you and your passengers will be paid for bodily injury caused by an uninsured motorist who is found negligent, by a hit-and-run driver, or by a driver whose insurance company goes out of business or otherwise can’t pay out.

There are a lot of cheap California auto insurance policies out there, but they are not all equal. Make sure you purchase the right policy for your needs.

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What To Do After An Automobile Accident

Everyone knows that driving on California’s highways can be risky even with the best car insurance. There’s always a chance you could be involved in a costly traffic accident, so knowing what to do if an accident happens is crucial. Follow this advice to be sure that you’ll always qualify for cheap California auto insurance rates.

If There Is an Accident:

Immediately stop at the scene. (This sounds like common sense, but sometimes even good drivers get so upset after an accident that they feel they should run away. You don’t have to – that’s why you have car insurance!)

Check for injuries. If anyone is hurt, call 911.

Notify the police even if emergency service isn’t necessary. The police may not need to come to the scene, but most California car insurance policies require that you inform the police about an accident within a certain amount of time, especially if the accident is a hit and run.

Get the names, addresses, telephone numbers, and license numbers from all drivers. Write down all the license plate numbers and vehicle identification numbers from all automobiles involved.

Ask to see driver’s licenses and vehicle registrations to be sure that the information is accurate. Get all the names, addresses, and telephone numbers of passengers and witnesses.

If you can, take photographs of the positions of the cars, the damage to them and the entire accident scene.

If you can’t find the owner of a damaged car or property, write a note with your name and address and those of the drivers and owners of any other cars involved.

Notify your agent and/or your California auto insurance company immediately.

And don’t forget – if anyone is hurt or you think the vehicle damage exceeds $750, you must report the accident to the Department of Motor Vehicles within 10 days. If you don’t do this your driver’s license may be suspended.

We all want cheap California auto insurance to be available to us and to other drivers. Follow these simple rules and you’ll help keep insurance costs affordable for everyone.

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Pay As You Go Insurance Plan Proposed In California

Drivers could be offered a new and cheap California auto insurance in 2009 if they choose to take part in a voluntary “pay-as-you-drive” plan. Insurance Commissioner Steve Poizner has proposed regulation that would base the annual insurance rates on both on the exact number of miles driven and a “pay less if you drive less” model.

Insurance companies have been mostly supportive of the plan, but said they needed more details of the state’s proposal. The companies agreed that the plan would provide a “more accurate way to calculate insurance premiums based on customers’ having fewer accidents and claims for property damage and medical bills.”

It is estimated that two out of three households could see a reduction of approximately $276 per vehicle, putting cheap California auto insurance rates within reach. The plan would also help lower-income residents, since on average, they use their cars less than higher-income residents.

On the other hand, drivers who log more mileage than average could find themselves paying more under the plan.

Assemblyman Jared Huffman sponsors the proposed regulation, saying that if one third of California drivers took advantage of the plan it would be the environmental equivalent of removing 10 million cars off California roads.

GMAC Insurance Group, which offers car insurance in California as well as other states, reported that the out-of-state drivers who track their mileage using General Motors’ OnStar system have cut the cost of their premiums by 13% to 54%.

Currently, even cheap California auto insurance rates are usually based on the drivers’ own estimates of how much they drive (often estimated in error), as well as their safe driving records and years they have been driving. Pay-as-you-drive insurance policies are now available in 34 U.S. states and in Canada, Japan and Europe.

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The California Guide to Automobile Insurance

Did you know that if you buy an auto insurance policy from a California insurance broker that the broker is required by California law to give you a free pamphlet called the Consumer Guide to Automobile Insurance?

What’s in the pamphlet? The pamphlet contains five tips to help you buy auto insurance in California.

If your working with a California auto insurance broker, be sure to ask for the pamphlet. You can see the California Guide to Automobile Insurance here.

Some important highlights:

What is difference between an insurance company and an insurance broker?
The California Guide to Automobile Insurance outlines the difference between an insurance broker and an insurance company. An insurance company is an entity that provides an actual car insurance policy. If you make a claim, the insurance company will handle it.

An insurance broker is a third party that works with you and insurance companies. Many times insurance brokers in California try and help you find a better deal on your auto insurance by helping you get multiple quotes.

Most automobile insurance brokers charge a fee for their service. By law, california insurance brokers are required to disclose their fees to you. If your working with a broker and you have bot seen the fees associated with the service, you should ask to see them asap.

Another important law on broker fees: To charge a broker fee, a broker must have you sign a broker fee agreement, and must give you a special broker fee disclosure. You should request copies of both of these documents.

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How to compare car insurance quotes in California

Unfortunately, there is no standard cost for car insurance in California. While some insurance companies are being forced lower rates, there is still a wide range of costs for the same plan among different insurers.

According to the L.A. Times:

“Even when you eliminate the real dogs, however, you’ll still find a huge range of prices for what is essentially the same insurance. That’s because some companies prefer not to write certain types of insurance in certain areas, and price accordingly. Insurers also know that there’s a huge inertia factor–not as many consumers shop around as they should.

That’s why a married couple in Burbank with a good driving record might pay $2,144 a year for standard coverage from the Auto Club of Southern California, while the same policy from State Farm might cost $2,958 (these figures are from last year’s California Department of Insurance premium survey). Geico, meanwhile, was charging $4,372. All three companies have good reputations for customer service and for paying claims, but the couple who go with the Auto Club could save more than $2,000 a year.”

With ranges like that, comparing insurance costs between California companies is a must. So how should you go about comparing?

Compare apples to apples
This seems quite obvious, but many people compare different plans without realizing. Make sure that your insurance coverage matches from plan to plan.

Get at least three auto insurance quotes
The more quotes you get, the better chance you have of finding cheap auto insurance. Get at least three quotes. If you can get five, that’s even better.

Don’t just look at free car insurance quotes online
There are many sites that give instant free quotes online. But don’t base your decision off that alone. Call each of the companies to get a feel for their process, their customer service, and their call hold times. Sometimes low-cost car insurance can cost you in the long run (click to read why).

Ask around
Many people don’t do enough research before purchasing car insurance. One easy way to get info is to ask family, friends, and co-workers about the car insurance they use and their experience with their auto insurance companies.

Google it!
Before you are ready to buy, make sure to Google the company name of the insurer and see if there are a lot of complaints. Also check with the Better Business Bureau.

Check the list
Lastly, make sure the insurance company isn’t on the list of the worst auto insurance companies in California.

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Is there a downside to low-cost auto insurers?

Getting cheap auto insurance is always a good thing, right? It’s not an easy question to answer. The easy answer is of course it’s a good thing. What California driver wouldn’t want to save on car insurance?

But is there downside?

Think about it. If two California car insurance companies are offering you the same exact coverage, but one company’s premium is $500 more, what causes that company to raise their prices?

It could be a number of things. Perhaps the cheaper company doesn’t have any insurance agents in California. Maybe it’s all done over the phone. That keeps their costs down and keeps your premium lower. But it also means that you can’t meet face to face with an insurance agent and it may mean long hold times on the phone.

Perhaps the cheaper car insurance company is willing to make less of each policy in hopes of getting more people to use them for their cheaper rates. But maybe a company like this has to worry more about their bottom line since they are making less off your insurance policy. Maybe they will be more likely to fight you tooth and nail on minor claims.

As you can see, getting low cost car insurance in California could come with some tradeoffs. Keep that in mind when getting insurance quotes. Always make sure to shop around and compare rates from different companies in California. And don’t forget to ask friends any family about their experiences with their insurance companies.

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The 10 worst California auto insurance companies

When getting California auto insurance you should be concerned about more than just the cost of your auto insurance policy. You should be concerned about the quality of the auto insurance company as well.

The California Department of Insurance released a consumer complaint study that shows the ratio of complaints per 100,000 policies or exposures. The data is all from 2006, so keep in mind that the auto insurance companies below may have improved or worsened in service since then. But the data should still give you a good idea of what California auto insurance companies you want to avoid.

The study is called the Justified Complain Study. It counts only justified complaints (determined by a third party).

Here is a chart showing the 10 most complained about insurance companies licensed to insure people in the state of California:

Rank

Company Name

2006 Approx. Exposure Count

Justified Complaint Ratio

Number of Justified Complaints

1

AMERICAN INTERNATIONAL INS. CO. OF CALIF., INC.

72,078

34.7

25

2

LINCOLN GENERAL INS. CO.

95,395

19.9

19

3

SAFECO INS. CO. OF AMERICA

152,767

10.5

16

4

INFINITY INS. CO.

569,171

10.2

58

5

GRANITE STATE INS. CO.

326,227

10.1

33

6

METROPOLITAN DIRECT PROPERTY AND CASUALTY INS. CO.

103,798

9.6

10

7

UNITRIN DIRECT INS. CO.

46,188

8.7

4

8

FINANCIAL INDEMNITY CO.

86,099

8.1

7

9

WESTERN UNITED INS. CO.

94,150

7.4

7

10

ESURANCE PROPERTY AND CASUALTY INS. CO.

95,328

7.3

7

Keep in mind that there are California auto insurance companies with more complaints that do not appear on the list. This list only shows the most complained about companies relative to the number of policies they provided in 2006.

To see the list of all 50 insurance companies, click here.

The bottom line is that when your shopping for cheap California auto insurance, you also need to research the insurance company your purchase from. Poor service can end up costing you more in the long run.

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California auto insurance rates now based on driving record, not ZIP code

Until recently, getting cheap California auto insurance had little to do with your actual driving record and a lot to do with where you live. Sound unfair? California lawmakers agree.

In 1988 Proposition 103 was proposed to make California auto insurance rates based on your driving record, not your zip code. 18 years later, in 2006, Proposition 103 was passed. Insurers had two years to switch over to the new pricing system. Most took their sweet time. But the final deadline for the switchover was on July 14, 2008. Now, all California auto insurance companies must price your premiums based on your driving record.

The problem with the old method of pricing insurance premiums in California is clear. You could be a perfect driver living in a “high risk” zip code in souther California and paying more for your auto insurance that a driver who caused accidents in another zip code in northern California.

The new changes mean finding cheap California auto insurance has a lot more to do with your driving record than your location. Too bad it took 20 years for the Proposition to pass. But better late than never.

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