Cheap California Auto Insurance | How California Insurance Companies Calculate Premiums

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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