The state of California requires everyone who drives a vehicle to purchase car insurance. If you’re a new driver, or are renewing your insurance, there are a few things you should know. Read on to learn about what’s required, where you can find the best coverage, and how to choose the right insurance for your needs.
Teen drivers pay the highest premiums
Teen drivers in California are among the highest cost drivers to insure. While this is true of other drivers, the rate increases are particularly severe for teens. Adding a teen to your auto policy can increase costs by as much as 130%.
However, a good driving history can lower teen car insurance rates. In addition, many insurers offer discounts. These can include telematics programs. Telematics can help a company determine whether a teen driver is being a safe driver.
Other discounts for teen drivers may include the Good Student discount. This is typically around 10% to 15%. It is awarded for maintaining a B average or better.
Multi-car discounts are also available. Most insurers will reduce rates for multi-vehicle policies. Another option for teens is to add a teenager to the parent’s policy.
At-fault vs no-fault states
California is an at-fault state, meaning the driver who caused the accident is responsible for the other person’s injuries and property damage. If you are injured in an auto accident, you can file a claim against the at-fault driver’s insurance.
In an at-fault state, you can collect damages from the other driver proportionate to the amount of fault. This means that if you are 99% at-fault for the car accident, you can sue the other driver for 1% of the total losses. During the claims process, you must exchange information with the other driver, including their insurance information.
There are different fault laws in each state. For example, in California, you can file a claim against the other driver’s insurance for personal injuries, property damage, and medical expenses.
Mandatory by state
The minimum car insurance requirements vary from state to state. Some states only require liability insurance while others have mandatory personal injury protection. There are some notable exceptions like Florida. However, the majority of states have some form of mandatory car insurance. It is important to understand what you are signing up for before you buy.
In general, the minimum car insurance required by state is not enough to save you from being a victim in a car crash. If you do not have any, you will be liable for the damages and possibly have your license suspended. Luckily, some states allow you to forgo coverage for a fee. Depending on the state you live in, you may also be able to take out a cash deposit to offset the costs.
Rates vary by city
One of the best ways to save on your insurance is to shop around. The price of auto insurance in every city is different, and you should get quotes from more than one carrier.
Insurers determine premiums by examining risk factors and other rating factors. A good driving record, for example, is a great way to lower your premiums. However, tickets and accidents will always increase your rates.
For instance, a speeding ticket will increase your premiums by 35 percent, while a DUI conviction will increase your rate by nearly double. Fortunately, there are plenty of things you can do to keep your premiums low, including paying off your debt and maintaining a good credit score.
The cost of repairing your vehicle will also influence your rates. This is especially true in major metropolitan areas where repairs will be more expensive.
Wawanesa and Farmers have the best average rates
For drivers in California, the Wawanesa and Farmers have the best average rates for car insurance. However, they are not the only two insurers that offer great rates. You may want to check out another company if you have a bad driving record or have been in an accident.
The National Association of Insurance Commissioners (NAIC) tracks complaints about companies. Complaints are grouped according to the type of complaint, and most complaints focus on the claims department.
It’s important to shop around for the best rates. If you are a senior driver, your rate will be higher than a young driver’s. Also, check for any discounts offered.
For drivers with a good driving record, there are several other insurers to choose from. Mercury and National General are two options. State Farm also offers great rates. However, if you have a speeding ticket or other serious accident, you can expect to pay a lot more.
