Why Some Folks Fail to Save Money on Car Insurance in California

The average California auto insurance premium was $1,650 in 2009.  This is slightly below the national average, which is $1,735.  This doesn't necessarily mean your car insurance will cost exactly that amount.  It's just an average figure of what California motorists generally pay to insure their vehicles. 

Auto insurance providers in California consider many factors to come up with a premium for each individual.  There's no set rate for all drivers or vehicles.  So, someone seeking car insurance in California has every right to shop around, compare quotes and coverage types, and research several providers before buying.  But even with this entitled right, some folks still fail to secure an affordable rate.  Let's look at some obvious and not-so-obvious reasons why this misfortune occurs.

Failure to Compare

Sounds simple, but a failure to compare rates can cost the insured hundreds of dollars per year.  A simple online quote comparison can rend low or high premium quotes from various providers.
 
Let's look at an example:

Sally wants to insure her 2007 Dodge Caravan and is seeking the lowest quote.  She enters her information at a quote site and gets quotes from four providers.  She is 45 years of age, married, a homeowner, has a decent driver's record (but not perfect), still owes money on her vehicle and has a short commute to work (only ten minutes round trip).  She also lives in a suburb area where traffic is minimal. 

The providers give quotes, but there are vast differences.  One company caters to Sally because she is married, a homeowner, and has a short commute to work.  The quote given is $400 per quarter.  Another company usually caters to young, single drivers, and since Sally doesn't fit their status-quo, the premium is quoted at $550 per quarter.  Yet another provider offers a discount because Sally's credit score is great and because the company feels she is a stable, dependable driver.  The quote from this company is $385 per quarter.  Then of course, there's the company that expects perfection on the driving record, so they quote Sally $600 every quarter for having a blemish on her record!

As you can see in this example, the quotes are all different and they are based on what the car insurance provider considers to be its "ideal" customer.  Assuming it's a reputable company and financially stable, Sally should gather more information from the provider that quoted $385.  She might decide to compare this provider with the one that quoted $400 since the amounts are so close.

If Sally would have ignored the quote process and simply went with the first provider found, she might have ended up with a $600 premium instead of a $385 premium.  That's $900 more per year!

Failure to Familiarize One's Self with California Insurance

Another reason people fail to save on car insurance is they don't take time to read up on CA state laws and information.  The California Department of Insurance website provides a wealth of information about car insurance.  From tips on buying and choosing a provider to state law liability requirements, the Department goes to great measure to inform CA motorists.  At the site, you'll find tips, law facts, statistics, types of coverage available, facts about "proof of insurance," alternatives to buying an auto insurance policy, terminology definitions, etc. 

The Department's site also lists insurers in the state along with a telephone number and Web address for each, so you can easily contact various providers or visit their websites for more information.  Some of the top providers in the state of California include 21st Century Casualty Company, Allstate, Geico, Guideone Mutual, Fidelity, First American, Progressive, State Farm and Safeco.

If you're a senior citizen or have a very low income, the Department's site also provides information about low insurance premiums for special circumstances.  This valuable information might solve your car insurance woes if you simply can't afford the rates quoted by local providers.

Don't Forget Discounts

Some motorists don't realize how discounts can significantly lower their car insurance.  California providers may offer discounts for good driving history, certain age groups, homeowners, safety features on your vehicle, driver's courses, good school grades (for student drivers), and a good financial credit history.

Educate yourself on how to maximize your auto insurance savings in California.  Don't fall into the same trap as others have in the past and fail to take these simple, money-saving steps!

by CheapCarInsuranceCo.com

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