If you are a driver in California, state law requires you to have a certain amount of liability insurance to operate on the roadway legally. Although liability insurance is the requirement, however, many Californians seek additional, comprehensive collision coverage to ensure that they are fully protected in the event of an accident. Unfortunately, finding affordable car insurance in California can be a challenge. Due to the high cost of living in the state, car insurance rates are typically higher than the national average.
However, if you’re looking for cheap car insurance in California, you’re in luck. There are a number of things you can do to reduce the amount you pay for coverage. Keep reading for some tips on how to lower your car insurance premiums in California.
Consider the car.
When considering a new or used car, it is important to think about more than just the cost of the car. You also need to factor in the cost of car insurance. If you are in the market for a new car, it’s important to take note of the risk that a particular vehicle might pose to the insurer. One of the risk factors that insurers consider when setting premium rates is the type of vehicle being insured. Cars that are cheaper to insure tend to be smaller and have less powerful engines. This is because insurers see these types of vehicles as less risky to drive and less expensive to repair or replace. As a result, you will pay higher insurance premiums for luxury vehicles and sports cars.
Additionally, cars that receive good safety ratings from the Insurance Institute for Highway Safety (IIHS) are typically cheaper to insure than cars that do not receive good ratings. If you are shopping for a new car and you are concerned about insurance premiums, you might want to consider the type of vehicle you choose carefully.
Raise your deductible.
Every insurance policy has a deductible that you must pay before coverage kicks in. In general, deductibles can range from $250 to $1500. One way to reduce your premiums is to raise your deductible. Policies that have a higher deductible usually come with lower premiums. For example, if you raise your deductible from $250 to $1,000, you could save up to 25 percent on your premium.
This is because the insurance company will have to pay less for a covered event. However, if you raise your deductible, it’s important to remember that you will have to pay more out-of-pocket if you have a claim.
Install a car alarm.
When shopping around for auto insurance, you might find that many insurers offer discounts for certain vehicle safety features. Things such as airbags and lane departure warnings installed by the manufacturer can garner a discount on your insurance premiums. These are features that help keep you and your car safe and reduce the risk to the insurance company. You might be able to able to reduce your risk and premiums even more by installing a car alarm system. The savings for an alarm system can range between 15 and 20 percent with most insurance companies.
Maintain a clean driving record.
One of the biggest factors that insurance companies consider when setting policy rates is your driving record. If you have traffic tickets or accidents on your record, you could see significantly higher rates than someone with a clean record. This is because the insurance company considers you a higher-risk driver once you accumulate traffic violations or insurance claims. One way to keep your car insurance premiums low is to maintain a clean driving record. Not only will your initial insurance rates be lower, but most insurers also offer a good driver discount that will lower your premiums even more if you maintain a good driving record.
Comparison shop.
One of the best ways to find affordable car insurance is to compare several quotes. By getting multiple quotes from different providers, you can compare rates and find the best deal for your situation. As discussed, insurance companies consider multiple risk factors when setting policy premiums. If you have several higher-risk factors, you will pay more for auto insurance. However, not all insurers weigh risk factors similarly. As a result, you can find various rates across different companies.
You should shop around for auto insurance to find the best deal and rate for your situation. Just like making any other major purchase, comparison shopping is the best way to save money. Be sure to include the same information for each quote so that you are comparing similar coverage options. As an alternative to getting quotes from different insurers, you can also look into comparison websites that shop for various companies for you.
There are a few things that drivers can do in order to lower their car insurance premiums in California. Some tips are to shop around for the best rates, be a safe driver, and raise your deductible. Overall, these tips can save drivers a lot of money on their car insurance premiums, no matter the situation.