What Is Auto Insurance California?

Auto Insurance California is a type of insurance that covers individuals against losses that could arise from vehicular accidents. This type of insurance covers policyholders from a collision and comprehensive damages. In addition, it can also cover the liability of the insured if the insured was held legally at fault for the accident.

The auto insurance policy is mandatory insurance throughout California. Every year in the states of California, there are at least 1 million vehicular accidents that take place in different probable locations in California. Furthermore, these cases of accidents, cause a high fatality, that reaches over 22% of the accident rate. In addition, almost half of them procured an injury due to the accident. Furthermore, these accidents also resulted in massive property damage throughout California.

Auto Insurance California

How Much Is Auto Insurance In California?

A typical auto insurance policy usually ranges from $1000 up to $7000 per annual premium. However, policy premiums vary greatly on the deductible rate the policyholder chooses. As well as, the minimum limit the driver must purchase, based on their location. Different locations in the state of California require different limits, this is for the reason that some locations in California have a higher injury rate due to vehicular accidents than the other cities.  Also, the use of the vehicle, if the vehicle is for business use this could generally procure a higher premium rate — rather than the vehicles, that is for pleasure use or for going to work only. There are other factors to determine the cost of an auto insurance policy; these factors are vehicle-related factors and driver-related factors. Additionally, auto insurance rates vary depending on the insurance carrier, on which the policyholder purchases its auto insurance.

Coverage Of Auto Insurance California

Auto insurance policy is a protection to every driver throughout the state. This could cover the driver from unexpected losses that could arise on the road and from other covered losses.  Here we will give you the list of coverages your car insurance policy can provide you.

This coverage covers the cost of repair to the vehicle of the insured, if the damages are due to collision with other vehicles. In addition, it can also cover the damages to the car, if it is due to colliding with other objects and the overturn of the vehicle. To give an example, suppose that the insured is parking his vehicle in a parking area near the city. However, the insured didn’t notice the lamp post near the end of the parking area and accidentally hit the post. The cost for the repair of the insured’s vehicle would be covered under this coverage of auto insurance.

This coverage of auto insurance covers the driver from comprehensive losses or losses other than collision. This coverage pays for the cost of repair of the insured and reimburses the insured if the car procures a totaled loss. It can cover the damages that are due to theft, vandalism, fire, earthquake and animal damages. In addition, it can also cover other damages that are listed on the declarations page of the insured. For further illustration, suppose that the vehicle of the insured is parked in one parking area near his house. Suddenly, a bear appeared and broke the windshield of the insured’s vehicle. The cost for the repair of the windshield of the vehicle would be covered under this coverage.

Liability coverage is composed of two components, here as follows;

Bodily Injury

This covers bodily injury of the third party person that the insured caused to others. This could cover the insured for the cost of treatment of the injuries of the third party person. In addition, this could also settle claims that a third party person might file against the insured.

Property Damages

This could cover the liability of the insured if he causes damage to the property of others. It could cover the cost of repair to the property of the third party person. In addition, this could also cover the legal obligation of the insured if a third party person files a legal claim against the insured.

 

Uninsured

This could cover the insured if he caught an accident and the person at fault disobey the law by not carrying liability insurance.

Underinsured Motorist

This coverage would cover the insured from an accident if the person at fault carries liability insurance — however, is not enough to cover all the expenses the insured. For further illustration, suppose that the insured caught himself in an accident, whereas the person at fault carries liability insurance — however, the cost for the repair of the car of the insured exceeds the liability limits of the third party at fault. The difference between the liability limits of the party at-fault and the cost for the repair of the property of the insured — would be covered by the policyholders auto insurance policy. 


Factors That Can Affect The Cost Of Auto Insurance Policy

Driver Experience

Experienced drivers tend to have a lower premium rate than inexperienced drivers. Insurance providers rate drivers as to how many years the driver has been driving on the road. Consequently, if the driver’s experience on the road is less than 3 years, the insurance carrier will definitely charge the driver with a higher premium rate.

Experienced drivers tend to have a lower premium rate than inexperienced drivers. Insurance providers rate drivers as to how many years the driver has been driving on the road. Consequently, if the driver’s experience on the road is less than 3 years, the insurance carrier will definitely charge the driver with a higher premium rate.

Age

Drivers under the age of 25 years old or youthful drivers are charged with a higher premium rate. For the reason, that younger drivers are more reckless than adult drivers. In addition, elderlies are also charged with a higher premium rate due to their slower reflexes and other medical conditions.

Drivers under the age of 25 years old or youthful drivers are charged with a higher premium rate. For this reason, younger drivers are more reckless than adult drivers. In addition, elderlies are also charged with a higher premium rate due to their slower reflexes and other medical conditions.

Average Auto Insurance Rate By Age

Age Rate
20's $2,400.00
30's $1,600.00
40's $1,500.00
50's - 60's $1,440.00
70's $1,600

Driving Record

Insurance carriers can see the driver’s risk of losses through their driving records. If the driver has been convicted due to driving while under the influence of alcohol, the carrier would definitely charge the driver a higher premium rate. Average Auto Insurance Rate By Driver’s Driving Record.

Insurance carriers can see the driver’s risk of losses through their driving records. If the driver has been convicted due to driving while under the influence of alcohol, the carrier would definitely charge the driver a higher premium rate.

Average Auto Insurance Rate By Age

Record Rate
DUI / DWI (driving under the influence/ driving while intoxicated) $4,689.00
Over Speeding $2,766.00
Reckless Driving $4,689.00

Martial Status

Based on the statistics, married drivers are more responsible drivers than a single driver. In addition, unlike single drivers, married drivers tend to stay at home during weekends rather than going out with friends.

Based on the statistics, married drivers are more responsible drivers than a single driver. In addition, unlike single drivers, married drivers tend to stay at home during weekends rather than going out with friends.

Average Auto Insurance Rate By Marital Status

Policy Rate
Bodily Injury Liability Coverage $15,000/ $30,000 (per person/ per accident)
UM/ UIM Bodily Injury Coverage (per occurrence) $15,000/ $30,000 (per person/ per accident)
UM/ UIM Property Damage Coverage $3,500 minimum
Property Damage Liability Coverage $5,000 minimum

Minimum Required Coverage In California

Law of California requires every driver in the state to purchase an auto insurance policy with the following coverage limits.

Law of California requires every driver in the state to purchase an auto insurance policy with the following coverage limits;

Policy Rate
Bodily Injury Liability Coverage $15,000/ $30,000 (per person/ per accident)
UM/ UIM Bodily Injury Coverage (per occurrence) $15,000/ $30,000 (per person/ per accident)
UM/ UIM Property Damage Coverage $3,500 minimum
Property Damage Liability Coverage $5,000 minimum