Reason For High Car Insurance Rates In California

Car Insurance Rates In California – California has the world’s 5th largest economy; it is famous for many Hollywood celebrities, like Arnold Schwarzenegger. The state has a huge collection of Jay Leno’s splendid cars which are worth more than $10 million. Due to this 37 million populations and an increasing number of cars there is a demand for car insurance companies. There is a lot of competition but still they have high rates due to many factors.

Reason For High Car Insurance Rates In California
Image :

Reasons for high insurance rates in California

San Diego, Los Angeles and San Francisco are populated cities and there is a lot of traffic congestion in these places, this is liability for many car insurance companies as;

  • There is high risk for drivers to commit accidents,
  • Huge number of people without insurance
  • And there is too much auto theft, etc.

Car insurance rates in california

The people in California have high risks and need insurance, but there is a competitive marketplace and customers can find affordable car insurance if they search for it.

Minimum car insurance requirements

According to the state policies the minimum car insurance requirements in California are as follows;

· $15,000 liability coverage per person for injury

· $30,000 liability coverage per accident for injury

· And $5,000 for property damage liability

Reasons for low car insurance minimum requirements

There are no good reasons for it, a small accident can cause the person around $10 to 420000 overnight hence the driver has to keep in mind other things apart from the minimum car insurance coverage rates.

Getting more car insurance coverage

The increase the car insurance coverage is simple and economical. Drivers usually get $100000 in coverage for the raise in their car insurance rates. The companies usually burden the people by demanding $300000 in coverage instead of $15000 which is set by the government.

Searching for car insurance

  • Following are some useful points to consider while finding car insurance in California;
  • Go for reputable and licensed companies,
  • Compare the companies on the basis of coverage and not premiums,
  • Find about the car insurance discounts and discuss with the company about discounts,
  • Before a final decision compare at least 3-5 quotes.

Cheap car insurance

The person should not only choose the company based on cheap monthly premium costs there are other things to consider. The person has to move around and search for more details.

Provider of car insurance in California

There are many companies which offer car insurance in California including Allstate, GEICO and State Farm, but there are many other which know the local market and requirements properly and according to state requirements.