Best Auto Insurance Rate Factors To Watch Out For

2007-03-08 10:33:40

( Automobiles )



Auto insurance rates are based on many factors: age, sex, driving history, car mileage, car usage, car model and year. It can include your credit record. One major factor that determines the best auto insurance rate, especially for car insurance California companies, is your place of residence.

Auto insurance California companies are concerned about where you keep the car that you’re insuring. Different areas pay different rates because car insurance California companies gauge the risks of collision damage repair, auto theft incidence and hospital costs. The insurance companies also pass on to you the cost of accidents in your area involving uninsured drivers, as a government insurance office study has found that almost 28 percent of all California drivers are uninsured.

For a long time, car insurance CA companies have used your postal zip code as the primary factor in calculating individual insurance rates. The auto insurance California industry executives believe that geographic location is the best predictor of whether theft or accidents may occur.

Consumers like you contend that best auto insurance rate should not be done by zip code rate setting but by evaluating your driving safety record, length of driving experience, and annual mileage. Zip code rate setting lumps you and your neighbors in an area into one insurance risk profile – which, consumer groups say, is not fair.

Recent developments in auto insurance California regulatory environment have compelled car insurance CA companies to follow consumer groups’ recommendations. So you can expect some adjustments in your insurance premiums as companies try to come up with best auto insurance rate settings. If proposals come through, you may be in for a 20 percent good-driver discount proposed for those having a three-year clean driving record.

As auto insurance California industry adapts to new regulations concerning best auto insurance rate setting methods, you must increase your awareness of the relevant insurance rate factors. By doing so, you can adjust your individual risk profile to get favorable auto insurance rates when you buy from best auto insurance companies.


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