Top 5 Factors That Affect Your Auto Insurance Coverage

Choosing the right auto insurance coverage is not an easy task. You may be deciding how much coverage is enough, or working out what drives the cost. Either way, several factors are worth understanding before you choose.

Which factors actually affect your auto insurance rate?

Are you confused about how to get coverage that would match your needs? If yes, then read on. Here’s a list of the top 5 factors that affect your auto insurance coverage.

Years of driving experience

Newer drivers generally pay more, and in California the reason is specific. Proposition 103 makes years of driving experience one of the three factors an auto insurer must weigh most heavily, alongside driving safety record and annual miles driven. Experience is what the rate responds to, and it accrues on its own. 

Everything cited on this page reflects the law as published at the time of writing. The Legislature and regulators revise these provisions periodically, and the current text is on the Legislative Counsel’s site.

Credit history, and why California is different

Credit is a common rating factor across much of the country, which is why national guidance usually lists it. California is an exception. 

Proposition 103 restricts the factors a California auto insurer may use, and credit history is not among them, so a California auto rate does not move with your credit score.

Driving history

This is the most influential factor affecting your auto insurance costs. Your driving history is a record of traffic tickets or accidents involving you. So you will also pay higher rates if you have multiple accidents or speeding tickets. 

Location

This factor works differently in California than in most states. Where you garage the car can be used, but Proposition 103 ranks it below the three mandatory factors, so it carries less weight here than national guidance suggests. Your driving safety record, annual mileage and years of driving experience come first, in that order.

Some states require you to have a certain amount of insurance before your license is legally valid. 

Rating rules under Proposition 103 and the Vehicle Code minimums are revised from time to time. The figures here are as published at the time of writing, and the Department of Insurance and the Legislative Counsel publish the current versions.

Your car model and year

Rates vary by make, model and year, because insurers rate from the loss history of that specific vehicle: how often it is stolen, and what it costs to repair or replace. A high-performance car generally rates higher on that basis. Adding comprehensive and collision raises the premium rather than lowering it, so the question is what the vehicle is worth against what those coverages cost to carry.

The factors that move your premium most

To find the perfect insurance for you and your family, consider the above-mentioned factors. That way, you can maximize your coverage.

What those factors add up to in dollars is covered in what car insurance costs in California. The vehicle you choose feeds into it before you buy, which is why pricing the insurance first occasionally changes the decision.

Payment frequency belongs on that list as well. We look at monthly versus annual premium payments and what each approach costs.

At Schneiderman Insurance Agency, we walk clients through their options and help them decide what fits. To learn more about how we can help you, please contact our agency at (818) 322-4744 or request a quote online. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. 

Disclaimer

This article is provided by Schneiderman Insurance Agency for general informational purposes only. It is not legal, tax, financial, claims, or coverage advice. We are licensed insurance professionals, not attorneys, accountants, or financial advisors, and nothing here should be relied on as a substitute for advice from a qualified professional in those fields. This content is general in nature and is not a review of, or a recommendation for, any individual reader’s specific insurance needs, policies, or circumstances. Insurance coverage depends entirely on the specific terms, conditions, endorsements, exclusions, limits, underwriting eligibility, carrier, and facts of each situation, and the actual policy language always controls. We do not guarantee any coverage, pricing, eligibility, underwriting approval, or claim outcome. Reading this article does not create an agent-client relationship. To understand how these issues apply to your situation, please review your own policy and speak with a licensed insurance professional, and consult legal, tax, or financial advisors where appropriate.