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Frequently Asked Questions

Car Insurance

Is Car Insurance Affordable for Californians?

California drivers do pay more for their car insurance than other places in the U.S. The average cost for California drivers for the basic minimum is $53 per month. The national average is $47. When it comes to full coverage, the disparity is greater, with Californians paying on average $190 per month, compared to the national average of $148.

Does Auto Insurance Cost More Depending on Where You Live?

Yes. There are many factors that go into determining what you may pay for your coverage, and where you live is one of them. For example, the average full coverage rate for someone in San Diego is $188 per month. In San Francisco, it’s $233. And in Bakersfield, it is $180 per month. It all has to do with things like how much congestion there is (higher risk of claims for accidents), how much crime there is (higher risk of stolen car claims) and more.

Does My Credit Rating Count in My Policy Rate?

Not in California. It is one of a handful of states who have made it illegal for insurance companies to base their rates on credit scores.

I Loaned My Car to a Friend and He Got in a Wreck. Am I Covered?

Most likely. Of course, it depends on the circumstances but auto insurance typically follows the car. You should still be careful about lending your car out. If your friend is not licensed or gets into a wreck while high or drunk, your insurance claim may be denied.

Who Should I List on My Insurance Policy?

You should list anyone who may drive your car on a regular basis. Remember, only people with a driver’s license can drive legally in California.

Can an Illegal Immigrant Get Car Insurance?

In California, an illegal immigrant can get insurance if they have a driver’s license. Illegal immigrants can get a driver’s license through the “AB 60” law. They’ll need to provide proof of identity and California residency.

Why Did My Car Insurance Premium Go Up?

These rates fluctuate just as prices for most things go up and down. However, in the case of your insurance policy, you will see a rate increase most of the time if you’ve made a claim or your driving record has taken a hit due to your behavior behind the wheel. Other factors that may increase your rates include:

  • Changing the people who are on your policy, especially if you add a new driver or a teen driver.
  • Changing your vehicle.
  • Getting convicted of DUI and having to buy SR-22 insurance.

Does the Kind of Car I Drive Affect My Price?

Definitely. Your insurer will charge you less for a car that has a high safety rating and has readily available and cheap parts and service in case you file a claim. Cars that cost more to repair (or replace) and are more likely to be stolen or driven in an unsafe manner will cost you more.

Should I Purchase the Extra Insurance Offered for a Rental Car?

In most cases, your own insurance and the insurance that comes with the rental will cover you while you are using a rental car. Additionally, if you pay for the rental with a credit card, the card company may offer some coverage. There are some exceptions to that.

  • Business Travel: If you are traveling on a business trip and your employer doesn’t provide rental car insurance, you should check with your own personal policy to make sure you are covered. Some policies will not cover business travel.
  • Personal Effects Coverage: Your home insurance should cover your personal effects if they are stolen from your rental car. However, if you do not have home (or renters) insurance, you should spring for this if you plan to leave valuables in the car.
  • Comprehensive/Collision: If you do not have full coverage, you may consider getting the rental company’s collision damage waiver.