There’s no single price for car insurance in California. Every insurer files its own rating plan with the California Department of Insurance, and the department must approve it before the company can use it. Proposition 103, passed by voters in 1988, sets the ground rules for those plans.
The three factors that matter most
California insurers must base your rate mainly on these three factors, in this order of importance:
- Your driving safety record. Tickets and at-fault accidents typically raise rates for three years or more, and a DUI can affect them for much longer.
- The miles you drive each year. A long commute means more time on the road and usually a higher rate. If you drive less, make sure your quote reflects it.
- Your years of driving experience. Newer drivers pay more, and rates usually drop as you gain experience.
Optional factors carriers can use
After those three, insurers can weigh a list of optional factors approved by the state, including:
- Where your car is kept. Insurers price by area based on claims in each ZIP code, so two neighborhoods in the same city can be priced differently.
- Your vehicle. Repair costs, theft rates and safety ratings for your make and model.
- Your coverage choices. Higher limits cost more, and a higher deductible lowers your premium.
- Discounts such as multi-car, good student and completing a driver training or mature driver course.
What California insurers can’t use
California doesn’t allow auto insurers to use your credit score or a credit-based insurance score to set your rate, and gender can’t be used either.
Why quotes differ so much
Every carrier weighs these factors differently, so the same driver can get very different prices from different companies. That’s the main reason comparing several carriers at once usually finds a lower price than shopping one company at a time.