How is your auto insurance calculated in California?

Answer 1

Auto insurance is calculated in a number of different ways in the state of California. While some rating factors are obvious, others are not. The first thing considered is your vehicle's rating and symbol. Most drivers think just because they have an older car their premiums will be lower. This is not always true, because some older vehicles have higher symbols. A symbol is determined by how often vehicles are in accidents, how much damage they cause, and how much they cost to repair. If an older vehicle is known to cause a lot of damage it will have a high rating.

The drivers on your policy are also considered. The number of years of driving experience each driver has, if they have claims, and if their have tickets are all rating factors. If you have nothing in the past 3 years, you will qualify for a CA Good Driver Discount.

Vehicle Usage is another factor that is overlooked. Insurance companies rate for pleasure, commute or business use. Pleasure usage offers the lowest rates because it poses the least risk. You will also be rated based on annual mileage. Drivers in lower mileage brackets will be rated lower because they are on the road less and pose a smaller risk than those who drive over the average annual mileage in the state.