Current Auto Insurance Trends In California

Having sufficient auto insurance is crucial for the protection of both you and your vehicle and helps offer you the peace of mind that you are covered from any financial loss in the event of an accident or theft. We have seen a recent rise in auto insurance rates here in California, and there are also several other shifts occurring in the current auto insurance market that are affecting the residents in the Golden State. If you are located in San Diego, California, and have questions about your auto insurance protection and costs, Windfall Insurance Services Inc. is here to help. Continue reading to learn more about the current auto insurance trends in California, and how they could impact insurance premium costs.

California Auto Insurance Basics

California does require all drivers to verify that they are financially responsible for damages that occur in an accident, typically in the form of auto insurance, and it is considered illegal to drive without it. Liability coverage intended to cover damages to another party’s vehicle if you are at fault during an accident is also required by the state. California has seen a recent increase in auto insurance rates, causing citizens to pay more for their insurance premiums for several reasons, including inflation causing an increase in the costs of labor and parts needed to repair a vehicle, an increase in poor driving behaviors that cause accidents, and an uptick in driving overall since the pandemic.

Factors That Are Affecting California Auto Insurance Policies

There are many other factors at play that are currently affecting auto insurance policies for California drivers. First of all, the state is experiencing restrictions on new auto insurance policies. New policies now have a ten to thirty day activation period, depending on the company, and policyholders will not have coverage until that activation period is finalized. If auto insurance policies are paid late, companies are now dropping them and not rewriting them afterwards. Therefore, it is very important to pay your policy on time and ensure that you respond promptly to any requests made by the insurance company. Additionally, some companies will no longer issue policies for certain Kia or Hyundai vehicles because of the recent rise in thefts of those particular vehicle types.

Saving Money On Auto Insurance Premiums

Even with the shifting trends in auto insurance, there are still steps you can take to save money on premiums. You can possibly receive a discount by bundling your auto and home or renters insurance, you can compare prices of different companies to find the best option, you can notify your agent if you drive fewer miles or maintain a good driving record to qualify for discounts, and you can change your deductible amount to help save money. If you have auto insurance questions in San Diego, California, contact Windfall Insurance Services Inc. today for a consultation.