Why Is Auto Insurance Higher In California

WHY IS AUTO INSURANCE HIGHER IN CALIFORNIA THAN IN SOME STATES?

Car insurance is just one of those things motorists need to drive legally. That is unless they reside in Virginia or New Hampshire. However, most people reading this probably live in The Golden State. Here, coverage is required by law. When drivers first arrive in California and begin searching for auto insurance, they are likely taken aback by the quotes. Why? Well, because California’s rates are above the national average, that is why.

It doesn’t seem fair to consumers at times, but it is better to pay the premiums than get into trouble for not having coverage. For one, if a cop pulls a person over, they may issue them a fine. There is also the possibility of their car, truck, or SUV getting towed. Meanwhile, if a driver is involved in an accident without insurance, their vehicle may be towed as well. Fines will come their way too. The Department of Motor Vehicles can even suspend their license for a period.

Northridge and surrounding area citizens that want to avoid such mishaps should give our office a call. We work with various insurers and have numerous insurance products available. That means our team can help them find the right policy at the right price. Now, let’s take a look at some of the reasons why California’s rates are higher than in other places.

 

Vehicle Theft

This is not anything to be proud of, but California is in the top five when it comes to cars stolen per 100,000 people. Even if a person takes extra precautions, their vehicle could still be stolen. When there is a higher risk of car theft in an area, auto insurance premiums reflect it. Customers may be able to catch a break, though. They should talk to their insurers about programs for lowering their rates. For instance, policyholders might get discounts for burglar alarms, dashcams, and other security devices.

 

Driving Trends

It is no secret that Californians are always on the roadways. They head to beaches, amusement parks, and stores in their vehicles. Drivers also hit clubs and bars, taking in all that the nightlife has to offer. People travel between home, work, and school too. A list of places where people head in their cars can go on and on. The point is that a lot of driving occurs in The Golden State, and the more driving there is in a location, the higher premiums will be.

 

Densely Populated Urban Areas

Typically, people living in urban areas pay more for auto insurance than drivers residing in rural communities. One reason for that is that urban areas have dense populations, including those right here in California. Hence, if you stay in places like Los Angeles, San Diego, or Oakland, that could be why your premiums cost so much.

Contact us

Contact Panorama to get your quote today. Hopefully, the action will prevent you from feeling like you’re spending an arm and a leg each month on a policy.