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California has a well-earned reputation for being an expensive place to live. At an average of $1,362 per annum as of 2011, California car insurance rates are higher the national average. It is certainly well above Idaho’s low of $875 per year. It surprises many to learn, however, that Maryland tops the average annual cost at $1,979.
Averages may be interesting, but you really want to know what your own insurance is going to cost. A lot of factors go into how insurance providers price individual auto insurance. Some of these factors you can control and others you can’t. The first factor to consider is how much coverage you are going to carry.
Drivers in California are required drivers to have a minimum of $15,000$30,000 in bodily injury liability coverage. You are also required to carry $5,000 in property damage coverage. Proof of this overage must be carried in the vehicle at all times. The chart below summarizes these requirements.
| Coverage | Requirements | Most Common |
| Bodily Injury Liability | 15,000/30,000 | 100,000/300,000 |
| Property Damage Liability | 5,000 | 100,000 |
| Uninsured Motorist Bodily Injury | Not required | 100,000/300,000 |
| Personal Injury Protection | Not Required | 2,500 |
| Medical Payments | Not required | 5,000 |
| Collision | Not required | 500 deductible |
| Comprehensive | Not required | 250 deductible |
If you look at the most common column in this chart, it shows that most people elect to carry insurance above the minimums. The reasoning is that insurance is there for a purpose other than keeping you legal. Insurance protects you from financial risks in an accident Costs for injuries and repairs continue to increase yearly.
An example of coverage to consider that is not required is what is called UI/UIM coverage. This provides protection should you be in an accident with a driver that does not have insurance or is underinsured. One other common coverage is comprehensive insurance. This provides payment for damage from causes other than an accident. Hailstorms, fire, even hitting an animal is the reason for this type of insurance.
Having only the minimum coverage is not always a wise way to save money. This will prove to be the case when you have an accident and find yourself with significant expenses. The challenge is to purchase insurance for all the coverage you need at the best price.
The idea of searching through the different insurance provider can be intimidating to a lot of people. The best place to start the effort to find affordable car insurance rates in California is with a good website like Californiacarinsurancerates.net. A service like this has already waded through thousands of pages of information to compare all the various coverages and rates. They even check things like towing and rental reimbursement options so you can make the best coverage choices.
Beyond the coverage you choose, your driving record is very important. Drive safely and avoid accidents, and you will save substantial costs. Remember the following speed limits for California.
| Speed Limits | ||
| Rural Interstate | 70 mph | 55 mph trucks |
| Urban Interstate | 65 mph | 55 mph trucks |
| Other Limited-Access | 70 mph | 55 mph trucks |
| Other Roads | 65 mph | 55 mph trucks |
For specific tips on saving money in major California cities, go to:
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