Smart Auto Insurance Blog

California Auto Insurance quotes are lower if you qualify for a special program that can get you affordable auto insurance.  According to the article “State Program Helps Connect Drivers With Low-Cost Auto Insurance” by Steve E. Swenson found on bakersfield.com says that the program offered in Kern County since 2006 is saving eligible drivers money.

The program is called The California Low Cost Auto Program and it offers coverage limits of $10,000 per person, $20,000 per accident, and $3,000 for property damage for as little as $254/year.  Quotes on auto insurance in California can be pricey and tickets for not carrying auto insurance can be extremely expensive, up to $786 according to court officials.

To qualify for the program applicants must be 19 years old or older, have a license for 3 years continuously, and have no more than 1 at-fault accidents, or 1 point for a moving violation in the last 3 years.  California Insurance Commissioner Steve Poizner believes the program needs to be supported, especially during the tough economy and high rate of unemployed drivers.

There will be a voter initiative on the June 2010 ballot for Californians aimed at giving discounts to drivers who have had insurance for a long time according to the article “Californians To Vote On Auto Insurance Persistency Discount” by Patricia-Anne Tom on insurancejournal.com.  This discount would apply even if Californians switched carriers confirmed by the Secretary of State.

The Continuous Coverage Auto Insurance Discount Act will mean lower California auto insurance quotes for many but it’s facing criticism by consumer groups because the act will penalize drivers for not having previous auto insurance coverage.  The article says that the measure would legalize surcharges on auto insurance and penalize good drivers for accidents that weren’t necessarily their fault.  The group believes it could ultimately lead to more uninsured drivers on the road.

Kathy Fairbanks of CalFAIR says this ballot proposal will reward over 80% of responsible Californians who keep auto insurance coverage which is required by law by making them eligible for this discount even if they switch auto insurance companies.  Currently, the discount cannot be offered to new customers.  California drivers will be able to carry this discount with them if they choose to shop around for better rates and switch insurers.

Here’s an update on what to expect from California auto insurance quotes due to the proposed pay-as-you-drive program.  According to the article “Poizner issues final pay-as-you-go auto insurance regulations” there has been some headway on the proposal. 

California Insurance Commissioner originally proposed the pay-as-you-drive regulation back in September of 2008 and just this past Thursday issued the final regulations which will allow insurance companies to offer rates based on the actual miles driven. 

Once the new regulations go into effect, insurers will be able to offer a mileage program instead of, or in addition to, current estimated mileage programs.  The hope is that the regulation will save California drivers money, and cause people to drive less which will in turn reduce emissions and reduce California’s dependency on foreign oil.

Residents may be in for a surprise when they obtain their California auto insurance quotes.  According to the article “State considers revised mileage-based auto insurance” on Central Valley Business Times’ website there is a new draft of pay as you drive regulations that has recently been released.  This revised plan may cause auto insurance quotes in California to consider how much a driver is in the car when determining the cost of a policy.  This has been in the works for months, and is backed by Insurance Commissioner, Steve Poizner. 

This article states that Poizner believes the pay as you drive concept is a cutting edge program which will create motivation for California drivers to drive less.  This will eventually lead to lower auto insurance costs, less pollution in the air, and less dependence on foreign oil. 

Some are concerned about the intrusion on privacy that the pay as you drive might create.  The Electronic Frontier Foundation says the original regulation would allow auto insurance companies to install electronic devices into their policy holders’ cars to track how much they drive.  It will also track a variety of other information such as location and seat belt wearing.  The revised plan will prohibit black boxes to track location.  Companies will use odometer readings and estimates from the policy holder as well.  It’s still to be determined how this new regulation will all pan out in the end.

Good news for California auto insurance policyholders with USAA.  USAA Auto Insurance announced that it is reducing their auto insurance rates by an average of 7% in California according to an article on insurancejournal.com. 

USAA auto insurance is the tenth largest auto insurer in California insuring about one million automobiles. According to the California Department of Insurance, this covers approximately 3.5% of the auto insurance market. 

USAA California customers will save on average of 7% or about $104 per policy each year.  This totals to $47.6 million under the newly approved rates.  These auto insurance rates will apply to policies that are renewed or written after August 5, 2009.