Along with taxes, California insurance rates are one of the things we hate to pay, but we do anyway. And just like taxes, we hate when they go up. We get the feeling that we’re paying for something that we won’t use. And like any other type of insurance, the more we need it, the more expensive and difficult it is to get. And if we come up with a situation where we have to use the benefits of our company policy, we find out that the rates immediately go up.
Nevertheless, in California, going around without a car insurance policy is not an option. The California Financial Responsibility Law requires you to have at least some basic insurance so that you can cover the damages you cause to third parties when you drive.
Knowing what factors affect the raise of auto insurance rates can help us avoid the raises somewhat. Here are some tips that can help you keep those insurance rates from going up.
- First of all, how hard it is to get your vehicle in California. In case your car is considered beyond repair, the harder it is to get a replacement, the higher your rates will be. This shouldn’t be a problem from most Californians, since they buy their cars locally, but it can be a problem for those who are into specialty cars.
- There is no point in issuing claims for minor repairs, unless you’re being sued. That’s why it’s important to be amicable and non-conflictive if you bump into someone else’s car. If possible, try to settle with the other driver without the intervention of your insurance companies. Minor repairs sometimes aren’t even worth the deductible fee and they will always raise your insurance rates (and the other driver’s as well, so you might want to tell him this).
- If you plan to let a teenager use your car, it’s better to add him from the beginning rather than risk having and accident and having your rates raised even more than they would have (or better yet, don’t let your teen drive).
- Do not leave lapses in coverage if you change from an insurance company to another. It will show as a coverage gap and it will reflect on you as a risky driver, raising your insurance fees. Always make sure that you let both companies know of your plans. Better yet, let both coverage plans overlap one day or week. It will be worth it.