There is good news for all the motorists in the state of California as 2011 will see another reduction in the rates and premiums for auto insurance policies. Apart from that, a lot of insurance agencies will also implement the pay as you drive option which will also reduce costs even further. According to statistics, currently the average insurance quote for a driver in California is $1143 per year. This is way below the national average, which is $1440, 20.6% more. This makes California a huge and thriving market so all insurance companies will be doing their best to slash their prices in order to attract more customers.
This drop in rates follows a trend that has been keeping constant in California over the last years. The $1142 average insurance quote is also down 11% compared to last year’s. Even so, it is a staggering 31% cheaper than it was back in 2009. The costs for insurance rates and premiums have been going down steadily for years and that is due to a number of factors. One of the most significant reasons why premiums are so low compared to the rest of the country is the decreased number of road accidents. Compared to 2005 that saw a total of 4304 accidents throughout the state, only 3075 accidents have been registered in 2009. That is a whopping drop of over 1000 accidents per year and the premiums reflect that. The low risk of an accident allows insurance companies to take better chances with their policies and decrease the rates.
Another motive why the premiums are getting lower and lower is the new technology found in cars, as well as the new measures used in the state to combat DWIs and DUIs. Cars are getting safer and safer which leads to less accidents. Also, better methods of detecting motorists that are driving while intoxicated also make the roads much safer.
One new addition to the way insurance companies deal with their clients is the Pay As You Drive method. This new technology allows insurance providers to provide premiums to their customers based on how they drive and the mileage they get, as long as they allow the companies to install monitoring systems in their cars that provide this information. Companies like the Auto Club of Southern California and State Farm Mutual Insurances already have implemented this new technology to great success.
This decline in accidents and reckless driving is the major factor contributing to decreases in premiums and insurance rates. Mercury Insurance already has announced that they will be cutting down their rates by 10% over the course of the year. Since California is such a coveted market for insurance companies because of its size and safety record, more insurance companies are expected to follow the same trend, if they want to remain a viable option for the motorists of California.