Sep 23 2016

California Insurance Rates. Compare and Save.

#car insurance rate comparison

California Insurance BASICS

Regardless of where you live, chances are good you are going to need at least once type of insurance. Most people have multiple policies, including auto and home as well as health or life. If you live in California, you’re probably used to a higher cost of living. However, California insurance rates are typically lower than many of the other states. This is good news for most residents of the Golden State. Even better news is that you can still save money on your rates if you know California insurance basics so you don’t over or under insure.

  • Homeowner/Renters Insurance. If you own a home in California, homeowners insurance is required. If you rent, it is strongly advised in order to protect your personal belongings. The average rate of homeowner insurance in California as of April 2010 was $710 a year. This may sound like a lot, but it’s actually pretty affordable when you consider the number of natural disasters and risks that are associated with the state. With that in mind, it’s important to know that basic homeowner insurance policies do not cover flooding or earthquakes; these are special policies that must be purchased separately. If you live in an area of the state that is prone to flooding, wildfires, or earthquakes, consider additional coverage.
  • Health Insurance. This type of insurance is not required by law, but it is essential; one serious accident or hospitalization can end up being tens of thousands of dollars in medical bills. High medical bills are one of the top reasons Americans file for bankruptcy, but this can be avoided with health insurance. Most Californians will get their health insurance through their employers, but if you are unemployed or self-employed, there are still options for affordable health care. California insurance rates for health care vary on your deductible, type of coverage, family members, and so forth, so it’s a good idea to compare rates and find the cheapest options.
  • Auto Insurance. Unfortunately, California insurance rates for automobiles are the fifth highest in the nation. Risk factors in California like a high population, higher than average number of traffic deaths, and auto theft make it expensive to insure your vehicle. Required coverage in California includes bodily liability of $15,000 per person or $30,000 per accident and $5,000 for property damage. These are only the bare minimums, however, to legally drive. It’s also a good idea to get comprehensive coverage to cover repair costs to your own vehicle, as well as underinsured coverage in the event you are hit by a driver without insurance.

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