Should I Raise My Car Insurance Deductibles in California?
Reader’s Question:
Would a higher car insurance deductible be more ideal in California for lowering my car insurance rate?
Eduardo
Santa Ana, CA
I have to be honest about this, Eduardo. I myself am confused about this. The authorities in car insurance say that we must get a car insurance policy that has a higher deductible in order for the insurance plan holders to enjoy much lower car insurance premiums. It sounds like a fantastic idea, doesn’t it? But here is the catch. You do not have to be a genius to realize that it does not necessarily bring down the cost of the car insurance.
Deductibles are like your slice of the cake, your exposure and participation to the cost of the damages. It is that specified amount of money that the driver has to pay before the car insurance company pays for the remainder of the cost of damages. So, if you get a car insurance premium that has a $2,000 deductible, then that means that in the event an accident happens, you will have to shell out $2,000.
Personally, I do not see it as an advantage because I think that the bottom line would still be the same. Here you are paying for a less expensive car insurance premium that has a high deductible. Come accident time, there you go handing out precious bucks that the car insurance company should have been paying for had you decided on a lower deductible. Then again, this is only my opinion, and it is still best that you ask the expert advice of car insurance agents in California.
How Location Affects Car Insurance Rates in California
Reader’s Question:
Why did my car insurance premiums go up when I moved just ten miles east from San Diego California?
Mike
Good question Mike.
It seems like your zip code had changed and must have put you to a risk factor location according to your insurance company’s underwriting calculations.
There is an established guidelines, according to California Proposition 103, that was established in 1988, that determines your California auto insurance rates. He are the primary factors:
1. Your driving safety record
2. The number of miles driven annually
3. the number of years driving experience
There are other factors that can be used by the nsurance company to determine the individual’s premium.
The secondary factors are marital status, frequesncy, claims history, geographic area where your car is garaged, gender, type of the vehicle, etc.
Until now, insurance companies set rates for premiums based primarily on the zip code rather than the mandatory factors which is driving record, miles driven annually and the driving experience.
Make sure that you maintain a clean driving record within the next two years since this may change so that your rates will be based more upon your driving record than your zip code.
Goodluck!
MariCAR
Affordable Car Insurance For Senior Citizens
Getting older, especially if you don’t have a big retirement fund, can be a strain on the budget. This is why you see many American seniors taking their social security checks and moving to Mexico, which is one of the few places where they can live on such small amounts of money. Needless to say, the senior population of the United States needs a break when it comes to car insurance premiums. By retiring age, they will just barely be passing out of the least risky group and heading into an age group that confers high risk.
This is why joining the Hartford AARP might be a good idea for seniors who need a cut on their San Jose CA car insurance. In fact, if you join Hartford AARP, you’ll get a pretty big cut–the organization for retired people claims that they can knock the price of your car insurance premium down by almost fifty percent. Can you pass that up? I wouldn’t be able to.
If you have more than one car insured with Hartford AARP, then you get up to a twenty five percent discount. And if you have more than one kind of insurance with them, then you can add on another ten percent to your total discount. Should you be a policy holder with the Hartford AARP company for five years or more, you will also get a five percent discount.
When you get your insurance with Hartford AARP, you can also know that you are secure. Many times you can have your insurance canceled by another company if you get into an accident, or if you get a speeding ticket. However, with Hartford AARP there are only three things you can do to get your policy canceled, and those things are:
- get a DUI conviction.
- lose your license.
- fail to pay.
This company has a long history helping retired people, in more ways than just in getting cheaper car insurance premiums, so I suggest that any senior who wants to save money give them a good think.
How To Get Cheaper Car Insurance For Your Teenager
Car insurance premiums aren’t cheap, and even less when you add your new driver teenager to your policy. This is why you need to make the most of this new addition, pay attention to discounts, and encourage responsible behavior so that you can avoid future accidents. Car accidents are the number one cause of death among teenagers, and they often involve alcohol in the mix. Here are a few steps to follow to keep your teen safe on the road and, as a result, keep your car insurance premium cheaper.
- Pick the right car.
Every teen wants a sports car, a convertible, a big truck, whatever, but that doesn’t mean they should get one. I’m saying this even if you’re rich and have the money, and even if your teen has a job and can pay the monthly car note. When I was working my first job, one of my co workers was 16 and had just started buying a car from his dad. It was a big truck, and a new one, but all of his check went to it, almost. Guess what happened the first night he drove that car?
He crashed it. Yep, and then they had to file an insurance claim. I want you to think about the fact that kids are more likely to wreck cars, so you don’t want to spend too much money on them. Also, flashy cars are more encouraging of irresponsible behavior. On top of all that, the more expensive and dangerous the car, the higher your insurance premium will be.
- Share the burden.
Your kid is the one that’s making your insurance premium so high, so why shouldn’t they contribute? You can get them to do this by requiring them to pay part of the premium with proceeds from their job, or by having them do extra chores around the house. Whatever works for you.
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