Will California Auto Insurance Rates Decrease?


The premium amounts for California car insurance and uninsured motorist coverage have notoriously been relatively high. Recent trends in the economy have had a negative impact on the credit of the average driver, also forcing premiums with companies who rate based on credits scores to go even higher. So as the economy slowly releases its grip on the public, can we expect to see California auto insurance rates decrease?

Auto Insurance Rates in the US are Decreasing

In most states, the average annual auto insurance premium in 2009 declined. According to RateWatch, one of the premier sites for tracking changes and patterns in financial product pricing, the average car insurance rate in the United States dropped a little more than 5.5% between January and October of 2009.

While some states saw greater decreases in premium than others, the premium amounts for California car insurance, including California uninsured motorist coverage, were amongst those that saw a relatively moderate decrease, with a decrease of approximately 1.2% as calculated by Rate Watch using the quoting data submitted by insurance carriers around the country.

Did All States See a Decrease?

Fortunately, California drivers purchasing liability and California uninsured motorist coverage have been lucky. There are four states that saw very little change, if any at all, including Iowa, West Virginia, Minnesota, and Wisconsin. Four additional states actually saw increases in premium, including Maryland, Florida, Kentucky, and New Jersey.

Will California Auto Insurance Rates Go Down?

Recent trends in the way insurers rate their policies seem to indicate that those purchasing California uninsured motorist and liability coverage can expect to see the premium amounts for California car insurance go down a bit again in 2010. Part of the reason is due to the high levels of unemployment.

Don’t praise the auto insurers yet, though. Car insurance companies aren’t being nice to give drivers a break. Instead they are looking at dropping auto accident statistics. In a congested state with high levels of traffic, especially during rush hour, they are seeing a significant drop in drivers on the road due to the current unemployment levels.

With websites like ours you can search for high quality auto insurance quotes online 24 hours a day, 7 days a week. This type of competition is also forcing the premium amounts for California car insurance to drop as well. After all, consumers suddenly have a lot more options when it comes to buying the coverage they need to stay on the road!

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