How to Get the Best Rate on Auto Insurance in CA, The Nuts & Bolts

Saving money is important in overall financial wellness.  I’m going to give out some auto insurance industry pointers that will help you save money.  Some of the information below is not always broadcasted to the public by insurance companies but is out there for consumers to benefit from. 
Understanding how your policy is rated is key.  There are some rating variables in an insurance policy that affect the premium.  These variables are determined by the information given to the agent by the customer or policy holder.  The five rating variables I’m going to talk about are:

  1. Mileage
  2. Multi-Car Discounts 
  3. 3.0 Fulltime Student Discounts 
  4. Professional Discounts 
  5. Location

Mileage these days has the biggest influence on your insurance rate thus affecting the premium you are going to pay.  So the lower amount of mileage you drive the lower amount of premium you are going to have to pay per policy period.  In the State of California a lot of people don’t know but insurance companies have to go with what the customer or policy holder tells them relating to mileage especially when first purchasing or receiving a quote.    So if you say I drive 10,000 miles a year that’s what they have to go by.  Even if the insurance company uses a computation that says you drive 15,000 miles a year – which by the way is probably a couple hundred dollars more in price –  they have to go with what you state.  An Insurance company might ask you how many miles you drive to work, how many days per week do you go to work, and then they add additional miles for pleasure use.  They use this calculation which a lot of times are not that accurate and come up with an amount that is usually on the high side.  It doesn’t take into account vacation days or it assumes you don’t car pool or sometimes use alternate transportation or now live closer to work, whatever.  So when you give your annual mileage estimate be conservative and give yourself the benefit of the doubt in the amount you say.  It could save you a few hundred dollars per policy period.  Try it out on your next auto insurance quote or call and make a change to your existing policy and see the difference.


Next in the series we will examine Multi-Car Discounts.

3 thoughts on “How to Get the Best Rate on Auto Insurance in CA, The Nuts & Bolts”

  1. I always favour to go for Insurance policy of expensive asserts. Our house, vehicle and other expensive asserts must be insured so that if anything goes wrong then, we need not to be suffered. I have already insured my all asserts and every one must have to go for this.

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