The rates have dropped by 11% in 2011 which is an incredible 31% low since 2009. The drivers have also been given the option of paying as they drive. These recorded statistics indicate that the insurance rates are much lower here compared to other parts of the country. There are a number of reasons for this surprising trend in a world of rising auto insurance rates. The most significant one is the lowering of number of accidents on the road. The numbers dropped from 4304 in 2005 to 3075 in the year 2009. Given this positive statistic, the insurance companies figured that there is less risk of accident claims, and as a result lowered their rates. If the possibility of a risk is seen as low, then the rates are correspondingly reduced.
There is a reason behind the lowered accident rates on the streets of California. Two important laws have been implemented to extremely good effect. One is the DUI law- which means driving under influence and the other one is DWI which means driving while intoxicated. Both refer to driving an automobile after or while drinking alcohol. Random road tests conducted by pulling over motorists and testing them for alcohol consumption have proved very effective. Heavy fines and the possibility of prosecution have discouraged Californian motorists from drinking and driving. This in turn has significantly reduced auto accident cases. Apart from reduced insurance rates, this trend has also resulted in safer roads and fewer hit and run cases.
Another important contributing factor is a new system of determining rates called ‘PAYD’ or pay as you drive. This involves the installing of new technology that is able to record your mileage and driving patterns. This in turn helps the insurance companies in determining the rate they should offer you. So if your driving is competent, safe and law- abiding, you stand a much better chance of being handed a lower auto insurance rate. Big reputed auto insurance firms have already put this idea into place. Most auto insurance companies in California have cut their rates by at least 10% from last year.
