Lower cost car insurance coverage policies and lower premiums will be available to the drivers in Californian cities in 2011 along with option to pay as they drive in Los Angeles. The car insurance premium will become cheaper according to many insurance quote providers and local auto insurance companies. As per the recent statistics, the auto insurance quote for a California driver is $1143 in January of this year. This represents a significant drop of 11% from the same time last year. It also represents a whopping 31% drop from what the numbers were in 2009. The California average in January is 20.6% lower than the $1440 national average mark in January. These show that the rates are significantly cheaper in this part of the country, compared to others.
The car insurance quotes in California have gone down year by year for various reasons. One of the most significant reasons is the fact that the number of accidents have gone down substantially over the years in California. The number has come down from 4304 in 2005 to 3075 in 2009. The risk of auto insurance providers is reduced by lower number of accidents which means the premiums are lower making the auto insurance policies much cheaper as well.
Another important reason why the rates are coming down is because of new technology being implemented in California which means DWI, which is driving while intoxicated and DUI, which means driving under influence can be detected more easily. As a result, the risks of auto collision and the insurance claims have come down significantly. The latest form of technology being used by insurance companies in California is PAYD or pay as your drive. As per these policies the premiums for car insurance paid by drivers in California would depend on their mileage and the way they drive. Insurance companies like State Farm Mutual and Auto Club of Southern California have already offered it to some drivers who are willing to get specific technology installed in their vehicles to note their driving patters and mileage. Another example of Los Angeles or California based auto insurance companies which are providing the auto insurance cuts is Mercury which is the 5th largest insurance company in the state. Mercury had announced a few days back that it will slash the insurance rates by as much as 10%. Other companies are also expected to follow suit.
