Unlike other states across the country, California insurance rates did not increase in 2013. Insurance rate decreases are evident in car insurance quotes California (CA) drivers have received from insurers all year long. The decline in rates is in stark contrast to the high costs state residents have experienced in other areas including electricity and the general cost of living.
Why Rates Decreased:
Experts suggest Proposition 103, passed back in 1988 by voters, is the reason car insurance quotes in San Jose and other major cities in CA declined. The law improved insurance regulation throughout the state. As a result, there are fewer drivers on the road without insurance. By reducing the risk to insurers, they were able to lower rates.
How Drivers Benefit:
There are more insurers in the state competing for your business. Since this law was passed, California drivers have seen a 4 percent decline in rates compared to the nearly 40 percent increase experienced by drivers in other states. The law requires insurers to justify all rate increases and gives safe drivers a 20 percent discount on coverage. It also mandated opportunities for rate comparisons which is possible with free car insurance quotes from multiple insurers.