What Determines Your Car Insurance Rate in California?

Insurance companies use details called rating factors to calculate your premium—and understanding them can help you shop smarter.

Three factors insurers must consider

California requires these mandatory factors, in this order of importance:

1. Your driving record: Traffic convictions and at-fault accidents.
2. Your annual mileage: How many miles you drive each year.
3. Your driving experience: How long you have been licensed to drive.

These are the foundation of California’s auto insurance pricing rules. California Insurance Code §1861.02

Other factors insurers may use

Depending on their approved rating plans, insurers may also consider:

• Your vehicle’s type, features, and repair characteristics.
• How you use it—for commuting, pleasure, or business.
• Where you keep it, based on local claims patterns.
• Multiple vehicles or policies with the same insurer.
• Qualifying student grades or driver-training courses.
• Marital status, which the new proposal would remove.

“Optional” means optional for the insurer—not a charge you can simply decline. These factors are also different from choosing coverage or deductibles. California’s rating-factor regulation

Put this information to work

Driving less? Changed jobs or vehicles? Ask for a review using your current, accurate information. When comparing quotes, match the coverage limits and deductibles so you can see the real difference.