California Auto Insurance Quotes Go Cheap for 2011 ; Drivers will get low-cost car insurance policies and premiums through price cuts and pay as you drive in Los Angeles and other Californian cities in 2011.
Californian drivers will get cheaper car insurance premiums in 2011, said online auto insurance quote providers and local insurance companies.
According to the statistics just released by Car Insurance, the average auto insurance quote for a driver in California is 1,143 US dollars in January this year, 11 percent lower than the same period of 2010 and 31 percent down from the 2009 level. The California January average is 20.6 percent lower than the national average of 1,440 US dollars.
California Car Insurance Quotes and Premiums Go Cheap for Declining Car Accidents
Why can California drivers get cheaper automobile insurance premiums in 2011? The car insurance quotes in the state go down year by year due to several reasons. The most important one is that the number of traffic accidents and their severity are going down. According to the statistics provided by Cacrash.org, the number of traffic fatalities declined year by year between 2005 and 2009. In 2005, 4,304 people died in car accidents in California. But in 2009, the number of deaths fell by 28.6 percent to 3,075 from the 2005 level.
Lower car accident numbers reduce the risks of automobile insurance business in the state. As a result, insurance companies count lower risks in calculating premium rates and make California auto insurance cheaper and more affordable.
Insurance Companies Provide Low Cost Automobile Insurance and Pay As You Drive Policies for Californian Drivers
Other reasons for the declined premiums include safer automobile technologies and stricter DUI (driving under the influence) and DWI (driving while intoxicated) laws and enforcement, which could reduce the risks of car collision and the number of insurance claims in the future.
The severe competition in the market and new products will keep pushing down the insurance rates in the Californian auto insurance market in 2011, according to local insurance services providers. This year, two insurance companies, State Farm Mutual and the Auto Club of Southern California, have started to offer PAYD (pay as you drive) policies for Californian drivers. The PAYD policies allow a driver to pay the car insurance premiums based on the number of miles he or she drives. They will encourage drivers to reduce the auto insurance costs and carbon dioxide emissions through driving less.
Other California or Los Angeles-based auto insurance companies have also started to provide PAYD policies or cut their insurance rates. For example, Mercury, the fifth largest car insurance companies in the state, announced two months ago that they would cut more than 10 percent of their auto insurance rates for Californian drivers, and other companies will follow soon.