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What is the Law Regarding Car Insurance Quotes in San Jose, California?



Understanding the law is very important when it comes time to shop for car insurance quotes. You must have adequate coverage to make driving legal, but you also need to have enough coverage to protect yourself.

Why California is the Cheapest Place to Purchase Car Insurance Quotes



Living in California has its benefits, but unfortunately it comes at a cost. Being one of the most expensive states in the country can take a toll on many people's budgets. Fortunately, car insurance quotes in San Jose, California are among the cheapest in the country.

Cars with the Cheapest Car Insurance Quotes in San Jose, California


Toyota Corolla

Out of the many things that go into your car insurance quotes, the type of car you drive is one that is under your direct control. Here are some of the cheapest cars to insure while living in California.

Finding Car Insurance Quotes in San Jose Can Save You from Legal Repercussions


Car insurance in San Jose

The State of California has many ways of finding out your insurance status, and the consequences for not having any can be steep. Finding cheap car insurance quotes (San Jose included) can keep you protected in many ways.

Why California is the Cheapest Place to Purchase Car Insurance Quotes

California is certainly not known for its low cost of living. People routinely pay much more to live in California. Housing, food, electricity, and other expenses are generally much more expensive here than in other places. However, California has managed to somehow have some of the cheapest car insurance quotes around thanks to a state law.

If you were looking for car insurance quotes in San Jose, CA - or the rest of California - 20 years ago, you would have noticed a decline in premiums. Between 1989 and 1998, insurance costs went down by 4%, while the rest of the country saw a 39% average increase. States such as Arkansas, Nebraska, West Virginia, Kentucky, and South Dakota have seen the largest increases with Pennsylvania, Maine, New Hampshire, Massachusetts, and New Jersey seeing the smallest.

National averages show that most drivers spend more than $700 per car on insurance and $1500 per household. This comes out to $100 billion dollars per year spent on insurance in the United States.

Throughout all of this, California was the only state to see declining insurance rates. Many people credited this decline to Proposition 103 - a law passed by the state's voters in 1988 that increased the regulation of the insurance industry.

Proposition 103 helped people looking for car insurance quotes in San Jose California and the rest of the state to see smaller premium increases, less uninsured drivers on the road, and more options for car insurance. This also helped the companies have larger profits.

In addition, this law made in mandatory for insurance companies to allow access to their books in order to justify any rate increases, allowed drivers with clean records to have a twenty percent discount on their premium, allowed banks to sell auto insurance, and required rate comparisons to be given by the state commissioner.

Many believe that other states across the country should do the same as California. However others have argued that California has seen rate decreases due to greater seat belt use, fighting against insurance fraud, improved highway safety, and changes to the ease of filing lawsuits resulting from car accidents. After 1998, other states began to see decreases in car insurance quotes for the same reasons, although state-by-state numbers are not available for those years.

Unfortunately California still has a higher cost of living than most other states. However if you are looking for car insurance quotes in San Jose, CA - or elsewhere in the state - you have the advantage of having access to some of the lowest car insurance rates in the country. No matter what the cause, you can use these low rates to ensure you are carrying the best insurance available for your vehicle.