Each company has its own formula for determining rates that they file with the state of California. However, Proposition 103, enacted in 1988, requires that your premium be based largely on the following 3 factors:

• Driving Safety Record

• Annual Mileage

• Years of Driving Experience

Other factors that companies take into consideration when determining your premium include the type of vehicle you drive, your age and marital status, and the company’s previous loss experience in the area where you garage your vehicle. The companies’ loss histories will vary, of course, as will the amount of weight that they give each of these factors. Therefore, your rates can differ wildly between each insurance company and it's important to shop around.

As you can see, your driving safety record is one of the biggest factors affecting your California automobile insurance premium. That's why it's so important to keep points of your license whenever possible. If you do get a traffic ticket, taking a state approved defensive driving class can lead to the charges being dismissed, so that the ticket does not lead to a corresponding jump in rates. Driving University offers a state-approved California defensive driving class that you can take online. Our online traffic school makes it easy and fun to keep your record clean. If you have a ticket you need to dismiss, you can check out our online course here.

If your driving record is bad enough, you may have a hard time getting insurance at all. Also, some offenses, such as DUI, will cause you to have to carry special insurance called SR-22. Sr-22 is more expensive than regular insurance, and many companies don’t offer it.