Shopping for insurance can feel overwhelming, but understanding how insurance quotes work is the first step to saving money. In California, the Department of Insurance surveys licensed insurers to provide annual premiums for various personal insurance types, as mandated by California Insurance Code Sections 12959, 10234.6, and 10192.20. These surveys are designed to help consumers like you compare premiums across different insurance companies. Think of them as a valuable tool to see potential price differences in the market.
Premium Survey Notes: It’s important to remember that these survey results are not actual insurance quotes. They are for comparison purposes only.
How Insurance Rates and Premiums Are Determined
Insurance companies don’t just pull prices out of thin air. They calculate your premium based on rates that are officially filed with and approved by the California Department of Insurance. These rates are the foundational elements of your premium. They include adjustments, like discounts for lower-risk factors and surcharges for higher-risk factors.
For example, an auto insurance rate might offer a discount if you bundle multiple policies with the same insurer. Conversely, you might see a surcharge if you drive a sports car, which is statistically associated with higher claims. After considering all the specifics of your situation, the insurer calculates the final premium you’ll be charged for your insurance policy.
It’s crucial to understand that the California Department of Insurance is a regulatory body, not an insurance agent. They oversee the industry but don’t provide individual insurance quotes. The premium surveys they conduct are solely for comparing premiums across companies. Keep these key points in mind when using these surveys for Insurance Quote Compare:
- While the surveys include companies representing over 90% of the market, they don’t encompass every single insurer in California. Some admitted insurers may not be included.
- Most importantly, the premium you ultimately pay to a specific insurer might differ from the survey results. These surveys offer a general premium comparison and don’t account for the specific discounts or surcharges that might apply to your unique profile and circumstances.
If you have any further questions about the information presented in these surveys, don’t hesitate to reach out to the Consumer Hotline for assistance.
