Shopping for insurance can be a confusing process. In California, the Department of Insurance surveys licensed insurers to understand the premiums they charge for different types of personal insurance, as mandated by California Insurance Code Sections 12959, 10234.6, and 10192.20. These surveys provide valuable insights into premium comparisons between insurance companies and can help consumers get a sense of the market. It’s important to note that these survey results, detailed in Premium Survey Notes, are not actual premium quotes. They are designed as a tool to help you Compare Auto Coverage costs and other insurance types across different providers.
How Insurance Rates and Premiums Determine Your Costs
Insurance companies 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 incorporate both potential discounts for lower-risk factors and additional charges for higher-risk factors. For instance, when you compare auto coverage options, an insurer might offer a reduced rate if you bundle your auto policy with home insurance. Conversely, you might see an increased rate if you are insuring a high-performance vehicle. After assessing all the specific characteristics of your risk profile, the insurance company will calculate the final premium you will be charged for your policy.
It’s crucial to understand that the California Department of Insurance is a regulatory body. We oversee insurance practices but do not function as insurance agents. Therefore, we cannot provide individual insurance quotes. Our surveys are specifically designed to offer a comparison of premiums across a selection of insurance companies to help you compare auto coverage and other insurance products. Keep these points in mind when using our survey information:
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The surveys include companies that represent a significant portion (over 90%) of their respective insurance markets in California. However, there are other licensed insurers in the state that are not included in these surveys.
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Critically, the actual premium you are quoted by an insurer may differ from the survey amounts. These surveys offer general premium insights but do not account for individual discounts or surcharges that may apply to your unique circumstances when you compare auto coverage or other insurance needs.
If you have further questions about the information presented in these surveys, please contact our Consumer Hotline for assistance.
