California’s median auto insurance rate has decreased by 3.1% according to reports from InsWeb, an online insurance quote database. The decreased occurred over the past year with the national average following a similar pattern and dropping by 5.6% over the same time period. California currently ranks as the 19th most expensive state in which to insure a vehicle in the U.S.
The report suggests that Californian males pay more for their auto insurance than women by nearly 7.7%. Drivers aged 19 and younger pay nearly double the rates of any other age group according to the data.
Data was compiled by using a proprietary system that tracked the rates of multiple insurers across the nation. InsWeb said that the 3% decline in premiums is not the result of any major legislation or action. The company notes that premiums are often affected by the value of vehicles and, with the recession, fewer people were buying new cars, opting instead for used vehicles.
The current median insurance rate in California is $809 and it is estimated that households earning an average of $40,000 a year are paying 3.4% of their gross income on car insurance.
The research was done with data compiled from the fiscal year of 2010-2011. Last year was a notoriously troublesome year for insurers as they face legislative woes and damages from natural disaster. The global recession did not help matters either and a number of companies were forced to merge with larger insurers or go out of business.