Have you noticed your Auto Insurance Premiums Changing?

many Auto Insurance Companies have finally implemented the Prop 103 changes on how they rate customers for their auto insurance. In many cases for the insurance company, this ment they had to completely revise how they currently rated drivers.

Today, after implementing these requirements as required by law, many consumers are seeing a reduction in their rates, while others are seeing increases. It is still unknown the percentages of consumers having a positive benefit from the changes.

Why is this important?

Before most insurers, used garaging address(zip code) as a major factor in coming up with the premiums for the risk. The changes now require the major factor for rates to be the drivers record and miles driven.

Now most of the industry at the time, was telling consumers this will result in a rate increase. This is still true, depending on where you live. For example if you live in an area with higher risk for theft, accidents etc, you will probably see a rate reduction, if in turn you live in an area with lower risk you probably will see a slight increase.

Now that mileage is also a major factor, the same is true. It is important that when you speak to your insurance provider that you are conservative with your mileage estimates, just putting any # out there, can cost you in the pocket book!