A Rights Check for Your Premium, Rule by Rule
Discounts are what a company offers. These are what the law requires. Each one is a question you can put to your insurer, and each has a place on your policy papers where the answer should show. Run the check once a year, or whenever a price surprises you.
Rules about who you are
- Only listed factors. A class plan may use only the factors listed in 10 CCR 2632.5. Credit score and gender are not on the list; nor are occupation or education level.
- No penalty for no prior insurance, by itself. Insurance Code section 1861.02(c) says the absence of prior insurance, in and of itself, may not be a criterion for Good Driver eligibility, rates, premiums or insurability.
- Loyalty credit stays in the family. A persistency credit may be given at renewal, or on a new policy for someone currently insured with the company or an affiliate, but never based on coverage from a non-affiliated insurer.
Rules about your record
- The Good Driver floor. If you qualify, you may buy a Good Driver Discount policy from the insurer of your choice, priced at least 20 percent below the lowest rate available to a comparable driver who doesn't qualify, applied after the full premium and issuance fees. See what to do if you're turned down.
- Fault has a test. An accident counts as principally your fault only if you were at least 51 percent of the cause and it caused injury or over $1,000 of damage, and you have 30 days from the written notice to ask for reconsideration. See how to challenge a finding.
- Work driving. Certain on-the-job tickets and on-duty accidents may not raise your personal premium.
Rules about mileage
Your mileage is an estimate for the next twelve months. If the insurer uses its own figure because you gave none, it must tell you first; at renewal it must highlight any change in writing; and it may not adjust your premium afterwards on actual miles unless you were told before the policy began.
Rules for particular drivers
Admitted insurers must give a premium reduction on liability to principal operators 55 and older who complete the DMV-approved mature driver course. For income-eligible households, California's Low Cost Auto program is listed in the DMV's driver handbook at mylowcostauto.com and 1-866-602-8861.
How to run the check
| Rule | Where to look | What to ask |
|---|---|---|
| Good Driver Discount policy | Declarations page or a written confirmation | "Is this a Good Driver Discount policy?" |
| No credit or gender rating | The factors the company says it used | "Which factor produced this price?" |
| Prior insurance | The reason given for a high quote | "Is the lack of prior insurance itself being used?" |
| At-fault finding | The written notice after an accident | Ask for reconsideration within 30 days if it's wrong. |
| Mileage | The mileage figure per car, and any renewal notice | "Is this my estimate or a default figure?" |
| Mature driver course | A discount line, after you send the certificate | "When does my three-year period end?" |
If an answer doesn't add up, ask the company to put it in writing; the Department of Insurance also takes Requests for Assistance. Then compare quotes from companies applying the same rules to the same facts.
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Can a California insurer use my credit score to set my rate?
Credit score is not among the rating factors California's regulation allows in an auto class plan.
Can I be charged more because I had no insurance before?
Not because of that alone. The absence of prior insurance, in and of itself, may not be a criterion for rates, premiums or insurability.
Will my new insurer give me credit for years with my old one?
Not as persistency if the old company is not an affiliate. California bars basing a persistency credit on coverage from a non-affiliated insurer.
Who enforces these rules?
The California Department of Insurance, which takes Requests for Assistance from consumers about insurers.