Paula F. Downey
President's Page: Good Driver Rates
AAA is dropping its car insurance rates for nearly one million California drivers. Find out what trend is leading this change.
With the price of gas above $3 a gallon and the expense of auto repairs on the rise, drivers deserve some good news. So here it is: Car insurance rates for many policyholders in California are going down.
We rolled out new rates in December. Overall, we’ll be lowering premiums more than $100 million for our nearly 1 million California policyholders. We’ve reduced rates because of the trend toward fewer claims and our continued efforts to trim expenses and provide greater value to members.
Why fewer claims? Experts, including our own, point to several things, including safer cars, aggressive efforts to fight fraud, and changing demographics (read: aging Baby Boomers). Significantly, a number of traffic safety initiatives that AAA has fought for—graduated licensing programs for teen drivers, red-light cameras, and stricter seat belt and blood alcohol content laws—have also contributed to the decrease.
Nothing, of course, reduces claims as much as safe, responsible drivers. So it’s fitting that they’re the ones who will benefit from the new rates.
Since 1989, your driving record, the number of miles you drive, and your years of driving experience have been the primary factors that affect your rate. But your premiums might also have been influenced by where you live and other factors. At the direction of California’s Department of Insurance, these secondary factors must be diminished by this July, and the change will magnify the importance of your safety record.
We reached full compliance with this direction seven months early. The net effect? Most drivers who insure their cars or trucks with us will see their cost go down. On the whole, our rates in California are dropping 6.5 percent.
Clearly, the car insurance environment in California is changing quickly. To see how that can benefit you, drop by one of our offices, call us at (888) 807-3222, or visit us at AAA.com/insurance. And remember: AAA policyholders are not only covered by our quality insurance, they get all the services and discounts that are available exclusively to club members.
Photography by Anne Hamersky
This article was first published in March 2008. Some facts may have aged gracelessly. Please call ahead to verify information.
