Santa Clarita residents pay more for car insurance annually than the state average, according to a recent study by consumer finance website ValuePenguin.com.
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Santa Clarita residents pay about 14 percent above the state average for basic liability coverage, and Canyon Country residents–analyzed separately because of separate ZIP codes–pay about 18 percent above the average.
The ZIP codes used in the study for Santa Clarita and Canyon Country were 91350 and 91351, respectively, said Ting Pen, an employee of ValuePenguin and author of the study.
This comes to an annual cost of about $1,294 for single drivers in Santa Clarita and $1,212 for married drivers, according to the study.
In Canyon Country, resists pay an annual average of $1,330 for single motorists and $1,258 for married motorists.
There are many factors that go into determining car insurance costs, including geography or location, the type of vehicle and the owner of the vehicle, Pen said.
Location is the most important of those factors, Pen said, because insurance companies base prices on the frequency of claims submitted and the crime rates in a particular region.
The value of a vehicle, the safety features it offers and how often the motorist drives it also contribute to insurance costs.
Within the study sample, Glendale had the highest rates of bodily injury and uninsured-underinsured motorists, in addition to the highest claims amounts involving uninsured or underinsured motorists.
The age, marital status and driving record of the owner play a role, as well.
For example, “if you’re married, insurers tend to view married couples as more stable and safer drivers,” Pen said.
It all boils down to how accident or theft prone a vehicle is.
Pen’s study analyzes average basic liability coverage costs for both single and married drivers, driving recent standard cars like the 2012 Toyota Camry, 2012 Honda CR-V or 2012 Mercedes-Benz C300.
The information comes primarily from a survey of California insurance companies done annually by the state Department of Insurance, Pen said.
Glendale was reported as having the highest auto insurance rates in the state, at 62 percent above average, and Calexico had the lowest rates–23 percent below average.
Residents of the city of Los Angeles pay about 44 percent above the state average.
Pen commented on the discrepancy between costs in Santa Clarita and Los Angeles.
“One of the primary reasons that Los Angeles rates are so high is that they have such a high rate of claims frequency…” she said. “Santa Clarita falls into a much lower frequency band. The rates there are half to a quarter of the claims frequency rates of what you could see in Los Angeles.”
For the full study, including the top five most expensive and least expensive cities in California, click here.
The California study is part of a 50-part series on auto insurance costs across the nation.
ValuePenguin is made up of a team of analysts that reviews and analyzes data, facts, filings, and research for the most salient and relevant insights to help readers make decisions. Their sources are reports, databases, congressional bills and regulatory filings. Their products are analyses and articles on a variety of topics that affect the consumer: healthcare, auto insurance, education, etc.
There are roughly 244 million registered vehicles in the United States, and auto insurance is a decision that affects all of them. ValuePenguin.com has produced guides covering the different types of auto insurance liabilities, as well as detailed reviews and assessments of car insurance companies.
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Source: Santa Clarita News