How do California’s regulations influence insurance shopping and pricing?

Insurers June cancel or not renew a car insurance policy for a driver with a history of accidents, moving violations, or with a DUI/DWI conviction. As for charging for an insurance policy, it is whatever the market will bear. There are certain statutory or regulatory prohibitions. For example, there is the infamous redlining, meaning charging more for insurance in certain heavy minority areas. With this being said, insurers are legally able to charge different fees for different areas. For example, a similar policy might cost more in the intercity than in Westlake Village. The insurers justify this predicated upon actuarial numbers. If they can prove the distinction, the difference is acceptable. If it is solely upon racial, income, or other personal attributes, it is not acceptable.

California also allows insurers who provide certain services/insurance to operate without a license. If the consumer is a high-risk driver, such as one with a lot of tickets, suspended license, or a few DUI’s, this might be the only insurer they can get. Just be aware, there are risks inherent with these companies you do not have with licensed companies.