California’s car insurance rates are higher than the national average. According to data from Quadrant Information Services, drivers in California pay $733 per annum for minimum coverage, and $2,065 for full coverage insurance. The average cost of California auto insurance for different insurance companies, cities and drivers may help you determine if your policy is priced competitively. Bankrate’s research can help you to find ways to lower premiums. This could save you hundreds of bucks per year.
What is the cost of California car insurance?
Comparing the state of California to the rest of the country reveals how much more expensive the average cost of auto insurance in the state is. Nationally, the average annual car insurance premium is $565 to get minimum coverage and $1674 for full coverage. California’s auto insurance rates tend to be higher. Drivers pay an average of almost $200 more for minimum coverage, and nearly $400 more for complete coverage.
The cost of auto insurance is not only affected by where you live, but also the state in which you reside. Other factors that can affect your rating include:
- Insurance carrier
- City
- Age
- Driving record
These four factors can have a significant impact on your premiums.
California car insurance rates by company
Comparing quotes from the top insurance companies in California is one of the best ways to find the lowest car insurance.
Bankrate discovered that Geico and Mercury, Grange, Wawanesa had the lowest California average premiums, depending on what level of coverage they offer. Below is a table that shows the average annual premiums from the largest insurance companies in California based on market share.
California car insurance rates by City
Los Angeles and San Francisco have the highest full-coverage insurance rates, according to a study of the 20 largest cities in the Golden State. The average annual rates for Oxnard, Chula Vista and San Diego are lower.
California cost of living and California car insurance
To get an accurate picture of your living expenses and your car insurance premium, it is a good idea to compare your current rates with your potential California rates. Below is a graph that shows California’s average annual cost of living, which includes the cost of car insurance. This graph can be used to determine your annual expenses and help you decide on the best insurance rates for your budget.
California car insurance rates based on age
A driver’s age and gender often contribute to the cost of your annual premiums, as these factors can indicate how statistically risky a driver is. California bans the use of gender for car insurance rates. However, age is still a significant factor. Teen drivers are the most vulnerable. California 16-year old drivers increase their parents’ insurance premiums by $3,744 annually. California insurance rates tend to drop each year, provided you don’t get cited or cause an accident.
California car insurance rates for driving record
Your driving record is one of the most important factors that will affect your car insurance premiums. California law allows for a single speeding ticket to increase your car insurance premiums by up to 40%. If you are worried about how an accident could affect your budget, choose an insurance carrier that offers accident forgiveness. You can avoid paying surcharges for at fault losses if you have the program included on your policy prior to an accident.
How to Save on California Car Insurance
California’s auto insurance is more expensive than the rest of the country. There are many discounts that can be offered by insurance companies to help reduce your premiums. The following are some of the best discounts:
- Telematics: Some carriers have rewards programs for safe drivers that track your driving habits and reduce your premiums accordingly.
- Bundling: If you combine car, home, condo, or renters insurance with the same carrier, you could get a discount on each.
- Hybrid/EV: California has the most alternative-fuel vehicles on the road. Hybrid and electric vehicle drivers may be eligible for discounts when choosing an eco-friendly vehicle.
California car insurance requirements
California’s state laws require all vehicle owners to carry proof of financial responsibility. The easiest and most popular way to prove financial responsibility is through insurance. Acceptable alternatives include a $35,000 cash deposit to the DMV, a self insurance certificate issued by DMV, or a $35,000 surety bonds from a licensed business.
If you choose car insurance, California’s minimum coverage is as follows:
- $15,000 per person for bodily injury liability coverage
- $30,000 per accident for bodily injury liability coverage
- $5,000 per accident for property damage insurance
California car insurance companies must offer coverage for uninsured or underinsured motorists. However, these can be declined in writing.
Although minimum coverage insurance may be the most affordable option, it can also leave you with high-end out-of-pocket costs if you are involved in an accident. Your insurance policy will not cover property or injuries beyond the limits. You will be responsible for any additional damages that you cause. Keep in mind, however, that minimum liability coverage does not cover you financially for damage to your vehicle. For that, you need full coverage.
Questions frequently asked
What is the cost of California car insurance?
California’s average car insurance cost is $733 per annum for minimum coverage and $2,065 to cover full coverage. California’s average premiums may be higher than the national average due to California’s high population and heavy influx of tourists. There is a higher chance of accidents on busy roads. California’s cost of living is high. This could lead to higher medical costs, vehicle repairs, and labor costs.
Which California car insurance company is the most affordable?
Bankrate’s findings on the cheapest car insurance in California rank Geico, Grange and Mercury as the top three for minimum coverage. Our list includes Capital, Wawanesa and Mercury with the lowest rates of full coverage car insurance. Your rating factors will affect how much you pay. You might not find the cheapest company that suits your needs. This is why it can be beneficial to get quotes from multiple carriers.
California: How much do I need to insure my car?
California vehicle owners must purchase liability insurance that covers at least $15,000 per individual and $30,000 per accident in case of bodily injury. It also covers $5,000 for property damage. If you are involved in an accident, however, your vehicle coverage is not included in the minimum state coverage. You will need full coverage if you lease or finance a car.