California is regarded as being one of the most costly states in terms of living expenditures, but our average vehicle insurance cost per month study shows that while it is not the cheapest of all states, it is also not the most expensive.
Although California isn’t one of the top ten most expensive states for vehicle insurance, it is in the middle of the pack.
Vehicle owners in California are expected to comply with a reduction of pollution requirements. As a result, consumers are forced to purchase more modern automobiles, which are often more expensive and not the cheapest to insure.
However, various additional factors influence California car insurance premiums, such as the fact that California drivers aren’t always the safest and most cautious, putting insurers at risk.
Let’s say you’re considering buying a car in California or you’re curious about how much auto insurance in California costs per year.
In that case, this article will assist you in learning more about the state’s auto insurance pricing and what you can do to obtain affordable California car insurance that suits your needs.
Table of contents
- How Much Is Car Insurance in California?
- How Much Is Car Insurance In California Per Month?
- Minimum auto insurance requirements in California
- How much is Full Coverage Car Insurance in California?
- Why Is Car Insurance in California So Expensive?
- How to Get Car Insurance in California?
- Which company has the cheapest car insurance in California?
- Which car insurance company is the best-rated in California?
- How to Get the Cheapest Full Coverage Car Insurance in California
How Much Is Car Insurance in California?
Average Car Insurance Cost Per Year in California
In 2023, full coverage vehicle insurance in California will cost an average of $2,354 per year. However, California is a large state, and this is only the national average of what policyholders pay.
Your specific premium will be determined by how much coverage you have in California, which insurance companies you deal with, your personal driving record, and whether you get full coverage or a basic liability policy.
The following are typical premiums charged by California insurance companies for the most basic forms of coverage:
- Basic Liability: $616 (includes coverage for other drivers and property damage)
- Collision Coverage (covers the cost of repairs to your vehicle): $484
- Comprehensive Coverage: $95 (includes “acts of God,” natural disasters, and theft).
Of all, these are only the fundamentals offered by most California auto insurance companies.
To protect yourself from calamities such as wildfires or earthquakes, you may choose to pay for an additional property damage policy, uninsured motorist coverage, bodily injury liability coverage, or extra comprehensive coverage, depending on your unique needs.
How Much Is Car Insurance In California Per Month?
All the insurance premiums shown above are based on a normal “insurance year” and are charged to policyholders yearly. You will, however, typically have the option of choosing between six-month and twelve-month coverage.
You’ll be required to make a small down payment when you first sign up, and it will pay the balance of your vehicle insurance policy off in monthly installments.
You may be eligible for a little reduction if you are willing to pay for the entire policy upfront. Most people, however, cannot afford to pay their full policy in one lump sum, thus monthly payments are significantly more common.
The average cost of liability insurance in California is little under $500 per year, according to the Insurance Information Institute, with per-person coverage limits of $30,000.
Drivers were also required to obtain uninsured/underinsured motorist coverage, which ensured that they would be covered even if they were in a collision with someone who did not have vehicle insurance. This usually costs $100 more every policy period.
So, if you have a $600 per year coverage that renews on a twelve-month basis, you’ll pay roughly $50 per month, plus any applicable taxes and fees, according to the calculations. However, this is only for the bare-bones liability coverage.
However, let’s say you want a complete insurance policy that includes collision coverage, comprehensive coverage, personal injury protection or bodily injury liability coverage, improved property damage liability insurance, and so on.
In such a situation, full coverage auto insurance in California costs roughly $1,700 per year or around $148 per month.
Minimum auto insurance requirements in California
For bodily injury liability and property damage liability coverage in California, the minimum liability limits are 15/30/5.
- Bodily injury (BI): $15,000/$30,000 per accident
- Property damage (PD): $5,000 per incident.
While this is the cheapest insurance plan available, we recommend customizing your policy limits to fit your driving habits and financial position.
If you own a home in one of California’s most costly ZIP codes and have significant savings and investment accounts, we recommend raising your liability limits and adding umbrella coverage to your normal policy to protect your assets.
If you’re a college student who doesn’t drive often, on the other hand, investigate liability limits that are closer to California’s minimal state requirements for car insurance.
In 2023, the cost of minimum liability auto insurance in California will be $48 per month or $574 per year.
Minimum vehicle insurance in California is not advised because it does not give enough coverage to protect you from the unexpected and cover any costs associated with driving in the state.
How much is Full Coverage Car Insurance in California?
However, full coverage vehicle insurance, which costs an average of $142 per month or $1,700 per year in California, is recommended for the best car insurance in California, namely cheap auto insurance that also keeps you fully protected on the road.
Why Is Car Insurance in California So Expensive?
California isn’t the most dangerous state to drive in (that title goes to Florida) or the most expensive state to insure a car, but it’s still towards the bottom of the list.
This is most likely due to California drivers having to deal with a lot of traffic (especially in large cities with jam-packed rush hours).
California is also ranked 12th in the US for uninsured motorists, with all drivers required to have uninsured motorist coverage.
If you’re a young driver with a sports vehicle, speeding fines on your record, and a low credit score, your average car insurance cost may be more than the average California car insurance premium.
However, if you have a clean driving record, are 25 years old (or older), and have not been in a recent accident, your typical auto insurance premiums will most likely be lower.
How to Get Car Insurance in California?
Auto insurance in California is simple to obtain. To get your quotations, you may quickly compare auto insurance quotes online, over the phone, or in-person with an insurance agent.
Most insurance providers, websites, and agents will need some basic information about your driving record and car.
They’ll provide you quotations for monthly/6-month/annual payments once they’ve processed your information, and you may complete the transaction in less than 24 hours, and sometimes considerably sooner.
Which company has the cheapest car insurance in California?
Geico has the most affordable auto insurance in California, according to our study of thousands of bids from ZIP codes all around the state.
For minimum liability coverage, the firm charges an average of $390 per year. This is 35% less expensive than the statewide average.
AAA of Northern California (AAA NorCal) or Progressive may also offer reasonable coverage. Both motor insurers provide annual prices that are within $100 of Geico’s, yet are still significantly less than the statewide average.
Which car insurance company is the best-rated in California?
In terms of client satisfaction, AAA is the best-rated vehicle insurance business in California. Service, coverage options, and price all garnered high marks.
It’s also one of the most popular choices in the state. For most drivers, AAA’s combination of helpful coverage options, competent service, and generally reasonable costs makes it the ideal option.
How to Get the Cheapest Full Coverage Car Insurance in California
- Get auto insurance rates online and compare them.
- Take advantage of the low-cost auto insurance program in California!
- Drive safely and keep a clean driving record.
- Maintain a high credit score.
- Make sure you have a low-cost car to insure.
You’ll want to compare vehicle insurance from the best auto insurance companies in California to find the most inexpensive, low-cost car insurance rates near you.
When comparing California auto insurance, make sure to get as much full coverage vehicle insurance as possible that fit your needs, so you can later determine which is best for you.