Auto Insurance In California: Monthly Costs Explained

The cost of auto insurance in California varies depending on factors such as age, driving history, location, and the level of coverage. The average monthly cost for state minimum coverage is $50, while the average monthly cost for a full coverage policy is $122. The average annual cost of auto insurance in California is $1,464 for full coverage and $597 for minimum coverage. The cheapest car insurance company in California is Progressive, with an average annual rate of $1,466.

Average monthly cost of car insurance in California

The average cost of car insurance in California varies depending on factors such as age, driving history, location, and the level of coverage.

Average Monthly Cost by Coverage Level

The average monthly cost of car insurance in California ranges from $50 for state minimum coverage to $122 for full coverage. The state minimum coverage in California includes $15,000 for bodily injury liability per person, $30,000 per accident, and $5,000 for property damage liability per accident.

Average Monthly Cost by Company

The average monthly cost of car insurance in California also varies by company. For example, Progressive offers the cheapest rates at $122 per month, while Farmers charges around $179 for comparable coverage.

Average Monthly Cost by City

The cost of car insurance in California also differs by city. For instance, the cheapest city for full coverage is Visalia at $98 per month, while the most expensive is West Covina at $123 per month.

Average Monthly Cost by Age

Age is a significant factor in determining car insurance costs in California, with younger drivers facing higher premiums. For instance, drivers aged 22 to 29 pay the most, with an average monthly cost of $153, while mature drivers over 60 enjoy the lowest costs at around $48 per month.

Average Monthly Cost by Driving Record

The average monthly cost of car insurance in California is also influenced by the driver's record. A clean driving record can lead to more affordable rates, while violations such as tickets and accidents typically increase premiums. For example, a DUI can increase insurance costs by up to $291 per month.

Average Monthly Cost for Newer Cars

The average monthly cost of car insurance in California is also higher for newer car models due to their increased value and repair costs. For a 2022 model, the average annual cost is $1,818, or approximately $152 per month.

Tips to Save on Car Insurance in California

To secure more affordable car insurance in California, it is recommended to compare quotes from multiple insurers, maintain a clean driving record, increase the deductible, and take advantage of available discounts.

Factors affecting auto insurance rates

Several factors influence auto insurance rates in California. Here are the key determinants:

Age and Driving Experience:

Age is a significant factor in determining auto insurance rates, with younger and less experienced drivers often paying higher premiums. Insurance companies consider drivers below 25 to be high-risk due to their lack of driving experience, resulting in more expensive insurance policies.

Driving Record:

Your driving history, including moving traffic violations, at-fault accidents, and DUI/DWI convictions, plays a crucial role in calculating insurance rates. A clean driving record can lead to lower premiums, while incidents like speeding tickets and accidents can increase your rates.

Vehicle Type:

The type of car you drive impacts insurance rates. Insurers consider the repair costs, theft rates, and comprehensive claims history of similar vehicle models when setting premiums. Luxury vehicles with advanced technology and safety features are typically more expensive to insure due to higher repair costs.

Location:

Urban residents, especially those in densely populated areas like Los Angeles and San Francisco, tend to pay higher insurance rates. This is because metropolitan areas have higher rates of theft, vandalism, and accidents, increasing the likelihood of insurance claims.

Coverage Selections:

The coverage options you choose will significantly impact your insurance costs. While minimum coverage may be cheaper, it's essential to ensure you have sufficient protection. Liability insurance is required in most states, but consider adding collision, comprehensive, medical, and uninsured motorist coverage for more comprehensive protection.

Insurance History:

If you're a new driver or have gaps in your insurance coverage, you may face higher rates. Insurance companies view these factors as indicators of higher risk. Maintaining continuous insurance coverage can help keep your premiums lower.

Deductible Amount:

The deductible is the amount you pay out-of-pocket before your insurance company covers the remaining expenses from a claim. Choosing a higher deductible typically results in lower insurance premiums, but it's important to ensure you can afford the deductible amount if needed.

Average rate of full coverage in California

The average cost of full coverage car insurance in California is $1,464 per year, or $122 per month. This is based on a 35-year-old driver with a clean driving record. The cost of full coverage in California is higher than the national average, which is $1,296 per year or $108 per month.

The cost of car insurance in California depends on several factors, including age, driving history, location, and the type of car. For example, younger drivers typically pay more for car insurance than older drivers, and drivers with a clean driving record will usually pay less than those with accidents or violations on their record. The cost of insurance also varies by city, with drivers in densely populated areas, such as Los Angeles and San Francisco, tend to have higher rates than those in more rural areas.

According to one source, the cheapest full coverage car insurance in California is offered by Mercury Insurance, with an average annual rate of $1,748. Another source lists Grange Insurance Association as the cheapest option, with an average annual rate of $1,023. It's important to note that insurance rates can vary significantly across different companies, so it's recommended to compare quotes from multiple insurers to find the best rate.

In addition to full coverage, there are also minimum coverage options available in California. The average cost of minimum coverage in the state is $597 per year or $50 per month. This includes bodily injury liability, property damage liability, and uninsured motorist coverage. However, it's worth noting that minimum coverage may not be sufficient in the event of a major accident, so it's important to consider your needs and choose the coverage level that provides adequate protection.

Companies offering cheap monthly premiums

Geico

Geico offers the cheapest car insurance in California, with average estimated rates of $31 per month or $373 per year for minimum liability coverage. Geico's rates are among the cheapest in the state for minimum and full coverage car insurance policies. The company offers a number of discounts for things like keeping a clean driving record, having vehicle safety features and getting good grades. Geico's average cost for full coverage car insurance in California is $153 per month or $1,837 per year. This is around 21% less expensive than the state average.

USAA

USAA offers auto insurance policies to members of the military, veterans and their families. USAA earned the top score in the J.D. Power 2023 U.S. Auto Insurance Study, with a score of 871 out of 1,000. USAA's average cost for full coverage car insurance in California is $1,959 per year or $163 per month. This sits at around 15% cheaper than the state average.

Mercury Insurance

Mercury Insurance is generally one of the cheapest options for policyholders who have an accident or DUI on their record. Mercury Insurance's average cost for full coverage car insurance in California is $146 per month or $1,748 per year. This makes it the cheapest overall for full coverage in California, with prices 24% cheaper than the state average. Mercury Insurance also offers discounts for things like good student grades, bundling auto policies with another coverage type, and having anti-theft devices installed in your car.

Progressive

Progressive can be a good option for high-risk California drivers due to its affordable rates for those with bad driving histories. Progressive's full coverage policies cost an average of $173 per month or $2,077 per year in California. This pricing stands at around 10% cheaper than the state average.

CSAA

CSAA, which stands for California State Automobile Association, offers car insurance in California and 22 other states. CSAA's full coverage policies cost an average of $2,497 per year. This rate is around 8% higher than the California state average. CSAA offers discounts for things like multi-vehicle policies, student drivers, good driving records, and verified mileage.

Average car insurance rates by city in California

The cost of car insurance in California varies depending on the city you live in. The average cost of car insurance in California is $2,599 per year for full coverage and $641 per year for minimum coverage. However, drivers in densely populated areas tend to have higher rates. For example, drivers in Los Angeles pay 36% more than the state average for full coverage, while the average cost in San Francisco is 13% more than the state average.

• Beverly Hills: $254 per month for full coverage.
• Mount Shasta: $113 per month.
• San Diego: $1,710 per year.
• Los Angeles: $2,576 per year.

The cost of car insurance in California is also influenced by various factors such as age, driving record, credit score, vehicle type, and coverage level. Younger drivers and those with a poor driving record tend to pay higher premiums. Opting for higher coverage limits and comprehensive insurance will also increase the cost of car insurance.

Frequently asked questions