Full Coverage Auto Insurance: California's Cost Breakdown

The average cost of full-coverage car insurance in California is $1,464 per year, or $122 per month. The average cost of a minimum coverage policy in California is $506 per year, or $42 per month. The cheapest car insurance in California is offered by Geico, at $124 per month for full coverage. The cost of car insurance in California is dependent on several factors, including age, driving history, location, and the type of vehicle.

How much is full coverage auto insurance in California per year?

The average cost of full-coverage auto insurance in California is $2,599 per year, according to Bankrate. However, other sources state that the average cost of full-coverage auto insurance in California is $1,464 per year, $1,659 per year, or $1,638 per year. The cost of full-coverage auto insurance in California is $193 per month or $2,313 per year, according to MarketWatch.

How much is full coverage auto insurance in California per month?

The cost of full-coverage auto insurance in California varies depending on the source of information. According to MoneyGeek, the average monthly cost is $122, while Bankrate places it at $217. MarketWatch, on the other hand, estimates the average monthly cost to be $193, and NerdWallet estimates it to be $138. The Zebra estimates the average yearly cost to be $1,713, which equates to $143 per month.

How much is minimum coverage auto insurance in California?

The minimum liability insurance requirements in California are as follows:

• $15,000 for injury/death to one person
• $30,000 for injury/death to more than one person
• $5,000 for damage to property

The average cost of minimum coverage in California is $641 per year, or $53 per month. However, according to another source, the average cost of minimum coverage in California is $506 per year, or $42 per month.

In California, insurance companies are banned from using a driver's gender or credit score to price insurance premiums. This means that drivers with poor credit may not necessarily pay more for a policy than those with good credit.

The cost of car insurance in California depends on factors such as age, driving history, and the type of vehicle.

What factors affect the cost of car insurance in California?

The cost of car insurance in California is influenced by a variety of factors, some of which are within the control of the driver, and some of which are not. Here are the key factors that affect the cost of car insurance in California:

Driving Record

The driving record is one of the most significant factors affecting car insurance rates. A clean driving record can result in lower insurance premiums, while accidents, traffic violations, and DUI convictions can increase premiums by varying amounts, depending on their severity. For instance, a DUI conviction can increase insurance rates by up to 155% in California.

Age and Driving Experience

Young and inexperienced drivers typically pay higher insurance rates as they are considered to be at a higher risk of accidents. Insurance rates start to decrease after the age of 25 and are cheapest for drivers in their 60s. However, rates may increase again for senior drivers over the age of 65 due to an increased likelihood of accidents and injuries.

Location

Urban areas, particularly densely populated cities, tend to have higher insurance rates than suburban or rural areas. This is because there is a higher risk of theft, accidents, and vandalism in these areas. Within California, insurance rates can vary by up to 91% depending on the zip code.

Coverage Levels and Deductibles

The cost of car insurance is also influenced by the chosen coverage levels and deductibles. Opting for higher coverage limits, such as comprehensive and collision insurance, will increase premiums. However, selecting a higher deductible can help mitigate this increase, as it means the driver will pay more out-of-pocket in the event of a claim.

Vehicle Type

The make, model, and age of the vehicle are also considered when determining insurance rates. High-value, high-performance, or frequently stolen vehicles tend to be more expensive to insure. Additionally, newer models may have higher premiums due to their increased value and repair costs.

Marital Status

Married individuals often benefit from lower insurance rates as they are considered less risky to insure. This is because married drivers tend to be older and more experienced, and having children may make them safer drivers.

Insurance History

A consistent insurance history is favourable when determining insurance rates. A lapse in coverage or a "coverage gap" can result in higher premiums as it indicates a higher risk to insurers.

Annual Mileage

The more miles driven in a year, the higher the insurance rates may be. This is because increased mileage elevates the risk of accidents.

How can I save money on car insurance in California?

How to Save Money on Car Insurance in California

There are several ways to save money on car insurance in California. Here are some strategies and tips to help you reduce your car insurance costs:

Shop Around and Compare Quotes

Don't just settle for the first insurance company you find. Prices differ from company to company, so it's worth getting quotes from multiple insurers to find the best deal. Get at least three quotes from different insurance companies and different types of insurance providers. Remember to compare identical coverage and limits for an accurate picture.

Switch Insurance Companies

Don't be afraid to switch insurance providers if you find a better deal. Many consumers who switch companies not only save money but also report higher satisfaction levels with their new insurer.

Increase Your Deductible

By choosing a higher deductible, you can significantly lower your premium costs. Just make sure you have enough money set aside to pay the higher deductible in case you need to file a claim.

Reduce Optional Insurance on Older Cars

If your older car is worth less than ten times your insurance premium, having comprehensive and collision coverage may not be cost-effective. Evaluate whether the cost of coverage is worth it, and consider dropping these coverages if your car is on its last legs.

Bundle Your Insurance Policies

Many insurance companies offer discounts if you purchase multiple types of insurance from them, such as homeowners and auto insurance, or if you insure more than one vehicle.

Maintain a Good Credit History

In most states, credit scores are a significant factor in determining insurance rates. Establishing and maintaining a solid credit history can help lower your insurance costs. Check your credit record regularly to ensure all information is accurate.

Take Advantage of Low Mileage Discounts

If you drive less than the average number of miles per year, you may be eligible for a low mileage discount. This can apply to drivers who carpool or have a shorter commute.

Ask About Group Insurance

Some companies offer reduced rates to drivers who get insurance through group plans, such as employer plans or alumni groups.

Seek Out Other Discounts

There are various other discounts your insurer may offer. For example, some companies provide discounts for safe driving records, taking a defensive driving course, or having safety features in your car.

Choose Your Vehicle Wisely

The type of car you drive affects your insurance premium. Safe and moderately priced vehicles, such as small SUVs, tend to be cheaper to insure than expensive or flashy cars. Compare insurance costs for different car models before buying.

Improve Your Credit Rating

Although California doesn't allow insurers to consider credit when setting rates, improving your credit rating can still be beneficial when seeking insurance in other states or for other financial reasons.

Consider Usage-Based Insurance

If you're a low-mileage driver, consider usage-based or pay-per-mile insurance to lower your costs. Companies like Metromile, Allstate, Nationwide, and Mile Auto offer these programs.

Remember to review your coverage regularly and make sure your insurance is in step with your needs. By following these tips, you can save money on your car insurance in California.

Frequently asked questions