Paul Sanchez
Auto insurance is an important purchase, but finding cheap car insurance isn't always easy. The best way to find cheap car insurance is to compare rates from multiple insurers.
The cheapest car insurance in California is Geico at $239 per year, or $20 per month, according to NerdWallet's August 2024 analysis of average minimum coverage rates. Meanwhile, the average cost of minimum coverage in California is $462 per year, or about $39 per month.
The average cost of car insurance in California is $155 per month for full coverage. But the cost of car insurance varies by up to $141 per month based on where you live.
The average cost of a full coverage car insurance policy in California is $1,855 per year. But the cost of car insurance varies by up to $141 per month based on where you live.
The cheapest car insurance company in California for most drivers is Geico. It costs an average of $35 per month for minimum coverage and $124 per month for full coverage. Mercury has the best rates for drivers with an accident or DUI on their record.
The average cost of car insurance in California for a minimum liability policy is $47 per month. The average cost for a full coverage policy is $155 per month.
The cost of car insurance in California is cheaper than average compared to other states. California ranks as the 22nd-cheapest state for minimum coverage insurance. It is the 15th-cheapest state for full coverage policies.
What You'll Learn
Liability insurance
The two primary facets of liability car insurance are bodily injury liability and property damage liability. Bodily injury liability comes into play when individuals are injured in an accident where the policyholder is at fault. This coverage extends to medical treatment, legal costs, and other expenses incurred by the injured party. Property damage liability, on the other hand, covers the costs of repairing or replacing the vehicles and other property of other drivers involved in the accident.
When selecting a liability insurance policy, it's important to consider the limits of coverage. There are typically separate limits for bodily injury liability per person, bodily injury liability per accident, and property damage liability per accident. These limits dictate the maximum amount that the insurance company will pay out for injuries and property damage resulting from a single accident. It's advisable to choose liability coverage limits that are commensurate with or exceed your total net worth to ensure adequate protection.
While liability insurance is a fundamental aspect of auto insurance, it's important to recognize that it doesn't cover damages to the policyholder's own vehicle or person. For that, additional coverage options, such as collision and comprehensive insurance, would be necessary. These optional coverages can protect your own vehicle in the event of an accident, regardless of who is at fault.
In summary, liability insurance is an essential safeguard for drivers, providing financial protection in the event of causing injury or property damage to others. By understanding the components and limits of liability insurance, drivers can make informed decisions about their coverage needs and ensure they have the appropriate level of protection.
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Collision insurance
When choosing collision insurance, consider factors such as the cost of your car and its potential repair costs, as well as your willingness to pay for repairs under the deductible amount. A higher collision deductible can lower your monthly premium, but it also means you'll cover more of the repair costs when needed.
In summary, collision insurance provides valuable coverage for drivers concerned about potential collision-related damage to their vehicles. By understanding the benefits, costs, and considerations, you can make an informed decision about whether collision insurance is a good fit for your auto insurance needs.
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Comprehensive insurance
Comprehensive coverage is often confused with collision coverage. While both types of insurance protect your vehicle, collision coverage is there if you get into a collision, whereas comprehensive coverage is for non-collision events outside of your control.
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Uninsured motorist insurance
Uninsured motorist coverage typically includes two types of protection: uninsured motorist bodily injury (UMBI) and uninsured motorist property damage (UMPD). UMBI covers medical bills for both you and your passengers, while UMPD covers repairs to your vehicle. In some states, underinsured motorist coverage is also available, which protects you if you are hit by a driver whose insurance policy limits won't cover your vehicle damages or bodily injury expenses.
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Underinsured motorist insurance
- Bodily injury coverage, which covers medical bills and may also cover lost wages.
- Property damage coverage, which covers the cost to repair or replace your vehicle.
However, in some states, only bodily injury coverage is available. It's important to note that underinsured motorist insurance does not apply to hit-and-run accidents, as these are typically classified as uninsured motorist incidents.
The definition of "underinsured" and the availability of underinsured motorist coverage vary by state. Some states require drivers to have this type of insurance, while in others, it can be purchased as an endorsement on an auto insurance policy.
Adding underinsured motorist coverage to your auto insurance package can provide an extra level of protection and help cover costs that may not be covered by the at-fault driver's insurance policy. This type of insurance can give you peace of mind and financial protection in the event of an accident with an underinsured driver.
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Frequently asked questions
The cost of car insurance depends on a variety of factors, including your age, location, credit score, driving history, and type of vehicle.
Full coverage car insurance is a combination of liability, collision, and comprehensive insurance. It also includes coverage required by your state, such as uninsured/underinsured motorist coverage, personal injury protection (PIP), or medical payments (MedPay).
Liability car insurance provides financial protection if you're legally responsible for an accident that resulted in bodily injury, death, or property damage. It may also apply if someone else is driving your vehicle and is at fault for an accident.
Comprehensive car insurance covers damage to your vehicle caused by something other than a collision, such as natural disasters, fire, theft, damage from animals, or vandalism.
Collision car insurance provides coverage when your vehicle collides with another object, such as another vehicle or a telephone pole. It also covers damage from a single-vehicle rollover or a hit-and-run accident.
