Car insurance California costs are higher than the national average, with the average full coverage policy running around $2,065 and the minimum coverage averaging $733 per year. In California, drivers are required to carry minimum liability, which includes:
- $15,000 per person in bodily injury liability.
- $30,000 per accident in bodily injury liability.
- $5000 per accident for property damage liability.
All insurers are required to offer uninsured and underinsured bodily injury and uninsured motor property damage in the state. However, you have the right to decline these options if you choose. According to Bankrate.com, you are not required to carry any collision or comprehensive coverage in the state, but if your vehicle is financed, oftentimes, the lender will require it.
Cheap Car Insurance in California
Since California coverage rates can be expensive, it is worth shopping around to find a company with the best rates that can provide you with the coverages you need. Below are some of the California companies that boast some of the lowest annual premium rates.
- Esurance: $1164
- Progressive: $1568
- California Capital: $1621
- Mercury: $1643
- 21st Century: $1665
- USAA: $1666
- Allstate: $1694
Car Insurance California by Age Bracket
A major factor that plays a role in the total cost that you will pay for your annual insurance premium is the age bracket you fall in. Younger drivers have less experience, which puts them at a higher risk of being involved in an accident, Nerdwalqwlet.com states. Because of this, those between the ages of 16 and 25 will pay the highest rates, though there is a significant drop when a driver turns 20. 50 and 60-year-olds will see the best rates with a slight increase when they turn 70. Below is the average annual premium based on age brackets.
- 16: $7186
- 17: $6784
- 18: $6185
- 19: $4481
- 20s: $2636
- 30s: $1817
- 40s: $1765
- 50s: $1678
- 60s: $1678
- 70s: $1932
Car Insurance California by Marital Status
Marital status also plays a role in the rates you will pay for your auto insurance, according to Valuepenguin.com. Married drivers actually pay an average of $77 less per year than their single counterparts. The reason for the reduction is statistics show that married drivers often share driving duties which mean less time on the road and a lower risk of accidents. Below is the average cost you can expect to pay in California based on your marital status.
- Single: $1868
- Married: $1791
- Divorced: $1868
- Widowed: $1816
Does Credit Score Affect Your Car Insurance in California?
While many states will base annual insurance premiums on a driver’s credit score, it is illegal to do so in California. So while your age, marital status, and driving record will affect your rates, your credit score and history will not.
California Car Insurance by Driving History
One of the most significant factors affecting your annual average car insurance rates is your driving history. Driving history is an indication to insurance companies of the likelihood of you being involved in an accident or filing some type of claim. Those with good driving records will see the lowest rates, while those with violations can see rates almost double with some offenses.
As mentioned by Thezebra.com, having a DUI on your record is one of the violations that can cause you to have the highest rates. On average, drivers with one DUI can pay around $4075 per year. Some companies offer better rates to those with DUI on their record, though most drivers will still pay almost $1000 over the average of those with a clean record. Below are some of the California companies that offer the best rates for drivers with a DUI.
- Mercury: $2377
- Esurance: $2626
- Progressive: $2710
- Farmers: $2833
- GEICO: $2984
Having one speeding ticket on your record can lead to an increase of more than $600 to your insurance policy per year, says Moneygeek.com. On average, drivers in California with one ticket will pay $2057 per year. Some companies are more competitive with their rates for drivers with speeding tickets. Below are some of the cheapest in the states.
- USAA: $1280
- Esurance: $1337
- CSAA: $1704
- MetLife: $1707
- AAA: $1743
Insurance Companies in California
There are several companies offering car insurance in California. Some companies are national, others are local or regionally centralized, and some are available only to certain members. One of the companies offering some of the lowest rates in the state is USAA. They offer great rates and many discounts but are only available to military members, spouses, and dependents.
GEICO is another popular option in California, not only for low rates but also for its discounts and convenient apps. Their mobile app allows you to have your policy card at your fingertips, lets you manage your policy, make a payment, and file a claim.
Progressive Insurance also has an online quoting and policy management system that receives high marks. They also have received top ratings for customer service and claim filing. Progressive has a wide variety of discount options and several unique coverages, such as MedPay and gap insurance.
State Farm is in the moderate range when it comes to price in California, but they are popular with customers who prefer one-on-one interaction with a local agent. They offer a variety of insurance coverages and also have a significant number of discounts, such as good driver and good student discounts, which can help to seriously reduce their annual premiums.
There are plenty of options for car insurance in California, which allows customers to shop around to find a policy that fits all of their needs at a price they can afford.
Check this out if you need additional information, resources, or guidance on car insurance.
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