Anamarie Waite, Car Insurance Writer
@anamarie.waite
You can get car insurance discounts in California based on how you drive, the car you own, and your relationship with your insurance company. In California, car insurance companies are allowed to consider factors like marital status, driving experience, and insurance history when setting premiums. That means there are also discounts available for being married or driving safely over time. In California, insurance companies cannot use customer loyalty to determine rates. That means you can't get discounts for staying with the same company for a long time.
Almost anyone can get a discount on car insurance in California because most insurance companies make it easy to qualify for a variety of savings. California insurers typically offer discounts that fall into one of three categories—policy discounts, driver discounts, and vehicle discounts.
Policy discounts typically reward customer behavior that is desirable to the insurance company. For example, most California drivers can save by registering for paperless billing or getting both home and auto policies from the same company. Driver discounts are available to California residents who are lower-risk to insure, like those with clean driving records. And vehicle discounts help drivers save if their car has certain safety features or anti-theft systems.
Car Insurance Discounts in California
| Discount | How It Works | Potential Savings |
| Customer Loyalty | Customer loyalty discounts are not available in California because state laws prevent insurance companies from adjusting rates based on the likelihood a customer will not switch companies. | Up to 10% |
| Good Driver | California state law requires insurance companies provide at least a 20% discount to all drivers who have been continuously insured for at least three years and who have one point or less on their driving record. | 10% to 30% |
| Driver Education | Insurance companies are required by state law to provide a discount to older drivers who complete an approved defensive driving course. Drivers must be 50 years of age or older to qualify. | 5% to 10% |
| Continuously Insured | Drivers who have been insured for 6 months or more save on insurance. | 5% to 25% |
| Billing and Payments | If you pay for your policy in full, set up automatic payments, pay online, or go paperless, you can save. | 2% to 25% |
| Policy Bundling | Insure multiple vehicles or get different policy types (like home and auto) from the same company can earn a discount. | 1% to 12% |
| Good Student | Young drivers with a “B” average or higher are eligible for discounts. | 5% to 20% |
| Usage-Based | Some insurance companies offer discounts for drivers who are willing to have their driving habits monitored by an electronic device attached to your car and/or your smartphone. | 1% to 30% |
| Safety Features | Cars featuring multiple airbags, anti-lock brakes, daytime running lights, and other safety add-ons can save on car insurance. | 2% to 30% |
| Anti-Theft Systems | Car alarms, LoJack, steering wheel locks, or other anti-theft features can make comprehensive coverage more affordable. | 5% to 25% |
Remember, discounts vary among different insurance companies, so it’s always best to contact the provider directly to determine which discounts you qualify for.
People also ask
Why is California car insurance so expensive?
Car insurance in California is expensive because the state has multiple densely populated, high-crime urban areas. In California, you can expect to pay around $4,556 per year for full coverage car insurance, compared to the national average of $4,211 per year. Car insurance in California is about the same as the national average, which is around $4,211 per year for full coverage and about $1,407 per year for minimum coverage.
The cost of car insurance is steadily increasing, too, both in California and nationwide....
read full answerWhat is the minimum car insurance requirement in California?
The car insurance coverage required by California law is a minimum of $15,000 in bodily injury liability coverage per person, a minimum of $30,000 in bodily injury liability coverage per accident, and a minimum of $5,000 for property damage liability.
Bodily injury liability coverage helps pay for another person’s injuries in a car accident when you are at fault. Property damage liability coverage helps pay for the other person’s car. Your insurance company pays up to the...
read full answerWhat is the penalty for driving without insurance in California?
The penalties for driving without insurance in California can include fines up to $200, fines and the impoundment of your car. Penalties for repeat offenses may be even harsher, including fines up to $500.
Penalties for Driving Without Insurance in California
| Type of Offense | License and/or Registration Suspended? | Car Impounded? | Jail Time? | SR-22 Required? | Maximum Fines & Fees |
| No Proof of Insurance (Can Prove Coverage Later) | No | Yes | No | No | $360-$720 |
| 1ST Offense With No Coverage | No | Yes | No | Yes, if you cause an accident | $100 - $200 plus penalty assessments of $260-$520 |
| Repeat Offense (No Coverage) | No | Yes | No | Yes, if you cause an accident | $200 - $500 plus penalty assessments of $520-$1,300 |
Not having car insurance and not being able to prove that you have it are two different violations. If you have insurance but cannot prove it when you get pulled over or at the scene of an accident, you are guilty of an “administrative violation”, similar to a seat-belt ticket. In California, your citation might be dismissed if you can provide the court with proof of valid insurance for the date of the citation before your court date.
Driving without car insurance at all is much more serious, and the penalties are more severe. In addition to the legal consequences, you can also expect your car insurance premium to go up.
You can avoid these consequences by meeting California's minimum car insurance requirements.
Required Car Insurance in California
- $15,000 in bodily injury liability coverage per person
- $30,000 in bodily injury liability coverage per accident
- $5,000 in property damage liability coverage per accident
The key to maintaining the minimum amount of coverage required by California is to find a policy you can afford. If your coverage has already lapsed, start by comparing quotes from the insurance companies WalletHub's analysis identified as having the best post-lapse rates.
Best Car Insurance in California After a Lapse in Coverage
- Grange
- Wawanesa
- USAA
- Geico
- Mercury
Drivers in California pay an average of $1,291 per year to maintain the minimum amount of coverage. That's nothing compared to the consequences of driving without insurance, especially if you get into an accident.
What Happens If You Get Into a Car Accident Without Insurance in California?
1. If you get into an accident: all penalties will apply.
If you get into an accident while driving without insurance in California, you will incur the penalties for driving without insurance no matter who is at fault. Driving uninsured can make it difficult to be compensated for damages if you are not at fault and can have long-lasting and life-changing consequences if you are at fault.
2. If the accident is your fault: you'll have to pay for all the damages out of your own pocket.
In addition to the legal consequences of driving without insurance, you could easily be responsible for tens of thousands of dollars or more in damages to your vehicle, the other driver's car repairs and hospital bills, and your own medical care. You could face mounting debt or even bankruptcy, especially if the other driver doesn't carry uninsured motorist coverage or personal injury protection.
3. Even if you were not at fault or only partially at fault, there will be other consequences.
Driving uninsured doesn't negate the other driver's fault entirely, but you're almost certainly going to be penalized and unable to recover everything you would be entitled to if you had insurance. In at-fault states such as California, the driver who caused the accident is usually responsible for damage to your car and any medical treatment you may need. However, California is a “no pay, no play” state, which means drivers cannot pursue certain damages after an accident, regardless of fault, if they were uninsured at the time the accident occurred. In California, no pay, no play means you cannot recover non-economic damages (e.g., pain and suffering or emotional stress) if you were driving uninsured, unless the at-fault driver was intoxicated, acted with intent, or fled the scene.
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