Car insurance in California costs roughly $3,900 per year ($325 per month), based on a 2019 study by WalletHub. The cheapest car insurance companies in California charge less than $2,500 per year ($208 monthly). Some of the most expensive car insurance in California costs more than $9,000 per year.
These estimates are based on quotes for at least 30 zip codes in California, using a variety of driver profiles from the California insurance regulator’s database. The specific dollar amounts may change a bit based on driving history, age, location of residence, coverage levels and other factors. But the overall hierarchy of California car insurance companies should stay pretty much the same.
Companies with the Best California Car Insurance Rates:
California Capital Insurance Company
Aspire General Insurance Company
If you’re looking for new car insurance, these are good companies to start with. But keep in mind that insurance rates are affected by a range of factors. Learn more about them in WalletHub’s 2019 Report on Cheap Car Insurance in California.
It’s likely that your car insurance is so high because your driving record is poor, your car is expensive to insure, you live in a high-risk location, you’re carrying a lot of coverage, or you’re not taking full advantage of discounts. There may be other reasons, but these are the most common causes of too-high car insurance at the individual level. Car insurance is getting more expensive overall, too. For example, the price paid by typical drivers for car insurance has increased nearly 60% in the past 10 years.… read full answer
6 Reasons Why Your Car Insurance Bill Is So High
1. Poor Driving Record
Your driving record is probably the most important factor in determining your car insurance rates. If your record is poor, with accidents and driving violations, and you have a history of claims, your rates will be high. You will also pay more than average if you’re bad with credit, young (especially young and male), or unmarried.
2. Expensive-to-Insure Vehicle
Insurance companies like safe, boring cars that nobody wants to steal for joy-riding or parts. If you choose to drive something large, fast, luxurious, statistically unsafe on the road, or popular with thieves, you will pay more.
3. High-Risk Location
Where you live has a large impact on your premiums. Some areas of the country have much higher insurance costs than others. A number of factors go into this, such as the history of accidents in the area, population density, the number of uninsured drivers, crime statistics, bad weather patterns, etc. Also, if you live far from work and have a long daily commute, the high annual mileage will raise your rate.
4. High Coverage
If your coverages are high and your deductibles are low, you will be happy if you need to make a claim, but not as happy when you’re paying your premiums. If the insurance company risks having to pay out more in the future, you will have to pay more now.
5. Too Few Discounts
Insurers offer a very wide variety of discounts. Valued customer discounts offer savings for things like loyalty, multiple cars and policies, and paying online. Driver discounts may apply if you are a good driver, good student, belong to a certain profession or organization, are married, a non-drinker or more. Your car may also qualify for a discount if it has equipment that makes it safer to drive or harder to steal. Discounts are available to nearly everyone, and you may qualify for some that you aren’t getting credit for yet.
6. Costs Increasing Overall
Record-setting natural disasters such as Florida’s hurricanes and California’s wildfires, more phone-related distracted-driving accidents, insurance fraud, and expensive-to-repair car technology have increased the dollar amount of claims insurers have been called on to pay. As a result, insurers have been raising their prices to cover their expenses.
Since 2009, the price paid by typical drivers for car insurance has increased nearly 60%. Prices have gone up every year. This steady rise in insurance costs has outstripped other consumer costs. Even skyrocketing hospital costs lag slightly behind car insurance.
Cost of Living
You can’t reverse this industry-wide inflation. But if you want to lower your own insurance costs, address as many of your personal factors as you can. Then get quotes from multiple insurance companies and compare.
The average price for car insurance is $3,928 per year, according to a 2019 WalletHub study comparing quotes from 46 auto insurers in over 30 California cities. Car insurance prices vary by city and state, but California provides a fairly representative average because it is both the most populous state in the U.S., and in the middle of … read full answerWalletHub's state-by-state price rankings.
Although the overall average price of car insurance is just under $4,000 per year, affordability varies widely by company. Companies that rank in the top 25% for affordability have average annual premiums under $3,300. Companies in the bottom 25% cost from $4,400 to as much as $9,000 per year.
Age and experience matter greatly, of course. Even within the same company, a driver age 45-49 with a good driving record can pay less than half of the premium paid by a 20- to 24-year-old with a bad driving record. For example, Progressive’s average premium for an older good driver is $2,107 annually, compared to $6,880 per year for a younger driver with violations or accidents.
To learn more about how much car insurance costs and see which auto insurance companies are the least expensive in each state, check out WalletHub's 2020 Cheap Car Insurance Study.
Car insurance for a 23-year-old costs around $2,100 per year on average – about 33% more than the average U.S. driver pays for coverage. Age is one of the main factors insurance companies consider in setting premiums. Insurance statistics show that drivers age 21-24 are more likely than older drivers to be involved in car accidents.… read full answer
There are other factors that impact pricing, of course, including gender. Although the differences decrease over time, young male drivers are typically rated as higher risks and are charged higher premiums than young female drivers. The average premium for a 23-year-old female is about $2,000 per year, while it’s more than $2,200 for a 23-year-old male.
Another major factor is the type and level of coverage you plan to buy. The average annual premium of $2,100 is based on a policy that includes comprehensive and collision coverage. If you only want to purchase the minimum liability insurance coverage that’s required by your state, the average cost for a 23-year-old driver is about $730 per year.
The state you live in and the insurer you choose will also affect the amount you pay for car insurance. USAA (military families only) and GEICO are two companies that offer lower rates for young drivers, including 23-year-olds. However, the best way to find the cheapest policy is to get 3 to 5 free quotes and compare.
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