Best Car Insurance in California

Car insurance in California costs roughly $114 per month, or $1,369 per year, on average. That is more than drivers in other states typically pay for car insurance.

How Much Insurance Costs in California for:

• Good drivers: $985
• New student drivers: $6,177
• High-risk drivers: $2,842

Where California Insurance Rates Rank Nationally

California ranks 42 out of 50 for the most affordable car insurance rates in the U.S. For context, Michigan has the most expensive insurance in the country, with drivers paying an average of $2,693 per year. And on the other end of the spectrum, Maine has the lowest average car insurance rate, at $896 per year.

Below, you can see how car insurance costs in California compare to rates in other states.

Why Is California Car Insurance So Expensive?

High Crime Rate

California has a moderate crime rate compared to other parts of the country. Higher crime means a higher likelihood of vandalism or theft, which raises insurance rates. So California's insurance costs more than states with less crime.

Higher Insurance Requirements

State laws affect insurance costs, too. California has higher insurance requirements than many other states, which means insurance is slightly more expensive.

In addition to these statewide factors influencing car insurance costs, your personal information also affects the price you pay for insurance. Some of the most impactful data points are high-risk violations on your record (e.g. DUI), your age, and your car's make and model.

Whether you are considered a responsible or high-risk driver, it is always worthwhile to compare costs between several insurance companies. In other words, make sure to shop around to find a good deal for your demographic.

Car insurance in California is expensive because the state has multiple densely populated, high-crime urban areas. In California, you can expect to pay approximately $1,780 per year for full coverage car insurance or $636 per year for minimum coverage. Car insurance in California is more expensive than the national average, which is around $1,500 annually for full coverage and about $600 per year for minimum coverage.

The cost of car insurance is steadily increasing, too, both in California and nationwide. As the cost of providing insurance goes up, the premiums insurers charge also rise. All insured drivers share the increasing cost of insurance. That is why your rates tend to go up every time your policy is renewed, regardless of whether any individual factors—like your driving record or location—have changed.

There are several unique reasons why car insurance goes up every year in California, too, even if your details remain the same.

Top Reasons Car Insurance Is Expensive in California

• People in California are driving more

As a result, the number of accidents, claims, and payouts is rising, too. In California, there were approximately 3,304 fatal crashes in 2018, versus 3,074 fatal crashes in 2014.

• California auto repairs are getting more expensive

Another reason California auto insurance is getting more expensive is that cars are becoming more expensive to repair. In 2016, the average cost of car repairs in California was $892.55, up from $752.78 in 2012. Vehicles today cost more to repair due to all the technology and features inside them now.

• People in California drive uninsured

As the cost of car insurance continues to rise, more drivers take the risk of driving without car insurance. In 2015, 15% of drivers lacked even minimum liability insurance in California. The cost of uninsured drivers is passed on to consumers through higher premiums.

• Healthcare in California is getting more expensive

Car insurance companies are hit hardest when paying out claims involving medical bills, and it's not getting any cheaper. Healthcare spending increases by an average of 5.7% every year in California.

• California is experiencing more severe weather

In California, severe weather events like wildfires, droughts, and flooding are becoming increasingly common. These weather events cause insurers to pay out a higher number of claims, which tend to be more expensive and less predictable. As a result, they have to raise rates to keep pace.

However, there could be other issues elevating your rates.

If your driving record is clean and your rates are still high, your car insurance might be expensive because of your:

Age. Drivers under 25 and older than 65 pay more for auto coverage because they are statistically more likely to be involved in serious and fatal accidents. In California, 16-year-old drivers pay an average of $7,656, 25-year-old drivers pay an average of $2,609, and people over 65 pay an average of $1,848.

Location and driving patterns. Population-dense cities have higher premiums than rural areas because city living usually means more accidents, more property crime, and more frequent claims. In California, the most expensive locations for insurance are Paramount, Huntington Beach, and Mission Viejo. You can also expect rates to change based on your driving patterns—long commutes or regular driving in high-risk areas can cost you.

Financial responsibility. In California, drivers with no credit pay 0% more on their premiums than drivers with excellent credit. You can also demonstrate financial responsibility by maintaining minimum car insurance with no gaps in coverage. Letting your coverage lapse could raise your rate by as much as 6% in California, when you get your next policy.

Claims history. You should avoid filing small claims that can drive up your premiums. In California, the average collision claim raises a driver's rates by $1,351.20, which amounts to $4,054 over the course of three years. If you have a $500 deductible and a $1,500 claim, you'll end up paying $4,554 through insurance, versus $1,500 out of pocket. In that case, filing a claim is not the best choice.

How to Get Cheaper Car Insurance in California

Multiple factors affect the cost of car insurance. Some things you can't control, but you do have a say in most of the contributing factors. Driving safely, obeying traffic laws, and keeping a clean driving record are the best ways to keep your insurance costs down.

Other than that, the best way to lower your car insurance costs is to compare rates from at least three insurance companies. Ideally, you should check your rates every 6-12 months, when you renew your policy. But at a minimum, be sure to check your record and shop for rates every three to five years, since you may be able to get a lower rate if a traffic violation falls off your record.

In California, the most expensive policies cost roughly $2,033, and the least expensive coverage costs around $942, when all driver profile information is the same. That means you could save as much as $1,091 simply by shopping around. Be sure to confirm you're getting all the discounts you're eligible for, too.

The best car insurance companies in California for young adults are Wawanesa, USAA, and CAAA. The best car insurance for young adults in California offers great coverage at an affordable price, especially for young drivers with a few years of experience behind the wheel. Insurance companies cannot use your age as a determining factor in setting premiums in California. But they can consider how many years of driving experience you have, as well as how many years you have been continuously insured. This is why young adults still tend to pay more for car insurance than older, more experienced drivers.

Quotes for the same driver can vary by as much as $1,000 in California, so it's important for young adults to compare rates for the cheapest insurance. And there are a few notable options to put at the top of the queue when doing so.

The Best Car Insurance Companies in California for Young Adults

• Wawanesa: $1,035 per year
• USAA: $1,165 per year
• CSAA: $1,232 per year
• Mercury: $1,313 per year
• Progressive: $1,328 per year
• Geico: $1,756 per year

The best auto insurance in California also has high customer satisfaction ratings, especially when it comes to resolving claims.

The best car insurance companies in California for seniors are Geico, CSAA, and USAA. The best car insurance for seniors in California is affordable, yet provides enough coverage to keep up with the changing needs of older drivers. Seniors get into more car accidents than middle-aged drivers, for example. About 10% of fatal crashes in California involve a driver who is at least 65 years old. This is why older drivers may see their rates go up for the first time in decades.

As a result, seniors in California with miles of driving ahead of them should make sure to compare quotes for cheaper insurance.

The Best Auto Insurance Companies for Seniors in California

• Geico: $507 per year
• CSAA: $617 per year
• USAA: $639 per year
• Wawanesa: $662 per year
• The Hartford: $754 per year

The best car insurance companies in California provide a hassle-free claims process and top-notch customer service. They also have discounts for seniors who take a defensive driving course and low-mileage or usage-based coverage for retirees who are no longer commuting to work every day.

Some of the best car insurance companies for California drivers with a DUI are Mercury, Geico, and State Farm. These companies offer rates that are more affordable than average, have high customer satisfaction ratings, and will file an SR-22 if you need it.

Still, post-DUI car insurance won't be cheap for California drivers. Even the best car insurance in California for drivers with a DUI will cost 75% to 250% more than the average for drivers with a clean record. Premiums increase by an average of about 180% after a DUI conviction in California.

As a result, it's all the more important to compare quotes in search of a reasonable rate after getting a DUI in California. That's true across the country, but California state laws don't allow insurance companies to use factors like age, gender, or credit history to set your premium. That only increases the impact of your driving record.