Cheapest Car Insurance in California: California appears to take the prize for having everything a visitor or resident could want: a long Pacific Ocean coastline, rugged wilderness for hiking and camping, vineyards and wine galore, celebrity sightings, theme and adventure parks, culinary delights, and so much more. The Golden State is thus named for a reason: its economy is the world’s largest sub-national economy. Furthermore, golden sunshine offers numerous options for enjoyment in the sun.
How Much is Car Insurance in California?
The state average rate for full-coverage vehicle insurance in California is $2,065 per year. Although higher than the national average of around $1,738, California premiums are not among the highest in the country. The average yearly cost of the state-mandated minimum liability coverage is $733, which is significantly higher than the national average of $480.
Because numerous individual factors influence California auto insurance prices, you are unlikely to pay either of these sums for your coverage. Having a clean driving record and operating a safe, affordable mid-size automobile will almost certainly result in cheaper rates.
What Is the Average Premium for Cheap Full Coverage Car Insurance in California?
In California, the average monthly premium for a full coverage policy is $172. It includes liability insurance as well as comprehensive and collision coverage. If you finance your vehicle, your lender will need you to have a full coverage auto policy. Otherwise, some drivers pick it because it provides significantly more financial protection than the bare minimum of liability coverage.
How Much Is it for Cheap Liability Insurance or the Minimum Required Car Insurance in California?
In California, the average monthly premium for statutory minimum liability auto insurance is $61. That appears to be a good offer at first glance. However, paying the least money for the least coverage puts many drivers in jeopardy since they don’t have enough cash saved to cover themselves and others in the event of an accident.
Because California is an at-fault state, your basic liability policy will pay for the other driver’s injuries, medical bills, and property damage if you caused the accident. If someone else was at fault for the accident, their liability (if they have it) will be applied to your injuries and losses. Your own liability coverage will never be used to meet your expenses. As a result, some drivers prefer to carry additional insurance in case of an accident. If you are found to be the at-fault driver and do not have sufficient insurance, you may find yourself spending a lot of money unexpectedly.
Uninsured and underinsured motorist coverage are two other types of insurance to critically consider. These extra auto insurance packages will assist you in covering your costs if you are involved in an accident caused by a driver who does not have insurance, is a hit-and-run driver, or does not have enough insurance to cover your claims. When insurance companies have finished paying the amount needed by policy limits, anything left over must come from someone’s pocket.
How do Rates Compare across Major Cities in California?
California is the third-largest state, with several diverse and densely populated metropolitan centers such as Los Angeles, San Diego, and Fresno, as well as numerous rural areas. Your car insurance premiums will be affected by your location. Here are some monthly insurance cost comparisons for several California areas.
| City | Full Coverage Insurance | Liability Insurance Coverage |
|---|---|---|
| San Jose | $174 | $51 |
| San Diego | $172 | $49 |
| Fresno | $176 | $53 |
| Bakersfield | $182 | $53 |
| Anaheim | $202 | $63 |
| Long Beach | $227 | $66 |
| Sacramento | $215 | $64 |
| Oakland | $231 | $59 |
| San Francisco | $233 | $64 |
| Los Angeles | $268 | $76 |
Are There Good Driver Discounts in California?
Good drivers, rejoice! Drivers in California can take advantage of the state’s Good Driver Discount scheme. If you qualify, you can get a 20% discount on your rates. The following requirements must be met:
- You must have been a licensed California driver for the last three years.
- You must have had no more than one driving point in the previous three years.
- You have not attended traffic school due to traffic infractions.
- You have not been involved in an at-fault accident that resulted in injury or death. However, not-at-fault collisions may still result in driving points that preclude eligibility.
- You have no prior DUIs or other alcohol-related convictions. A DUI conviction stays on your record for ten years before being expunged.
California Car Insurance Laws
The first priority of California car insurance legislation is to keep drivers safe on the road. Only providing a fair pricing balance between suppliers and policyholders comes second.
In many ways, California drivers might feel protected by the law. As previously stated, the Good Driver Discount is substantial, not only for your wallet but also for encouraging safe driving behavior. Furthermore, as mentioned below, there are necessary policy requirements for everyone in order to safeguard drivers from other drivers.
However, it is not unusual for drivers in California to break the law and drive without insurance. Drivers will understand the limits of mandated protection and why everyone should follow the laws if they are responsible and informed.
What are the Mandatory Car Insurance Requirements in California?
According to the California Department of Motor Vehicles, the minimum needed insurance in California is liability insurance.
Liability insurance is a type of car insurance that compensates someone other than the policyholder for bodily harm or property damage caused by a covered occurrence. California’s minimum liability insurance requirements are as follows:
- $15,000 for one person’s bodily harm/death.
- $30,000 for more than one person’s injuries or death.
- Property damage is worth $5,000.
Being insured with the bare minimum of liability might sometimes leave you underinsured. If you cause a car accident and the bills for the other people’s injuries and damages exceed your policy limits, you will be responsible for paying these charges out of pocket. You could be sued for any amount that your insurance does not cover. You can always enhance your liability insurance coverage.
What is the Penalty for Driving Without Insurance in California?
It is never a smart idea to drive without evidence of auto insurance. Drivers caught driving without proof of car insurance in California face fines, license suspension, vehicle confiscation, and other penalties, depending on the severity and number of offenses. Insurance firms are required by law to electronically report new policies, expired policies, and canceled policies to the DMV in real-time. Driving without insurance in California carries the following penalties:
- First offense: $100 to $250 fine, penalty fees, and possibly car impoundment.
- Second offense – A fine of between $200 and $500, with penalty assessments, and car impoundment.
Penalty assessments are at the discretion of the local officer reviewing your case, but they can be harsh. For example, if the local office is very strict about auto insurance laws, your $100 fine could balloon to $390 once the maximum penalty assessments are applied. You may find out more about penalty assessments here.
What Factors Does California Law Allow in Determining Your Premiums?
Drivers seeking low-cost auto insurance want to understand how their premiums are calculated. You can attempt to control your costs if you understand what goes into a computation.
When deciding your automobile insurance rate, your insurance company may consider a variety of criteria. Some of the most common are listed below. Fortunately, insurance carriers in California are not permitted to utilize credit scores or gender when determining rates for drivers. However, insurance companies will take your situation into account.
- Age
- Education & Occupation
- Marital status
- Zip code
- Car type
- Driving history
Am I Required to Report an Accident in California to Authorities?
You must notify the California DMV within 10 days of a motor vehicle accident if:
- Nobody was hurt or killed.
- There was more than $1,000 in damage.
That is a fairly low threshold, which implies the DMV expects you to report all incidents, even minor fender benders. The California DMV will require you to fill out an SR-1 form.
What is Driving Like in California?
How Many Car Accidents Happen in California?
Car accidents, unfortunately, are the largest cause of unintentional deaths in California. According to the most recent figures, 3,316 fatal accidents happened in 2019 (3,606 people died as a result of those fatal accidents). One thousand six hundred of these were due to alcohol impairment. There were 474 motorcycle deaths and 164 teen motor vehicle deaths. In 2019, there were 972 pedestrian fatalities and 133 bicycle fatalities.
Here is a breakdown of total accidents in California in 2019.
| County | Total Accidents |
|---|---|
| Los Angeles | 91,468 |
| Orange | 23,103 |
| San Diego | 21,534 |
| San Bernardino | 16,263 |
| Riverside | 15,551 |
How Many Uninsured/Underinsured Motorists Are in California?
According to California statistics, up to 15.2% of its drivers are driving without insurance. One out of every seven people driving on California roadways next to you may be driving without insurance. Covering yourself with uninsured motorist insurance will keep you safe.
California Insurance Resources
- SR-22 Insurance in California
- Liability Auto Insurance in California
- DUI Insurance in California
People Also Ask
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Can an Undocumented Worker get Cheap Car Insurance in California?
Yes. California is one of the few states that allows illegal immigrants to receive a special driver’s license. In most cases, insurance companies will refuse to insure someone who does not have a driver’s license. An illegal worker can acquire a quote from an insurance company by obtaining an AB 60 driver’s license.
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How much is car insurance per month in California?
On average, car insurance in California costs $60 per month or $717 per year for minimal coverage.
