From Zuma Beach to Redwood National Park, California is known for its amazing attractions and natural beauty. But according to the US Bureau of Economic Analysis, it’s also one of the most expensive states to live in, second only to Hawaii.

The rising cost of living is also reflected in car insurance premiums; The average cost of auto insurance in California is about 7% higher than the national average.

Main sockets:

  • The average cost of auto insurance in California is $1,633 annually.

  • Los Angeles and San Francisco residents have the highest average premiums.

How much does car insurance cost in California?

Like most things in California, auto insurance premiums are more expensive than in other states. The average national insurance premium for full coverage—insurance that includes liability, collision, and comprehensive coverage—is $1,529, but the average annual premium in California is $1,633.

Average cost of auto insurance in california by provider

A number of insurance companies write auto insurance policies in California. Geico’s average rates were the cheapest of the seven companies we evaluated for both full coverage and minimum state coverage. In contrast, Allstate was much more expensive for full coverage policies, costing hundreds more per year.

How does credit score affect auto insurance rates in California?

In most states, auto insurance companies can use your credit report and credit score to determine your premiums. However, California is one of the few exceptions that prohibits or limits the use of credit scores in calculating rates—insurers cannot use your credit history or score for underwriting or rating policies.

However, we have found that those with excellent credit often have lower rates than those with poor or fair credit. The discrepancy could be due to other factors; For example, young drivers tend to have lower credit scores because they haven’t had time to establish their credit.

However, even if credit is not factored in, it is more expensive to insure young drivers because they historically have a higher probability of getting into an accident.

Average auto insurance rates for high-risk drivers in California

High-risk drivers are individuals who are more likely to file claims or get into accidents. Insurance companies consider high-risk drivers such as those with speeding tickets, driving under the influence (DUI), or at-fault accidents, and charge much higher premiums.

Depending on the driving offense, you could see a significant increase. For example, people with DUI may see their rates increase by more than $3,000 annually.

* A clean driving record with good credit is assumed

How does age affect auto insurance rates in California?

Age plays a huge role in determining your car insurance premiums. Young drivers are more likely to get into accidents than other age groups, so they tend to get higher premiums. But once you reach the age of 30, the rates drop. You can enjoy these lower prices until around 60, when prices start to rise again.

California auto insurance rates by city

Your location is another major factor in determining your credit. In general, drivers in urban areas pay more than those who live in rural or suburban areas, and locations with higher crime rates tend to be more expensive.

In California, Los Angeles is the most expensive city for car insurance, averaging $2,670 annually. This is not surprising, given that NeighborhoodScout gave the city a “9” on its crime index, which means that 91% of American cities are safer than Los Angeles.

CA minimum auto insurance requirements

In California, all drivers must have proof of financial responsibility. But this can take several forms:

  • Car insurance policy

  • $35,000 cash deposit with the Department of Motor Vehicles (DMV)

  • A self-insured certificate issued by the DMV

  • A surety bond of $35,000 or more from a company licensed to do business within the state

The majority of drivers will meet these requirements through a car insurance policy. For automatic coverage, drivers must meet the following minimum liability coverage:

  • $15,000 for the injury or death of one person

  • $30,000 for the injury or death of more than one person

  • $5,000 for property damage

How to save money on auto insurance in california

You can save money on auto insurance in California by following these tips:

  • Compare premiums: Auto insurance rates can vary by company, so shopping around and asking for quotes from the best auto insurance companies can help you get the same or better coverage for less.

  • Link your car insurance with other documents: If you have renters or homeowners insurance, you may qualify for a discount if you also purchase auto coverage from the same insurance company.

  • Talk to your agent about discounts: Insurance companies usually have discount programs for drivers with clean driving records, students, or those who complete safe driving courses.

  • Increase your deductible: Your premiums are based in part on your deductible, which is the amount you have to cover before your insurance company will pay for repairs or damage. Boosting your deductible can lower your premium, but make sure you can comfortably afford it before increasing it.


Our analysis was conducted using six different auto insurance markets to determine the average cost of auto insurance in each state. The data we analyzed included coverage premiums from up to 10 different insurance companies. We looked at prices by city, driver profile, and credit score, and also took into account the impact of driving violations. This data is for comparison purposes only. Your actual quote may be different.

Frequently asked questions about car insurance costs in California

Is auto insurance expensive in california?

California has the second highest cost of living in the country. As a result, the average cost of auto insurance in California is higher than the national average.

How much is auto insurance per month in California?

The average auto insurance in California is $136.08 per month. However, young and high-risk drivers are likely to receive much higher premiums.

Is Low Cost Auto Insurance Available In California?

If you can’t afford the state’s minimum coverage in California—which averages about $615 annually—you may qualify for California’s low-cost auto insurance program.

Eligibility for the program depends on your family size and income, but if you qualify, you may qualify for a policy with below-average rates. You can visit MyLowCostAuto.com Or call 866-602-8861 to learn more.

This article originally appeared Average California Car Insurance Cost for {% now ‘Y’%} on FinanceBuzz.

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