Finding cheap car insurance in California can be challenging due to the state's high cost of living, heavy traffic, and large population of drivers. California consistently ranks among the most expensive states for auto insurance. However, the Golden State also offers unique protections for consumers, including a ban on using credit scores to set rates, which can benefit drivers with lower credit elsewhere.
California's unique insurance regulations, including Proposition 103 which requires prior approval of rate increases, create a distinctive market. Understanding how California car insurance works helps you navigate the market and find competitive rates despite the state's higher average costs.
California Car Insurance Requirements
California requires minimum liability coverage of 15/30/5, meaning $15,000 for bodily injury per person, $30,000 for bodily injury per accident, and $5,000 for property damage. These are among the lowest minimums in the nation, making it possible to find cheap car insurance in California that meets legal requirements. However, these minimums are often inadequate for serious accidents, and many drivers choose higher limits.
California also offers a Low Cost Automobile Insurance Program (CLCA) for income-eligible drivers who meet certain criteria. This state-sponsored program provides an option for drivers seeking affordable California auto insurance who might otherwise struggle to find coverage.
What Affects California Car Insurance Rates
Your location within California is the biggest factor affecting your car insurance rates. Los Angeles, San Francisco, and San Diego have some of the highest rates due to traffic density, accident frequency, and auto theft rates. Rural areas in Northern California and the Central Valley typically offer lower premiums.
Uniquely, California prohibits insurers from using credit scores to set rates. This means your California car insurance premium is based primarily on your driving record, years of experience, and annual mileage rather than your credit history. This can benefit drivers with poor credit who would pay more in other states.
California's high vehicle theft rates, particularly in urban areas, affect comprehensive coverage costs. When shopping for cheap car insurance in California, anti-theft devices and secure parking can help qualify you for discounts.
How to Save on California Auto Insurance
Shopping around is crucial for finding cheap car insurance in California. The state's large market includes dozens of carriers with widely varying rates. Get quotes from major national insurers, California-focused companies, and regional carriers to find the best deal.
Take advantage of California's Good Driver Discount, which insurers must offer to drivers who have had no at-fault accidents and no more than one point on their record in the past three years. This legally mandated discount can save you 20% or more on your California auto insurance.
Consider usage-based or pay-per-mile insurance for additional savings on affordable car insurance in California. If you don't drive frequently or work from home, these programs can significantly reduce your costs based on actual miles driven.