How to Save on California Car Insurance? 7 Tips to Reduce Costs

By Randy Luton | Last Updated: 05/04/2022

Key Insights

  • California is one of the top 10 most expensive car insurance states in our country with an average cost of more than $2000.
  • Huge vandalism risk and the high population of the state are two major reasons for the higher car insurance rate.
  • Drivers can combine different ways to get an affordable rate for a car insurance policy.

The average car insurance rate in California is more than 2.6% of the median household income spent. This is the reason that California is among the top 10 most expensive car insurance states in the USA. Drivers of the state are looking for ways to afford this high cost as per their budget.

To help you get affordable car insurance rates for your car insurance in California, RateForce have created this blog. Read till the end to know the average cost and ways to get affordable car insurance in California.

Average Car Insurance Cost in California

Each company has its own way to calculate the cost of car insurance for any driver. This is the reason we want you to check the average car insurance amount in California from multiple companies. Below is the list of some top car insurance companies along with their average rates:

Insurance CompanyAverage Auto Insurance Cost in California
Mercury$1735
GEICO$1857
Progressive$1949
Chubb$2071
Farmers$2168
Nationwide$2256
Travelers$2362
Kemper$2443
State Farm$2587
Allstate$2691

Why Car Insurance is Expensive in California?

There are a lot of reasons behind the rates of car insurance in any state. Even if a state has lower rates than many other states then also there must be many reasons behind it.

Now that we know we will have to pay a huge amount in California let’s have a look at the reasons behind the higher rates.

1. Huge Population

California has a population of more than 40 million people especially in cities like Los Angeles, San Diego, and San Francisco. More traffic means more drivers on-road means a higher number of accidents. A higher number of accidents means more claims which come from the pocket of insurance companies as a result drivers get higher insurance rates.

2. A Higher Number Of Uninsured Drivers

Almost 17 percent of drivers are uninsured in California hence they become a liability for the insurance companies. If you get into an accident with an uninsured driver then your insurance company will have to pay for the expenses to repair your car. As a result insurance companies provide higher quotes to cover their losses.

3. Higher Theft Or Vandalism Risk

In the year 2019; California has recorded theft of more than 140 thousand vehicles. Theft and vandalism come under the totaled vehicles, where insurance companies have to pay a huge amount according to the actual cash value of the vehicle. As a result; insurance companies try to cover these expenses from the insurance companies.

4. Expensive Auto Repair

The cost to repair cars is higher in California as compared to many other states. The average cost to repair a car in California is more than $400 in 2020 which is 6% higher than the average car repair cost in 2019. Higher auto repair cost means your insurance company will have to pay more claims as a result you will get a higher insurance rate.

5. High Healthcare Costs In The State

Healthcare is expensive in California as compared to most of the other states of the country. This results in the reliability of drivers on the car insurance companies in case of an accident. As a result car insurance companies quote higher rates to the drivers.

How to Save on California Car Insurance?

Now that we know why car insurance is expensive in California let’s have a look at different ways to get affordable rates. You can combine multiple ways to get much lower rates for your car insurance:

  1. Drive Less Than The National Average Rates
    On average the drivers of our country drive around 12,000 to 15,000 miles per year. If you drive less than this then you can inform your insurance company about it and they will provide you with lower insurance rates.
  2. Ask For An Agency To Provide You With Different Rates
    Contact a local agency that can provide you with a list of all the top car insurance companies in California. By comparing quotes from different companies you can understand how much other companies are charging and what they are providing. A reliable agency will provide you with an accurate quote based on your profile and your vehicle.
  3. Improve Your Credit Score
    Drivers with good credit scores are considered more reliable and safer as compared to the drivers with poor credit scores. Because drivers with a poor credit score are more likely to skip payments and file false claims. As a result insurance companies provide higher rates to such drivers.
  4. Bundle Your Multiple Policies
    If you have different policies like home insurance, personal insurance, and renters insurance then you can combine these policies into your one account and get affordable rates. Combining different policies means you will buy all these policies from one company.
  5. Install Smart And Modern Devices To Your Car
    By adding modern devices that increase the safety quotation of your car can improve the chances of reducing your car insurance rates. You can add anti-theft devices and automatic seat belts to get as much as 25% from some of the companies.
  6. Increase Your Deductibles
    Higher deductibles increase your liability hence you will drive safely. According to most car insurance companies; drivers with higher deductibles file fewer claims. As a result, these drivers get lower insurance quotes.
  7. Complete A Driving Improvement Course
    Every state has its own driver improvement course that helps the drivers to work on their skills and judgment. By completing a driving course you will get into the category of safe driver and as a result, you will get a lower insurance rate.

Now It’s Your Turn

Car insurance rate in California is 14% higher than the national average rate; that’s why drivers are looking for cheap insurance. RateForce provide affordable quotes for car insurance in California aggregated from the top auto insurance companies.

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SOURCES

  • Read an article of TheDrive about the average car insurance rate in California on 15th January 2022.
  • Visited www.fhwa.dot.gov to check the average number of miles drivers drive in our country every year on 15th January 2022.
  • Checked an article of Labor Center about the cost of healthcare in California on 15th January 2022.
  • Read an article in the LA Times about the expensive car repair cost in California on 15th January 2022.
  • Referred to Wikipedia to check the number of thefts in California on 15th January 2022.
  • Checked the PPIC article about population of California on 15th January 2022.
  • Read an article of Bankrate about the median income of an average driver and the cost of car insurance in California.

Editorial Guidelines: The above is meant as general information to help you understand the different aspects of auto insurance. This information does not refer to any specific auto insurance policy. Coverages and other features vary between insurers, vary by state, and are not available in all states. References to costs of coverages/repair, average or typical premiums, amounts of losses, deductibles, etc., are indicative and may not apply to your situation. We encourage you to speak to our insurance representative and to read your policy contract to fully understand your coverages.

Randy Luton is the Founder and CEO of RateForce. He is passionate about InsurTech services and has in-depth knowledge about the auto insurance sector of the USA.