How to Find Cheap Car Insurance in California: Tips and Insights
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Like most states, California requires all drivers to meet minimum car insurance requirements. Although car insurance is mandatory, that doesn't mean you'll have to pay an arm and a leg for quality coverage. Nonetheless, finding affordable car insurance in California may be challenging, depending on your location and driving record. Here, we break down practical strategies to help you find cheap car insurance in California without sacrificing the coverage you need.
How to Compare Car Insurance Quotes in California
The best way to find affordable rates on California car insurance is to shop and compare quotes from multiple insurance companies. Gathering many California car insurance quotes will give you options when it comes to choosing a provider and building the right coverage plan.
While you can shop for cheap California car insurance by visiting provider websites individually, it's much easier to use comparison tools like EverQuote. EverQuote takes the information you provide about your location and driving record and gives you real quotes in a matter of minutes. Whether you're looking for minimum coverage or higher coverage limits, EverQuote can give you real-time insurance rates to compare against your current policy and determine how you can save money.
The Importance of Bundling Insurance Policies for Savings
One of the best ways to reduce your annual premiums is by bundling different insurance policies into a single plan. To get the best cheap car insurance in California, you may want to bundle with a homeowners' or renters' insurance policy. Many insurance companies offer discounts for bundling policies to incentivize you to choose them.
Keeping a Clean Driving Record to Lower Insurance Rates
The average cost of car insurance in California is near the top of U.S. states for several reasons, but one of the most significant is California's traffic. With so many big cities and major highways, you're more likely to get into an accident or receive a traffic violation. Citations on your driving record will drive insurance premiums up. However, if you keep a clean driving record for several years, you can expect better rates and may even be eligible for a rate decrease on your current policy.
California's Minimum Liability Requirements and Their Impact
California recently raised its minimum liability insurance limits. As of January 1, 2025, the minimum requirements are:
- $30,000 of bodily injury liability for injury or death to one person
- $60,000 of bodily injury liability for injury or death to more than one person
- $15,000 of property damage liability
These minimum insurance requirements are a bit higher than other states, in part because of the higher cost of living in California. Because minimums are higher, even the cheapest car insurance companies will likely have higher average rates in California than in other states.
Urban vs. Rural Rates: How Location Affects Car Insurance Costs
Location plays a significant role in informing insurance rates. That's because more densely populated areas tend to have more drivers on the road and, therefore, more potential for accidents. Even the best drivers can't always predict what other drivers are going to do, so the risks of accidents are higher when there are more cars on the road. That's why car insurance premiums in Los Angeles are 36% higher than the rest of the state, while rural Los Osos has the lowest average premiums.
Understanding Proposition 103 and Its Influence on Car Insurance Rates
In 1988, California passed Proposition 103, also known as the Insurance Rate Reduction and Reform Act. This act aims to reduce insurance rates and protect consumers by requiring insurers to get approval from the California Department of Insurance (CDI) before changing rates.
Proposition 103 applies to car insurance, homeowners insurance, earthquake insurance, business insurance, and life insurance. For car insurance, it requires insurers to base premiums on driving experience and driving record and prevents them from instituting arbitrary or discriminatory rate hikes. It also requires that insurers offer good driver discounts that are at least 20% below the standard insurance rate.
Comparing Coverage Options: Cost vs. Protection
There are several types of car insurance in California available at different price points. Generally, minimum coverage policies would be the California cheap car insurance. Collision coverage protects you and your vehicle if you're in a collision with another car or with a stationary object. Comprehensive coverage protects you and your vehicle against non-collision issues like theft, vandalism, and acts of nature. Full coverage includes both.
Insurance is more expensive with a lower deductible and higher coverage limits. Ultimately, you have to do a cost-benefit analysis to determine how much you could afford to spend without the help of insurance if your car is damaged.
Save on Car Insurance Today: Get Your Quote Now!
Finding cheap car insurance in California doesn't have to be difficult. Despite higher premiums than other states, if you use the right tools, you can find a policy that fits your budget. Use EverQuote's comparison tools to help you find the best coverages for your budget.