Car Insurance in San Jose: Rates, Coverage, and Tips to Save

Younis ShuaibUpdated February 19th, 2025

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All Californians must meet state car insurance requirements, but people in different parts of the state may have access to various insurance providers or face different car insurance costs. There are many reasons why California car insurance is so expensive in San Jose, and it’s important to understand why. In this guide, you’ll learn what you need to know about car insurance in San Jose, including what you can do to reduce premiums, avoid penalties for driving uninsured, and get the right coverage for you to meet your savings goals.

Car Insurance Requirements in San Jose, California

San Jose is subject to California car insurance laws. Like most states, California requires all drivers to have a minimum amount of liability insurance.

Overview of California’s Mandatory Minimum Coverage

California’s minimum liability insurance requirements include:

• $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

Note that liability insurance compensates the other person involved in an accident, not you. It protects the public from your mistakes. To protect yourself, you’ll need a more robust personal car insurance policy.

California’s liability minimum coverage limits are relatively low compared to other states, and it also allows individuals to self-insure. In lieu of a motor vehicle liability insurance policy, you may instead:

• Pay a $75,000 cash deposit to the California Department of Motor Vehicles (DMV)
• Get a DMV-issued self-insurance certificate
• Getting a surety bond for $75,000 from a company licensed to operate in California

Penalties for Driving Without Insurance

All drivers are legally required to carry proof of insurance and be prepared to show it when requested by law enforcement, registering a vehicle, or after a collision. Getting caught driving without insurance may lead to a fine of up to $200, vehicle impoundment, or suspension of registration.

Factors Affecting Car Insurance Rates in San Jose

Several factors contribute to San Jose’s high car insurance rates:

• Location: Urban areas almost always have higher insurance costs due to the number of people on the roads. Simply put, when there are more drivers, the likelihood of accidents and traffic incidents is higher, which raises the probability of an insurance company having to pay out a claim. Your ZIP code may be the biggest influencer of your auto insurance rates.
• Driving record: The more accidents and traffic violations you have, the more you’re likely to pay. Keeping a clean driving record is a good way to keep your premiums lower.
• Age: Teen drivers and drivers over the age of 65 typically must pay higher premiums.
• Credit scores: Although high credit scores typically lead to lower car insurance rates, they also often indicate higher income areas. San Jose is a high-income area with a high cost of living, and insurance premiums reflect that fact.
• Car theft rates: Again, like most cities, car theft rates are higher in urban areas than they are in rural or suburban ones, raising the risks to insurers.

How To Find Cheap Car Insurance in San Jose

Despite the high costs, you can take steps to lower your car insurance premiums. Some of the best things to do include:

• Compare rates: Spend some time shopping and comparing average rates across insurance companies. Get several car insurance quotes in San Jose to see which companies can offer the best prices for the best coverages.
• Keep a strong profile: You can’t control premiums in San Jose, but you can control your driving record and your credit score. Staying safe on the road and always paying off debt will give you a stronger driver profile.
• Shop discounts: Many insurance companies offer discounts for safe driving, taking defensive driving classes, keeping low mileage, being a student, and more. When you’re shopping for insurance, ask about discounts and ways to save to see what you might be eligible for.
• Bundle policies: It’s very common to bundle your car insurance with a renters or homeowners insurance policy to save money.

Everybody wants to stay on track with their financial goals. Taking the time to shop, compare, and explore discounts can help you find the best insurance policy for your budget.

Best Car Insurance Providers in San Jose

The best car insurance in San Jose, California, for you may not be the same for someone else. Finding cheap car insurance in San Jose takes a little work. Fortunately, that work is a lot easier with the help of technology. Use EverQuote’s comparison tools to shop and compare rates in real time to find the best coverages for your budget.

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