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What Is The Average Cost of Car Insurance in California?

As one of the states with the most options for car insurance providers (more than fifty!), California does not play games when it comes to driving and staying insured. According to ValuePenguin.com, the statewide average premium for 2018 is $1,962

The Cost Breakdown: Location, Location, Location!

In California, it is actually illegal for car insurance providers to take into account your credit history when determining your rate. Instead, your insurance rate is primarily decided by your age, driving record, and how many miles you drive – thus your location.

According to a 2015 NerdWallet study, Palmdale, Baldwin Park, Bellflower and Downey were among the worst cities for driving – with the longest commute times and highest insurance premiums. Of the 20 most expensive cities for car insurance in California, 17 were listed in Los Angeles Count. In NerdWallet’s study, Glendale came in at the top as the most expensive city, while L.A. ranked at number 2.  Overall, WHERE you live in California can be one of the biggest determinants for the price of your premium; some cities will have you paying lower than the national average, while others will be exorbitantly higher. 

With such a vast amount of options for car insurance companies, it’s important to compare coverages and rates before deciding which one you want to go with. Check out this helpful guide on everything you need to know about vehicle insurance in California, including the types of discounts offered, and ideal insurance providers based on your driving type.

California palms

Minimum Insurance Requirements

If you’re driving in California, you are legally required to have insurance. California requires the following minimum amounts for liability insurance:

  • $15,000 for injury/death to one person
  • $30,000 for injury/death to more than one person
  • $5,000 for damage to property 

Here is the company annual average rate for the state minimum, according to ValuePenguin.com:

  • GEICO: $253
  • Progressive: $441
  • Allstate: $496
  • Nationwide: $575
  • State Farm: $576
  • Farmers: $604

For more information on the top insurance providers in California, check out our post comparing insurance providers in the Golden State. Finally, if you’re trying to save money on your car insurance, here are some money hacks that can save you $600 on car insurance – especially if you’re a teen driver or have a new teen driver in the house.

Images sourced in order of appearance: Artem Bali, Vivana Rishe.

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