Cost of car insurance in California varies widely, depending on individual circumstances and the coverage chosen. At MoneyGeek, we have conducted an analysis on some key elements that influence auto insurance rates to give an idea of how your specific situation may impact the costs associated with auto coverage.
Typically, the more coverage you purchase, the higher your insurance premium will be. But keep in mind that not every state requires maximum protection; California’s minimum required liability coverage (of $15,000 per person and $30,000 for accidents plus $5,000 property damage coverage) often falls short in covering actual costs of accidents. To be certain you have adequate protection, it may be worthwhile investing in additional types of protection like collision and comprehensive policies as additional insurance policies could provide extra peace of mind.
Numerous factors can impact the cost of car insurance in California, including your time on the road and how long you have been driving. Drivers with poor credit records tend to pay more as insurers use credit scores as a barometer of reliability as customers. Thankfully, California and several other states have banned credit-based scoring of auto policies.
Other factors that can contribute to California car insurance premiums include your driving record and make and model of vehicle. If you own a sports car or luxury model, rates will likely be higher than for standard sedans or SUVs as insurance companies consider these cars more costly to repair and less safe to operate than their counterparts.
Your age can have a dramatic effect on the cost of car insurance in California. Younger drivers typically pay more as insurers perceive them as less responsible and more likely to cause accidents; adding a teenage driver could increase your rate up to three-and-a-half-fold!
Location can have an enormous effect on car insurance costs in California. More populous cities tend to command higher car insurance premiums due to being perceived by insurers as riskier environments for accidents.
Once again, collision and comprehensive coverage should be considered when insuring your vehicle against damages caused by fire, vandalism and theft. Many online calculators and quote tools offer handy comparison tools between collision and comprehensive policies so it’s easier for you to determine your coverage needs. MoneyGeek also has some helpful resources on common deductible amounts which could impact your rate.