The state average premium in California for full-coverage car insurance is $2,065 a year. Although higher than the national average, which is about $1,738, California premiums are not nearly the country’s highest. The average annual cost for the state-required minimum liability policy is $733, which is quite a bit more than the national average cost at $480.
You probably won’t be paying either of these amounts for your policy, since many individual factors drive California auto insurance rates. Having a clean driving record and driving a safe, inexpensive, mid-size car will most likely result in the lower rates.
What Is the Average Premium for Cheap Full Coverage Car Insurance in California?
The average price for full coverage policy in California is $172 per month. It consists of liability insurance, plus comprehensive and collision insurance. If your vehicle is financed, you will be asked by your lender to carry full coverage auto policy. Otherwise, some drivers choose it since it offers much greater financial protection than the minimum coverage, which is basic liability.
How Much is it for Cheap Liability Insurance or the Minimum Required Car Insurance in California?
The average rate for mandatory minimum liability car insurance in California is $61 per month. At first, that sounds like a great deal. However, paying the least amount for the least coverage is a precarious situation for many drivers who don’t have enough cash savings to cover themselves and others if they wind up in an accident.
Because California is considered an at-fault state, your basic liability coverage will go towards paying for the other driver’s injuries, medical bills and damages if you caused the wreck. If someone else caused the crash, their liability (if they have it) will go towards your injuries and damages. Your own minimum liability coverage will never be used to pay for your expenses. That is why some drivers prefer to carry extra insurance in case there is an accident. If you’re considered the at-fault driver and have no proper protection, it could mean spending a lot of money unexpectedly.
Some additional insurance to seriously consider is uninsured motorist coverage and/or underinsured motorist coverage. These optional car insurance packages will help pay for your costs if you are involved in an accident that is caused by a driver who either has no insurance, a hit and run driver or a driver who does not have enough insurance to cover your bills. When the insurance companies have finished paying the amount they are required to based on policy limits, whatever is left over has to come out of somebody’s pockets.
How do Rates Compare across Major Cities in California?
California is the third-largest state, with many diverse and populated metropolitan areas like Los Angeles, San Diego, and Fresno and plenty of rural areas, too. Car insurance premiums will reflect your location. Here are some average monthly insurance cost comparisons of different California locations.
Unless otherwise specified, we use the following methodology to arrive at our average cost: male, age 30, lowest possible legal coverage allowed by state. Your rates will be determined by several factors, including your age, your gender and the amount of coverage you want to purchase.