California is one of the most desirable places to live, but it’s also one of the most expensive. If you buy a car in California, be prepared to pay a large sum for your car insurance.
The average cost of car insurance in California is $733 per year for minimum insurance coverage and $2065 per year for full coverage. Finding affordable car insurance in the state of California is not impossible but can be very difficult.
Car insurance in California is expensive, and residents who own a vehicle know it. Maybe you’re a safe driver. You have very few accidents-maybe none at all-and yet the annual auto insurance premiums have gone up. Don’t worry you are not alone. Car insurance premiums for California drivers have risen steadily every year since 2011. Currently, California’s average driver pays $1962 a year in auto insurance. That may sound like a lot, but California drivers aren’t the only ones to see improvements in their monthly premiums.
Premiums can be higher or lower based on the type of car you drive, the address, where you go to work, and how many miles you drive in a year. On average, California drivers pay about $2000 a year for auto insurance. For this reason, California is the 7th most expensive state to insure a car.
The most common reasons for drivers paying expensive rates in California are as follows:
Higher population ratio: California has a population of 39.54 million. Out of this number of people, more than 26 million are drivers and have automobile insurance. When there are more residents, there are more vehicles that need to be part of the route. If there are more cars on the roads, the chances for an accident to happen are increased. The same thing is happening in urban areas. More than 4 million people live alone in Los Angeles. This high number of residents leads to a rise in the premiums of those residing in that area. Often, in areas where many vehicles are concentrated in a relatively small area, the chances of burglary, vandalism, hit and run accidents are also increased.
Minimal use of public transport: Many drivers are licensed in California. Most California people stop using public transport. In California, only 5.3 percent of the population uses public transport.
The higher number of uninsured drivers: Since California’s insurance rates are some of the highest in the country, so is the number of people driving without valid car insurance. An estimated 15.2 percent of all California drivers were uninsured.
The high cost of living: In California, employees pay a minimum of $11 per hour. This might sound generous, but you need to remember the cost of living in California. The average rent for a California studio apartment was around $1690 per month. The rate is more than $600 more than the national average. If you need more space to live, the cost of renting a three-bedroom apartment is around $2650 per month on average. It’s no wonder that most California drivers buy just the bare minimum for state auto insurance.
Expensive to fix modern cars: New technology continues to find its way into our vehicles, which can raise the total cost of repairs. Backup sensors, rearview cameras, and similar devices are becoming more popular and inexpensive to repair or replace.
Natural disasters: You can’t monitor the weather, nor can insurers. Weather disasters such as floods, hurricanes, hail storms, and tornadoes cause significant property damage every year, including car damage. Since such harm is protected by comprehensive auto insurance, insurers also pay the bill when the weather is more severe.
While these are the most potent factors that have led to higher rates across the state, it isn’t easy to point to any single factor as the cause. The bottom line is that premiums are rising because insurance firms are losing money.
How to get affordable car insurance?
Although state-wide car insurance rises are hard to avoid, there are a few measures any driver can take to help reduce the total cost.
Check discounts with your provider: When you enter your details to get free car insurance quotes, you will get personalized, affordable car insurance rates. Many auto insurance firms offer a range of incentives and ways to save money. Discounts can include multi-car discounts, senior discounts, and discounts on being a responsible driver.
Focus on safe driving: Technology plays a large part in our lives, but it can become a dangerous distraction-especially on the road. Be sure to keep your phone away while you’re driving, along with avoiding prevalent distractions to reduce your risk of an accident.
If you are a responsible driver and have many coupons applied, you may already be having the best insurance price for your current coverage choices. Premium increases allow insurance providers to continue to do what they do best-provide coverage to help protect drivers and their families on the road and at home.
Affordable car insurance in California
In California, drivers are expected to have a minimum amount of coverage. If you are a driver in California, here is the minimum amount of coverage that you are legally allowed to have:
- $15000 coverage of bodily injury liability per person
- $30000 coverage of personal harm compensation after an accident
- $5000 property loss insurance compensation for an accident
If you want to purchase the minimum amount of coverage in California, you will be charged at the lowest rate. However, the choice of minimum coverage is not always the best one. Car accidents are costly. If you cause an accident and the cost of car accidents and medical bills are more significant than the coverage limits, you will face out-of-pocket expenses.
How to get affordable car insurance in California
If you’re on a budget, there are several ways to get affordable car insurance in California.
Improve your credit score: Credit score is one of the factors that affect your insurance premium. Since insurance companies see low credit as an indicator that a driver can have many future claims, improve your credit score, you can get a cheaper premium.
Choose a higher deductible: the deductible is the sum of money you have to pay for a loss before the insurance provider begins to pay for the losses. Choosing a higher deductible means paying a lower monthly fee. However, it is essential to make sure that you can afford to pay a higher deductible before changing your policy.
Take advantage of discounts: Most insurance providers offer discounts that can help drivers lower their premiums. Each company provides various discounts, but some popular ones pay your premium in full, bundle your policies, and insure multiple cars.
Get several free car insurance quotes: If you get several free car insurance quotes, it will help you pay the lowest cost. It may be a good idea to search around and get free car insurance quotes from a few providers. If you find a cheaper cost, you might even get a discount when moving to a new business.
Talking to an insurance agent or licensed insurance specialist about your insurance needs will help you decide how much coverage you need to buy.