California’s car insurance rates are some of the highest in the country, with the average driver spending nearly three percent of their household’s income. The state’s drivers are looking for ways to cut costs without sacrificing coverage, and they’ll find some helpful tips below.
Why is Auto Insurance So Costly in California?
All state’s auto insurance rates are different. If one state has much lower rates than another, there are good reasons for the discrepancy. Here, drivers will learn why they’ll pay more for limited liability insurance in California than anywhere else.
- A rising population. California’s population has risen to more than 40 million people, many of whom live in cities like San Francisco, San Diego, and Los Angeles. As more drivers hit the roads, the risk of accidents increases. When more accidents happen, more claims are made—and insurers must raise rates to cover those payouts.
- More uninsured drivers. Nearly 20% of drivers in California are uninsured, creating a significant level of liability for insurers. If a person is in an accident with an uninsured driver, their insurer will have to pay the entire bill. This unfortunate fact leads many of the state’s insurers to raise rates to cover those losses.
- A higher risk of theft and vandalism. Over 140,000 vehicles were stolen in California in 2019, with thousands more being vandalized. These occurrences often lead to totaled vehicle claims, where insurance companies must pay the vehicle’s cash value.
- Expensive repairs. It costs more to repair a car in California than anywhere else in the country. Higher repair costs lead insurers to pay more claims, which increases rates for everyone.
- The cost of healthcare. The state’s drivers pay more for healthcare than those in other states, leading many to rely on their auto insurance policies to protect them in the case of an injury. This, in turn, has led many insurers to raise rates.
These are just a few reasons why California’s drivers pay more for auto insurance. Contact a local agent to learn how to cut insurance costs without sacrificing coverage.
Saving on California Car Insurance
Now that we’ve discussed the reasons for California’s high auto insurance rates, let’s look at some ways to save.
- Changing driving habits. The average Californian drives 12,000 to 15,000 miles each year. Those who drive less can potentially get lower insurance rates.
- Asking for competitive quotes. Local agencies can provide lists of the state’s top insurers. By comparing rates from different providers, drivers canunderstand what they’re getting for their money.
- Choosing vehicles with advanced safety and security features. By choosing cars with antilock brakes, anti-theft systems, automatic seat belts, and other features, drivers will pay less for auto insurance in California.
- Completing a driver improvement course. Every state has a driver improvement course, and California is no exception. When drivers complete these courses, they get lower insurance rates.
Although California’s car insurance rates are higher than anywhere else in the nation, there are a few ways to save. Contact a local auto insurance agent who can help you find all the discounts for which you are eligible.