Average Cost of Car Insurance

Average Car Insurance Cost

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Average Cost of Car Insurance in California – Tips for Lower Prices

Auto insurance is a required expense to be a driver in nearly every state of the country. Each state has its own legal, minimum requirements, and there are a number of factors that can change the cost of insuring your vehicle in each state. Cost may vary by the city that you live in as well, so it is important that you understand and consider every factor that can influence cost.

How the Average Cost of Car Insurance in California Compares with the Nation

Nationwide, the average car insurance coverage costs just over $1,500 per year. California’s average insurance rate is slightly lower than the average at just over $1,200. However, that is just the averaged out number, not the actual cost for your location. In California, insurance rates can vary by different cities and locations. For example, the average, yearly cost of insurance varies even in the same part of the state:

  • In San Diego: just over $1,600
  • Los Angeles: just over $1,300
  • Anaheim: just under $1,400
  • Huntington Beach: just over $1,400

It might seem strange to see that Los Angeles, home of so many movie and television studios, actually had a lower insurance cost than other cities.

Saving on the Average Cost of Insurance by Comparing Actual Need vs. Coverage

To save some money, it might be possible to eliminate a few of the added or optional expenses. But, to make sure that you are properly covered, talk to your agent about legal requirements before making any changes. Ask about:

  • How much coverage is legally required in your personal situation. For instance, if you do not own your car outright, you may have to have more coverage to satisfy the requirements of the loan that you have.
  • Dropping any driver who no longer carries a license or is no longer residing in your home.
  • Safety equipment and upgrades that could give you discounts.
  • Lowering your coverage amount on a car that is older or of less value.

It is also important to know if you have any risk factors that could increase your car insurance cost. For instance, driving one of the most often stolen car brands or living in a high crime area.

Reasons that the Average Cost of Insurance in California May Be High

All areas have certain factors that can increase the cost of insurance substantially. In California, there are a number of things that can make the cost of coverage high:

  • California has more recorded auto thefts than any other state.
  • Eight of the top ten cities for highest recorded auto thefts are in California.
  • California has a higher than average number of losses from natural disasters including earthquakes and wildfires.

Nationwide, auto theft accounts for more than five billion dollars in losses every year with most of those vehicles never recovered and the crime never solved.