How to save money on car insurance in California

Written by Katie Dee

Published on 2023-10-16

According to new data from Rate Retriever’s quarterly insurance rates report, car insurance in California costs drivers around $1,817 annually. While this is slightly cheaper than the national average for car insurance, there are ways that you could save even more on your premium.

Car insurance prices across all states have risen faster than anything else in the economy in 2023. Your specific rate for car insurance in California will depend on several factors, including the make, model, and year of your car as well as personal information like your age and driving history.

Is your state expensive for car insurance?

Top 5 ways to save on your car insurance

Why are car insurance rates rising faster than the rate of inflation?

What impacts car insurance rates in California?

The price you pay for California car insurance varies depending on multiple factors. For instance, some zip codes warrant higher rates than others. Rate Retriever’s report tells us that the most expensive zip code for car insurance in California is currently 90010, which is located in Los Angeles.

Car insurance in this area could cost drivers around $2,938 annually – 62% more than the average in California. Typically, densely populated areas as well as big cities warrant higher car insurance premiums because there is a higher chance of an accident or theft occurring in these areas than there is in a more rural part of the state.

On the other end of the spectrum, 96094 is currently the cheapest zip code for car insurance in California. This is a zip code in Weed, California and residents pay an average of $1,292 per year for their car insurance.

In addition to your zip code, your coverage level, marital status, and the number of drivers on your policy will also affect the amount you pay for car insurance in California.

California is also one of three states that does not allow insurance companies to take credit score into consideration when assigning car insurance rates, so whether you have excellent credit or you’re trying to improve your score, your rate will not be impacted.

How can I save money on California car insurance?

One way to be sure you are not overpaying for car insurance in California is to make sure you have the right coverage level for your needs. California drivers with a minimum coverage policy pay an average of 65% less than those who opt for a premium full coverage policy while those with standard coverage pay around 4% less than those with premium coverage policies.

If you are married, another way you could save on your premium is to combine your policy with your spouse. On average, married California drivers who have a joint policy and shared vehicle save 54% on their car insurance premiums while married drivers with a joint policy and two vehicles save around 24% per year.

If you are a California driver looking to insure a teenager, you also have opportunities for savings. A parent adding a teenager to their policy can save around 42% on their car insurance premium if the parent and teen are sharing one vehicle.

Even if you and your teenager have two separate cars, you could still save an average of 22% per year on your car insurance in California by bundling your policies instead of purchasing them separately.

Another one of the simplest ways to save money on your car insurance is to compare rates at several different companies in your area. Since there are so many factors to consider, it is important to shop around and keep an eye out for any discounts you might be missing out on.

Rate Retriever has a super simple quiz that can help you get started on your search by showing you personalized rates at all of the car insurance companies in your area so you can choose the best option.

Frequently asked

How does the insurance company determine my rate?

Car insurance companies determine how much they charge you based on your driver profile. Factors that can impact your rates include:

Demographics – your age, home ownership, credit score, and more
Your driving history – how long you’ve been driving, traffic violations, and more
Your car – make, model, and year
Where you live – state and zip code
How much coverage you want

How do I switch my car insurance?

Switching your car insurance is easy, even if you are in the middle of your current policy.

Here are some helpful tips to consider to switch your car insurance:

Decide what coverage you want with your next policy
Check if your current provider charges cancellation penalties or fees
Compare prices from at least 3-5 insurance companies (Rate Retriever makes this easy, giving you personalized rates from the top companies near you)
Get a final quote from at least one of your choices
Cancel your current policy once your new one begins

How much car insurance do I need?

The answer to this question depends on where you live and what you would like to cover.

Each state has its own minimum requirements on the type and amount of insurance needed. When you’re trying to determine what and how much car insurance you need, you can start by reviewing your state’s requirements.

Find out what’s required in your state

Once you review your state’s minimum requirements, you may find that you want additional coverage. For example, sometimes owners of new cars want comprehensive coverage to insure their car from natural disasters and vandalism, even though comprehensive coverage isn’t required by their state. To figure out what insurance you want, you can review the different types of insurance to decide what makes the most sense for your situation.

Learn about the different types of car insurance

How is Rate Retriever different than other insurance websites?

The biggest difference between Rate Retriever and other comparison sites is that we are a free and impartial research tool NOT an insurance marketplace. This means you can’t purchase a policy directly through RateRetriever.com, but you can use our tool to independently research your options and seamlessly connect with the provider you choose.

Unlike other insurance comparison sites, we:

Use third-party data to give you more accurate rate estimates instead of inaccurate, suspiciously low quotes to get you in the door
Do not limit your list of results to paid advertisers
Do not collect your email or phone number before we let you see your results
Give you results after just five questions (however, your results will be more accurate if you complete your profile)

We like to think that Rate Retriever is your insurance companion, not just another insurance comparison site. Our values guide everything we do, which is why we strive to offer transparent, trustworthy insurance tools.

How can I get cheaper car insurance?

There are many ways you can try to get cheaper car insurance. The first is simply to get quotes from multiple providers. This will help you determine if you’re currently receiving the cheapest rates based on your needs and driver profile. Rate Retriever makes the comparison process easy.

Sometimes, the reason your car insurance is so expensive is due to your driver profile. For example, drivers under 20 years old usually pay more for insurance than more experienced drivers, and drivers with a recent at-fault accident or traffic violation typically pay more.

There are ways to lower the cost of your insurance such as taking a defensive driving course. Check with your provider to see if there are any discounts you qualify for or can reasonably earn.

How does Rate Retriever make money?

Rate Retriever works with national and local insurance providers to provide our users with a seamless insurance shopping experience. We may earn a commission from our insurance provider partners when you click on a link, call, or purchase a policy from one of the providers listed on our site. That said, we’re committed to providing you with accurate, bias-free information, and we do not allow our partnerships to limit the results or influence the information we share with you.

We do not sell your personal information, charge you for using our tools, or sell you insurance policies. Additionally, should you choose to purchase a policy from one of our partners, the price you pay will not be adversely affected.

Read our full earnings disclosure