How Much is the Cost of Car Insurance in California?

Wondering How Much is the Cost of Car Insurance in California? Learn about average rates by age, coverage types, and tips to lower your premium. Updated for 2025.

In California, the typical cost of car insurance ranges from about $600 to $700 for little coverage to about $2,000 to $2,500 for comprehensive coverage. However, several factors, including the insurance company, the driver’s age, driving history, discounts, vehicle, and policy selections, might affect these rates.

So let’s examine the actual cost of auto insurance in California in more detail.

What is the Average Cost of Basic Car Insurance in California?

Car insurance is obligatory in California, although there is an alternative option of placing a $35,000 bond or deposit with the DMV. For insured drivers, the state mandates a minimum amount of bodily injury liability coverage and property damage liability coverage. The former covers the expenses related to bodily injuries suffered by other drivers or pedestrians, while the latter takes care of property damages, such as to another vehicle.
• $15,000 for bodily injury per person
• $30,000 for bodily injury per accident
• $5,000 for property damage per accident

The average annual cost for basic auto insurance in California varies based on age:
• 18 years old = $2,205
• 20 years old = $1,391
• 25 years old = $900
• 35 years old = $738
• 45 years old = $717
• 55 years old = $702
• 65 years old = $732

However, it’s important to note that minimum insurance does not cover damage to the driver’s vehicle, theft, vandalism, weather damage, or collisions with trees and animals. While it suffices to cover property and bodily injury damages following an accident, drivers with higher net worth are advised to opt for higher liability limits.

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Full Coverage Car Insurance Costs in California

Full coverage car insurance, which includes collision and comprehensive coverage, poses a higher risk for insurance companies and comes with a more substantial cost for consumers. The following are examples of full-coverage car

insurance quotes for different age groups:
• Age 18 = $6,502
• Age 20 = $4,236
• Age 25 = $2,884
• Age 30 = $2,468
• Age 40 = $2,291
• Age 50 = $2,197
• Age 60 = $2,155
• Age 70 = $2,338

Sixteen-year-olds are considered high-risk drivers and may expect to pay even more than 18-year-olds. However, if they are added to a parent’s policy and utilize discounts, such as a good student discount, the cost can be similar, ranging from $6,000 to $7,000.

Factors Affecting Car Insurance Rates in California

Car insurance rates in California are influenced by several key factors:
1. Coverage Options: The type of coverage chosen significantly impacts insurance costs. Full coverage, including comprehensive and collision insurance, provides broader protection, while basic liability coverage is more affordable.

• Liability-only is cheapest

• Full coverage costs more but offers complete protection

2. Age: Age plays a crucial role in car insurance rates. Young drivers, statistically more prone to serious accidents, usually face higher insurance premiums. As drivers age, insurance tends to become more affordable until around 70 years old, after which the risk increases, leading to higher premiums.

• Young drivers = highest premiums

• Rates drop in your 30s and 40s

• Rates rise again after age 70

3. Driving Record: A history of DUIs, speeding tickets, or at-fault accidents raises the risk level, leading to higher car insurance premiums.

Tickets, DUIs, and at-fault accidents increase premiums significantly

4. The Vehicle: Car insurance companies assess both the vehicle and the driver. For comprehensive and collision coverage, they consider the cost of repairs and replacements for the vehicle, as well as its likelihood of being stolen. For liability insurance, they evaluate the potential damage the vehicle can cause to others.

• Expensive or high-performance cars = higher premiums

• Cars with strong safety ratings = lower rates

5. Motorcycles vs. Cars

Surprisingly, motorcycles are often cheaper to insure for liability — they typically cause less third-party damage in accidents.

Interestingly, motorcycles are often cheaper to insure than cars, despite the perception that they pose higher risks due to potential destruction and injuries. This is because liability insurance primarily focuses on the damage caused to others, and motorcycles typically cause less damage than cars in accidents.

Restrictions on Car Insurance Pricing in California

California law prohibits insurance companies from using these factors to determine your premium:

• Gender

• Credit score

• Education level

• Occupation

This ensures fairer pricing based mostly on driving behavior and vehicle risk.

Tips for Lowering Car Insurance Costs in California

To make car insurance more affordable, consider these strategies:
1. Explore the CLCA program: The California Low-Cost Auto Insurance Program offers low-cost liability policies to eligible drivers.

2. Shop around: Comparing quotes from different insurers can help find the best price for the coverage needed.

3. Adjust coverage options: Evaluate whether comprehensive or collision insurance is necessary based on the vehicle’s value.

4. Lower the deductible: Opting for a higher deductible can lower premiums, but keep in mind it will increase out-of-pocket costs in case of an accident.

5. Check for discounts: A clean driving record, auto-pay, prepayment, bundling policies, driving courses, and good student discounts can all result in potential savings.

6. Bundle insurance – Combine auto with home or renters insurance for discounts.

Average Monthly Car Insurance Cost in California

While annual costs give a big-picture view, many drivers budget monthly.

• Basic Coverage (monthly): Around $75–$90

• Full Coverage (monthly): Around $180–$250

These numbers vary depending on driving history, vehicle, and discounts.

Car Insurance Cost for a 25-Year-Old in California

• Basic liability coverage: ≈ $900/year

• Full coverage: ≈ $3,000/year

A 30-year-old driver may pay slightly less:

• Basic coverage: ≈ $800/year

• Full coverage: ≈ $2,500/year

Conclusion:

So, how much is the cost of car insurance in California? It depends on your age, driving history, vehicle, and coverage level. The key to saving is understanding these variables and shopping smart.

Before purchasing, always:

• Compare quotes

• Understand your coverage

• Check for eligibility in California’s low-cost insurance program (CLCA)

FAQ:

How much is car insurance in california for a 25-year old?

For a 25-year-old in California, the average monthly car insurance cost is typically around $120 to $180.

The exact rate depends on:

• Driving history

• Type of car

• Location (e.g., Los Angeles vs. Sacramento)

• Coverage level (minimum vs. full coverage)

Good driving habits and bundling policies can help lower the cost.

Why is CA car insurance so expensive?
Car insurance in California is costly due to high traffic, accident rates, repair costs, and strict state regulations.

How much is a car per month in California?
A typical car payment in California can range from $350 to $600 per month, based on the vehicle price, loan terms, and credit score.

Why is CA car insurance so expensive?
Car insurance in California is costly due to high traffic, accident rates, repair costs, and strict state regulations.