Car Insurance

California Car Insurance Is Among the Costliest in the Nation

If you’re a driver in California, you’re probably well aware that car insurance rates here are among the highest in the nation.

In fact, from 2015 to 2021, the average cost of car insurance for a driver in California was about $120 a month, or close to $1,500 per year.

But how have things changed since the pandemic? Are Los Angeles car insurance rates still high? How about other cities around the Golden State? Let’s take a look.

Which California city has the most expensive car insurance?

There are a lot of reasons why California has a higher average car insurance rate than other states.

For starters, the state has a lot of drivers (over 30 million in 2019), which means more accidents and claims.

If you are thinking of moving to California, it is home to many densely populated areas, and Los Angeles car insurance rates are among the most expensive in the country.

Here are some of the most expensive California cities when it comes to auto insurance rates.

  1. Beverly Hills — According to a recent ValuePenguin evaluation, Beverly hills tops the list for expensive car insurance. With $3,474 per year, 62% above the state average.
  2. Los Angeles: Tarzana & Hollywood — In the study, L.A. was broken into its smaller suburban areas. However, Tarzana and Hollywood tied at 56% above the state average. Both annual average rates were in the area of $3,345.
  3. Los Angeles: Van Nuys, North Hollywood, Valley Village, & Encino — More Los Angeles suburbs top the list. Ranging between Van Nuys’ high of $3,262 and Encino’s $3,202 rate, Los Angeles certainly stands out among the competition.
  4. Glendale — The next highest city (outside of L.A.) is Glendale. Residents here spend around $3,176 on auto insurance (that’s 48% above average).

Why are Los Angeles insurance rates so expensive?

Los Angeles drivers certainly have the most expensive car insurance rates in California.

But why exactly are they so high?

  1. Los Angeles is a very densely populated city, which means there are more cars on the road and more opportunities for accidents.
  2. Los Angeles is home to a lot of high-end cars, which are more expensive to insure.
  3. Los Angeles has a higher than average rate of car theft.

So, if you’re looking for cheap car insurance in California, Los Angeles is probably not the best place to start your search.

Meanwhile, Etna, Weed, and Mount Shasta are cities at the bottom of the list, and all have average car insurance rates that are below $1,700 annually.

So, if you’re looking for cheaper rates, you might want to start your search in one of those cities.

How to Compare Rates and Find the Best Deal for You

Now that you know a little bit more about the most and least expensive cities for car insurance in California, it’s time to start shopping around for the best deal.

The best way to find cheap car insurance is to compare rates from multiple companies.

Doing this gives you a sense of what each company charges and helps you find the one that offers the best deal for your needs.

To get started, simply enter your zip code into an online tool and view a list of companies with rates in your area.

Then, you can read reviews, compare features, and start shopping for the best car insurance in California.

How has the pandemic affected car insurance rates?

The pandemic has had a major impact on the economy and its workers, and that includes the car insurance industry. Many insurers have been forced to raise rates due to increased claims.

The situation will likely continue for some time, as the pandemic affects both the number of accidents and the cost of repairs.

In addition, many insurers are reevaluating their policies and coverage levels in light of the new reality.

As a result, it’s important for consumers to be aware of the potential impact on their rates.

It’s also important to shop around and compare rates, as different insurers will be impacted in different ways.

Tips for Reducing your Premiums and Saving Money on Car Insurance

You can do a few things to reduce your car insurance rates, even if you live in an expensive city like Los Angeles.

  1. Make sure you’re only buying the coverage you need. If you have an older car, for example, you might not need comprehensive or collision coverage.
  2. Consider raising your deductible. This will lower your premiums, but make sure you have enough money to cover the deductible if you have an accident.
  3. Be sure to shop around and compare rates from multiple insurers. As we mentioned before, the pandemic has caused rates to increase, so it’s important to find the company that offers the best deal for your needs.

By following these tips, you can be sure you’re getting the best possible rate on your car insurance in California.

The Consequences of Driving Without Insurance in California

Driving without insurance in California is a risky proposition. You are required by law to carry:

  • Each individual must have $15,000 of bodily injury liability coverage
  • Each Accident must be covered by $30,000 of bodily injury liability coverage
  • Property damage must be covered by $5,000 of liability coverage

These are also known as 15/30/5 limits.

If you’re caught, you’ll be subject to a fine of $100 to $250 for the first offense and $200 to $500 for subsequent offenses. They could also opt to impound your vehicle.

How to Afford Car Insurance in California

With the previously mentioned penalties in mind, you’ll find the best way to save money on car insurance is to do your research while shopping around and not being caught driving without it. We cannot deny the numerous benefits of having car insurance.

Be sure to shop around and compare rates from multiple companies to find the best deal for your needs. And, if you have any questions, be sure to consult an insurance agent or broker.

By following these tips, you can be sure you’re getting the best possible rate on your car insurance in California.

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