Does Car Insurance Cost More in California?

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Why Car Insurance Cost is Higher in California in San Diego, CA

Much like housing prices, the cost of car insurance in California is often significantly higher than in other states. Surprisingly, though, California isn’t ranked among the five most expensive states for automobile coverage in the nation. Instead, as of 2019, it’s ranked at number six. Best of all, even when drivers find themselves facing steep premiums, there are always ways to cut these costs without having to sacrifice reliable protection and needs-specific features.

States with the Most Costly Car Insurance

Michigan is currently ranked as the most expensive state for auto coverage in the country. However, this has less to do with the driving skills and habits of Michigan motorists and more to do with the weather in this region. The cold, snowy winters in Michigan create icy road conditions and other hazards that make higher premiums necessary. Moreover, Michigan is the only state that provides unlimited payments for personal injury protection, which also accounts for the significantly higher costs of car coverage. In a sense, automobile insurance in Michigan functions much like health insurance in other areas.

The average annual premiums for coverage in Michigan are about $2,500. Louisiana follows at a close second with annual premiums averaging close to $2,400. California residents can expect to pay just under $2,000 per year for comprehensive auto insurance. San Diego drivers enjoy even lower rates than residents in other parts of the state.

Easy Ways to Save on Car Insurance in California

A number of discounts can be easily accessed by motorists in all states, including California. For instance, because your credit history will be reviewed when determining your car insurance rates, working to improve your credit score could eventually qualify you for significantly lower premiums. You can also opt to pay more of your annual premiums in advance rather than choosing to pay monthly. Paying for 6 or 12 months’ worth of car insurance at the start of your policy can shave several hundred dollars off the yearly cost.

You also have the ability to take on a higher deductible or choose car insurance that only covers liability. When choosing a higher deductible to cut your spending, make sure you have adequate money in savings to cover this out-of-pocket expense. Liability-only insurance is generally best suited for drivers with relatively low-value vehicles who don’t want to spend more on coverage each year than the actual worth of their vehicles.

There are also multicar discounts, consolidation bonuses, and discounts for belonging to specific member organizations. College students can qualify for savings by simply maintaining impressive grades. When signing up for a new policy, make sure your rates account for all of your car’s safety features and that you’re getting credit for any other savings you might be qualified to receive.

If you’re searching for affordable, reliable auto insurance, reach out to the friendly agents at Altra Insurance Services. In addition to auto coverage, we offer a variety of insurance policies, including motorcycle, homeowners, and renters insurance. For a free quote, call one of our experienced agents today at 619-474-6666.

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