California Auto Insurance

The state's auto insurance regulations are pretty simple, making premiums fairly inexpensive. But that doesn't mean that all policies are created equal. In fact, if you shop around, you may be able to save $200-300 off your annual rates.


This page:

  • Explains the state's insurance regulations and requirements

  • Describes how California auto insurance rates are decided

  • Shows you how you can save money by comparing multiple quotes

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An overview of the state's insurance regulations

California is a tort state, which means that if you are a resident of the state, you're financially responsible for the damage and injury you cause in an auto accident.

To drive a vehicle, you're required to show proof of your financial responsibility. You can prove this responsibility with a bond or cash deposit of $35,000 with the DMV, or by purchasing a minimum amount of liability coverage.

Most drivers wisely opt to buy the and insurance policy, instead of risking their own assets.

California's liability minimums are 15/30/5. (That's $15,000 per person for injuries you cause to the other party, up to $30,000 for all, and $5,000 for damage you cause to the other party's property.)

These are very low minimums, and you should consider higher levels of coverage, particularly if you have major assets or property to protect.

The state's auto insurance companies will also offer optional coverages such as medical payments, collision, comprehensive, and uninsured and underinsured motorists bodily injury coverage.

How your insurance rates are set

For better or for worse, the price of California auto insurance is decided by the behavior of the state's drivers as a whole. The state's auto insurance companies take the cost of insuring California drivers (this includes settlements and legal fees) and divide it up between everyone.

But these costs aren't spread around evenly (naturally). Instead, the percentage you pay is decided by things like your driving record, your age, where you live, and the kind of car you drive.

Of course, not all insurance companies compute their figures in the same manner. This means that they all charge different rates on the same driver.

What this means for you, is that you should shop around, and compare the different rates (and they'll be very different!) for the best deal. It's the fastest easiest way to save on your policy.

Where you can get California auto insurance quotes

The following web sites will help you find California car insurance quotes: (these links will open in a new window)


  • ComparisonMarket is the best online insurance shopping service, and it is the site to visit first when you are looking to save money on top-rated coverage.

Click here for your quote.

Others:

• Esurance - a national provider of coverage to all drivers. Big savings if you Quote/Buy/Print online!

  • 21st Century a great California insurer for good drivers.

  • Netquote is very useful to those who would like to speak with a local agent about their quote and policy.

  • Geico - Great for those who can't find other insurance. Be sure to complete the entire quote form!

  • Get a quote using your ZIP code to find local and national insurers who offer discounts in your part of the state:

More CA auto insurance help

If you want more help designing your insurance policy, our guide to the various car insurance options should be of help. It contains loads of money-saving tips.

To find out more about CA auto insurance laws and regulations, visit the official website of the California Department of Insurance.

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