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California car insurance

Understanding California car insurance policies will help you make a great buy. Unlike many other states in the USA, California follows a unique set of rules and regulations. The regulations are fine-tuned to meet the states driving conditions and needs. Of course, the drivers play a very important role in the cheap car insurance California policies. They have the power to increase or decrease their premiums. With this being said, here is a quick review on how auto insurance California works.

California Car Insurance Rates by ZIP Code & City
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Car Insurance Rates in California

In average, car insurance California can cost you 1518 USD. The state doesn’t consider your credit history. That means car insurance service providers would not look into your previous bank records and increase the premiums. However, where you live plays a critical role in the final figure (once again, the checks are not as serious as in the other states). This leaves drivers at an advantage. When car insurance companies evaluate your profile, they focus on the following factors:

  • Your age
  • Your driving history
  • How often you would hit the road

At all times, the insurance company would judge the risk of giving you a policy. And, the final quote would differ from one company to another. That is why you should request a quote from several car insurance companies California. Ample homework will help you grab the market’s best and cheapest deal.

Minimum requirements in California

In California, Los Angeles has the highest car insurance rates. It costs around 3450 USD in the city of Los Angeles. This is two times the state’s average and three times the lowest cost in California. To understand the cost of insurance in your city, you must search the Internet or request for a quote from local insurance companies. Mention your ZIP, and you will receive the figures.

California’a minimum bodily injury liability ranges between 15,000 and 25,000 USD. The entire state operates at a minimum property damage liability of 5,000 USD. In the State of California, you must carry insurance in the following ratio: 15-30-5. This would be your car’s minimum insurance coverage. With the cheapest policy, you will be able to take care of the other driver’s damages and injuries. The policy would not cover your damages and injuries. That is why you should opt for a better plan. Always remember, a minor accident is sufficient to exhaust your insurance policy. If the damages and injuries are more, you must shell money from your pocket. Here is a simple example to explain the situation:

You have met with an accident and the cost to fix all damages to your vehicle is 50,000 USD. Meanwhile, there are bodily injuries too. The cost to resolve medical bills is 30,000. Unfortunately, your coverage handles only 50,000 USD. This is when you must give 30,000 USD from your pocket. Doesn’t it sound bad? To avoid such problems, you must buy a suitable auto insurance California plan.

California has the country’s lowest property damage liability. You need only a coverage of 5000 USD. In case you meet up with a big accident, you are more likely to pay out-of-pocket.

Boosting your car insurance California is not going to cost a lot! On an average, you must pay around 1037 USD (extra) every year. This gives an average of 101 USD a month with deductibles worth 500 USD. However, you are bound to receive full coverage.

1. Liability

With more assets and more money, you are more likely to be sued. After a car accident, the service providers may claim your properties. Doesn’t this sound scary? If you are determined to pay minimal insurance, you should go for a higher liability. Here are few situations, where high liability proves to be useful:

  • If your net worth is less than 50,000 USD – you need a coverage worth 50-100-50
  • If your net worth ranges between 50,000 and 100,000 USD – you need a coverage worth 100-300-100.
  • If your net worth is more than 100,000 USD – you need a coverage worth 250-500-100.

If you are planning to lease or finance the car, your coverage should be more than 100-300-100. Anything less can dent a hole in your pocket.

2. Collision and Comprehensive Coverage

For years, car owners have neglected collision and Comprehensive Coverage. Well, this is an unwise move. Both these car insurance California policies are designed to protect your car after an accident. If your car is new and worth tens of thousands of dollars, you need a good collision and comprehensive coverage. The policy should be able to cover all damages caused to your vehicle. Meanwhile, old cars that are worth more than 3,000 USD need collision and comprehensive coverage. If your car is wrecked, the coverage will lend you a hand of help.

3. Medical Support

Just like many other states, medical coverage in California covers up to 25,000 USD. No matter how severe the accident is, medical coverage can help you. The insurance doesn’t depend on who caused the accident. But, medical coverage is totally optional. If you have opted for medical coverage, you will receive the following benefits:

  • Passengers in the vehicle will be completely covered.
  • People walking or running by will be covered.
  • All expenses that cannot be covered using health insurance will be handled.

If you don’t have health insurance coverage, you need medical insurance. Try to include at least 5,000 USD to your auto insurance California policy.

4. Underinsured & uninsured motorist coverage

Uninsured motorist and underinsured drivers can pose a serious risk during accidents. They will not be able to take care of all the expenses. In such cases, what would you do? According to experts, people with uninsured and underinsured coverage are always safe. They have a way of covering heavy bills and losses. In California, this car insurance policy is optional. You have the freedom to choose or decline the coverage.

Another car insurance California to help you would be the “Gap insurance”. As suggested by its name, the Gap Insurance policy bridges the difference between the cost to repair your car and the amount covered by your car insurance California.

Laws in the State of California

1. The good driver benefits

As mentioned previously, good drivers receive plenty of benefits from car insurance California service providers. If you have a good, positive driving record, you will be given many discounts and deals. The discounts fall in line with Prop 103. Here are two interesting ways to get a good deal:

  • You have held to your driving license for three consecutive years. You have followed rules and never lost (suspended) your license.
  • You have only one point in your driving record. People without any points are more likely to get discounts. Car insurance companies in California consider people with one (or zero) points as less risky.

2. A Plan for Risky Drivers

If you are unable to find a cheap car insurance California, the California Automobile Assigned Risk Plan (CAARP) can help you. This is a special plan for drivers who don’t satisfy the standard rules. The risk plan comes with many non-standard principles. The plan signs risky drivers with insurance companies. These companies decide on an insurance plan for you. You can pay the premiums in small installments. As your driving record becomes better, you can opt for standard auto insurance California.

To avail CAARP, you must get in touch with a certified best car insurance provider. Approach them and look for authentic agents. Next, work with the agent for feasible options. The agent will make sure you get the best possible deal. Stay in touch with the agent. As your driving records improve, they will make sure you get a better deal.

3. For the Poor

If you have a very low income, you can opt for the California Low-Cost Auto insurance plan. This is a special plan that offers a minimum bodily injury liability of 10,000 USD and a minimum property injury liability of 3,000 USD. To avail this benefit, you must satisfy the following conditions:

  • Be over 19 years of age
  • Have a valid driving license
  • Own a vehicle that is at most 25,000 USD

4. Comparative Fault Value

California is one of the 13 states in the country with comparative fault rule benefits. As suggested by its name, you will be able to recover a small amount of money after any accident. Even if the accident was your fault, you will be given a small percentage. For example: if 70% of the accident was due to a mistake you committed, at least 30 percent will be reimbursed. To avail this benefit, all claims must be made on time. The right documents, proofs, and requests should be initiated.

Speed Limits in California

Rural Interstates

Cars (MPH) Trucks (MPH)
70 55

Urban Interstates

Cars (MPH) Trucks (MPH)
65 55

Other Limited Access Roads

Cars (MPH) Trucks (MPH)
70 55


In most cases, California is a driver-friendly state. There are so many different types of policies to help you. But yes, you should work with reputed service providers and be a good driver.

Car insurance for cities in California

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