California is now one of the lower cost states for automobile insurance; its 2011 average annual premium of $1,143 is well below the national average of $1,440.

Annual Changes

There has been a consistent downward trend in auto insurance rates in California over the past years, with an 11% decrease from the beginning of 2010 to 2011 following a 22% drop between 2009 and 2010. It is impossible to predict whether rates will fall further or whether they have stabilized, so that constant monitoring and obtaining new quotes from this site is highly recommended. There is no fixed rate for auto insurance in California, so that each insurer can set its own prices for different drivers and cars. (It should be noted that the state does provide a special insurance program for high-risk drivers).

Seasonal Changes

In 2010, April, May and June were the months in which premiums rose substantially, not settling back to their original level until August. Prices then declined steadily, with a small peak in December, until stabilizing once again for January 2011. Shopping around and checking prices is therefore always advised, even during the year.

Insurance Requirements

In California, minimum insurance requirements include personal liability coverage of $15,000 per person and a $30,000 limit per accident, and the minimum property damage liability coverage is only $5,000. However, California is under tort law, where one party must be judged responsible for any accident and that party is then held liable for the entire cost of the accident. Higher limits are strongly recommended to protect assets in the event of a lawsuit. Coverage against damage caused by an uninsured or under-insured driver is available in California, and is highly recommended.

Advice for Getting the Best Deals

Car insurance in California is offered by national, regional and statewide insurers. Each company sets its own rates for different drivers and cars. Experts recommend obtaining multiple quotes from reliable insurance companies that are rated A or higher by A. M. Best. The J. D. Power ratings provide unbiased consumer service and satisfaction information.

The best way to get the lowest rates for car insurance in California is to use our site to get multiple quotes as well as to monitor changing rates.