Finding Cheap Car Insurance in California – My Actual Experience
When I moved to California a few years ago, I nearly had a heart attack at my first car insurance quote. Like, I knew California was expensive, but come on. The quote was literally double what I was paying in my previous state.
After spending way too many hours researching and calling around, I figured out how to actually get a decent rate. Heres what worked for me.
Why California Insurance Costs So Much
Before we get into solutions, its worth understanding why California car insurance is so ridiculous.
Traffic. So much traffic. More cars on the road means more accidents. More accidents mean more claims. More claims mean higher premiums. Pretty simple math, unfortunately.
Also, California has a lot of expensive cars. And car theft is a thing (my neighbors Catalytic converter got stolen twice last year). And the weather is nice so people drive more. Basically, lots of reasons for insurers to charge more.
The point is, its not just you – everyone in California is paying more. But some people are paying way more than they need to.
What Actually Affects Your Rate
Some of this you can control, some you cant:
Your age and driving experience: If youre under 25, sorry – youre going to pay more. Not much you can do except wait. And drive carefully.
Where you live: I moved from a suburb to Oakland and my rate went up 40%. Just from the zip code change. Urban areas cost more. If youve got flexibility on where you live, this matters.
Your car: My buddy has a BMW M3. His insurance is insane. I have a Honda Civic. Much more reasonable. Boring cars cost less to insure. Something to think about when youre car shopping.
Your driving record: This is a big one. A clean record for 3-5 years can save you hundreds. One at-fault accident can haunt you for years. That speeding ticket you got in 2021? Yeah, theyre still seeing that.
Your credit: Controversial, but most insurers look at your credit score. Better credit = lower rates. Not fair, maybe, but it is what it is.
Companies I Actually Compared
I got quotes from probably 10 different insurers. Heres what I found:
Geico: Honestly pretty good rates for me. Their online quote system is easy to use. Ended up being my second-cheapest option.
Progressive: Competitive, especially if you do their Snapshot thing where they track your driving. I didnt love the idea of being monitored, but if youre a safe driver it can save you money.
State Farm: More expensive than Geico for me, but they have local agents which some people prefer. I dont really care about having a local office, so this wasnt a selling point.
Wawanesa: This was my cheapest quote by a significant margin. Theyre a California-specific insurer most people havent heard of. Downside: you have to call them, you cant do everything online. But for the savings, I was willing to make a phone call.
Mercury: Also competitive. Another one that flies under the radar but has good rates in California.
AAA: If youre already a member, worth getting a quote. I wasnt, and adding the membership cost made it not worth it for me.
Discounts That Actually Saved Me Money
When you get a quote, make sure youre getting all the discounts youre eligible for. Some of these saved me real money:
Bundling: I put my renters insurance with the same company. Saved like 10%.
Good driver: If you havent had an accident or ticket in a few years, you should qualify for this.
Low mileage: I work from home a lot and only drive about 8,000 miles a year. Way below average. Most companies have a discount for this.
Paid in full: Paying every 6 months instead of monthly saved me a few bucks. Not huge, but adds up.
Defensive driving course: Some companies give you a discount if you take an approved driving course. Usually an online thing that takes a few hours. I didnt do this, but its an option.
Usage-Based Insurance – Worth It?
A lot of companies now offer programs where they track your driving and adjust your rate based on how safe you are. Progressive has Snapshot, State Farm has Drive Safe and Save, etc.
My take: if youre genuinely a safe driver – you dont brake hard, you dont drive at 2am, you dont speed – these programs can save you 20-30%. Thats significant.
But if youre like me and occasionally have a lead foot on the freeway… maybe not. I tried one of these for a month and my “score” was not great. I decided Id rather pay a little more and not feel like Im being watched.
The Minimum Coverage Thing
California requires pretty minimal coverage:
- $15,000 per person for injury
- $30,000 per accident for injury
- $5,000 for property damage
Thats… not much. If you cause an accident that injures someone, $15,000 is not going to cover their medical bills. Youll be personally liable for the rest.
I carry way more than the minimum. Its more expensive, yes. But the alternative is potentially being financially ruined if something bad happens. Not worth the savings, in my opinion.
What I Ended Up Doing
After all my research, I went with Wawanesa. Lowest quote, good reviews, decent customer service when I called. Been with them two years now, no complaints.
I carry 100/300/100 coverage (thats $100k per person, $300k per accident for injury, $100k for property). Plus uninsured motorist coverage because, lets be real, not everyone on California roads is insured.
Total cost: about $140/month. Not cheap, but way better than the $280 quote I got initially from one of the big national carriers.
How to Actually Shop
Heres my process:
- Get quotes from at least 5 companies. Yes, its annoying. Do it anyway.
- Make sure youre comparing the same coverage levels. A cheap quote with minimum coverage is not an apples-to-apples comparison.
- Ask about every possible discount. Sometimes they dont apply them automatically.
- Check reviews. A cheap insurer that wont pay claims isnt actually saving you money.
- Re-shop every year or two. Rates change. Loyalty rarely pays off in insurance.
One Last Thing
Increase your deductible if you can afford to. I have a $1,000 deductible instead of the standard $500. Saves me about $15/month in premiums. If I do have an accident, Ill pay an extra $500 out of pocket. But Ive been driving for 15 years with no at-fault accidents. The math works in my favor.
Of course, this only makes sense if you actually have $1,000 in savings you could use if needed. Dont raise your deductible if youd be screwed coming up with the money.
California insurance is expensive. No getting around that. But with some effort, you can at least make sure youre not overpaying.
