California, August 19, 2025
News Summary
California residents can find various affordable auto insurance options tailored to their budgets. A recent study reveals significant differences in monthly premiums based on coverage types, locations, and driving records. CSAA offers the lowest liability coverage at $26/month, while full coverage is cheapest at AAA for $81/month. The study also highlights how traffic violations affect insurance rates, revealing a substantial increase for offenses like DUIs. Additionally, California’s Low Cost Auto Insurance program helps low-income drivers save on premiums.
California residents searching for affordable auto insurance will find a range of options to fit their budgets, with monthly rates varying significantly based on coverage types, locations, and driving records. A recent study by Way.com analyzed auto insurance premiums across various ZIP codes in California, revealing the providers with the lowest rates as well as insights into how traffic violations impact costs.
Cheapest Providers in California
For those looking for liability coverage, the study identifies CSAA as the most affordable option at just $26 per month. Following closely, USAA offers liability insurance at $43, while Progressive provides coverage for $49 per month. AAA NorCal is next at $50, and Wawanesa completes the top five with premiums of $51.
When seeking full coverage insurance, AAA takes the lead as the cheapest provider, charging an average of $81 per month. CSAA is the next best option at $112, while Capital Insurance Group offers full coverage at $119. National General and State National provide full coverage at $121 and $123 respectively.
Lowest and Highest Costs by City
Geographically, auto insurance rates are not uniform across California. The city of Mount Shasta boasts the lowest average monthly premium at $126. Other cities with competitive rates include Weed and Yreka, both averaging $128 per month, followed by Montague at $131 and Dunsmuir at $132.
Conversely, residents in Beverly Hills face the highest average premiums at $269 per month. Glendale and Tarzana also rank among the most expensive cities for car insurance, with average premiums of $266 and $264, respectively.
Impact of Traffic Violations on Rates
Driving behavior significantly affects auto insurance rates in California. The study outlines average rates following various traffic violations: those with no infractions pay around $183, while individuals involved in not-at-fault accidents see similar costs. However, rates climb considerably for more serious violations—seatbelt infractions average $247, while minor speeding violations (6-10 MPH over the limit) are priced at $260. More severe offenses, such as DUIs, raise premiums to $476, and reckless driving averaging $452. Those driving with a suspended license can expect an average rate of $371, while leaving the scene of an accident results in premiums around $459.
Potential Future Increases
As the auto insurance industry evolves, external factors such as tariffs on imported parts could lead to a potential increase of up to 7% in rates by the latter half of 2025.
California’s Low Cost Auto Insurance Program
The average annual auto insurance premium in California is approximately $1,910. However, through California’s Low Cost Auto Insurance program, eligible drivers can pay around $450 per year. This program is aimed at low-income individuals and families, with eligibility criteria based on good driving records and income limits of $39,125 for individuals and $80,375 for families of four.
To save money on auto insurance, consumers are encouraged to actively shop around and compare coverage options. This diligence can uncover significant savings and help drivers understand their best choices for coverage.
Summary of Key Auto Insurance Rates in California
| Insurance Provider | Liability Coverage (Monthly) | Full Coverage (Monthly) |
|---|---|---|
| CSAA | $26 | $112 |
| USAA | $43 | Not listed |
| Progressive | $49 | Not listed |
| AAA NorCal | $50 | $81 |
| Wawanesa | $51 | Not listed |
| Capital Insurance Group | Not listed | $119 |
| National General | Not listed | $121 |
| State National | Not listed | $123 |
FAQ
What is the average auto insurance premium in California?
The average annual auto insurance premium in California is approximately $1,910.
Which provider offers the cheapest liability coverage in California?
CSAA offers the cheapest liability coverage at $26 per month.
How do traffic violations affect insurance premiums?
Traffic violations can significantly increase premiums. For example, a DUI can raise rates to $476, while a seatbelt violation can cost about $247.
What is California’s Low Cost Auto Insurance program?
The Low Cost Auto Insurance program aims to help low-income drivers with good records pay around $450 per year for coverage, subject to eligibility based on income.
Deeper Dive: News & Info About This Topic
- KEYT: Car Insurance Rates in California – August 2025
- Wikipedia: Auto Insurance
- Santa Fe New Mexican: Car Insurance Rates in California – August 2025
- Google Search: California car insurance rates
- NBC Bay Area: Car Insurance Premium Going Up
- Encyclopedia Britannica: Automobile
- SFGate: Why California Car Insurance Rates Climb – 2025
- Google Scholar: car insurance California
- Insurify: Why is Car Insurance So Expensive in California?
- Google News: car insurance California
Author: STAFF HERE LOS ANGELES WRITER
LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the LA Auto Show, Hollywood Film Awards, and the Los Angeles Marathon. Our coverage extends to key organizations like the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology that power the local economy such as Warner Bros. and SpaceX. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HEREHuntingtonBeach.com, and HERESantaAna.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
