Why Is Car Insurance So Expensive in California? (2026)
The average annual cost of car insurance in California is $2,309, which is 7% higher than the U.S. average of $2,144.
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Written bySarah Archambault
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Sarah ArchambaultInsurance Writer, Editor
Experienced personal finance writer
Background working with banks and insurance companies
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Edited byKatie Powers
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Katie PowersLicensed P&C Agent, Senior Insurance Editor
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
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David MarlettAdvisor
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Quick Facts
The average cost of California car insurance has increased nearly 40% in the last five years, from around $1,700 per year to nearly $2,400 for full coverage.
State-specific factors — like policy changes, comparatively high rates of fatal accidents, and exposure to severe weather, like wildfires — all affect California insurance rates.
California car insurance rates will increase by about 1% in 2026, according to Insurify estimates.
4 reasons why car insurance is so expensive in California
Here’s a closer look at some of the factors that keep California car insurance costs higher than the national average.
Increases to California minimum insurance requirements
As of Jan. 1, 2025, California increased its minimum liability insurance requirements to 30/60/15, causing rates to rise.[1] Drivers can forgo the state’s auto insurance requirement by choosing to self-insure — but at a cost of $75,000 for the cash deposit, most drivers choose to purchase an auto policy instead.
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Extreme weather and natural disasters
Many parts of California are vulnerable to extreme weather and natural disasters that cause serious damage to vehicles, like wildfires and earthquakes.
In 2024, California had more than 8,000 wildfires. And the catastrophic July 2024 Southern California wildfires resulted in significant vehicle property damage — with 5,597 car insurance claims filed and more than $73 million in payouts to policyholders.[2]
Dense urban traffic and high accident rates
California has multiple densely populated, high-traffic urban areas where crash risks are high. This can affect your California car insurance costs.
For example, Los Angeles is one of the most populated cities in the U.S. It sees higher rates of fatal crashes, with close to 30% of fatalities involving pedestrians, and hit-and-runs are common, according to data from Los Angeles County Public Health.
High percentage of uninsured drivers
California has the eighth-highest number of uninsured motorists of all states, according to the Insurance Information Institute. About 20% of California drivers are uninsured despite California’s mandatory minimum liability insurance requirements. By comparison, in Maine, the state with the lowest percentage of uninsured motorists, only around 6% of drivers are uninsured.
How California car insurance rates have changed
At the end of 2024, the average full-coverage policy premium in California reached a high of $2,814. But in late 2025, rates started to come down after being on an upward trajectory since early 2022. As of December 2025, the average full-coverage rate was $2,379, a more than 15% decrease from the 2024 high, by comparison.
This graph illustrates how prices have changed in California over the past five years.
Average California Car Insurance Rates Over the Past Five Years
State Name | 2021-12 | 2022-01 | 2022-02 | 2022-03 | 2022-04 | 2022-05 | 2022-06 | 2022-07 | 2022-08 | 2022-09 | 2022-10 | 2022-11 | 2022-12 | 2023-01 | 2023-02 | 2023-03 | 2023-04 | 2023-05 | 2023-06 | 2023-07 | 2023-08 | 2023-09 | 2023-10 | 2023-11 | 2023-12 | 2024-01 | 2024-02 | 2024-03 | 2024-04 | 2024-05 | 2024-06 | 2024-07 | 2024-08 | 2024-09 | 2024-10 | 2024-11 | 2024-12 | 2025-01 | 2025-02 | 2025-03 | 2025-04 | 2025-05 | 2025-06 | 2025-07 | 2025-08 | 2025-09 | 2025-10 | 2025-11 | 2025-12 | 2026-01 | 2026-02 | 2026-03 | 2026-04 | 2026-05 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| California | 1,704 | 1,704 | 1,700 | 1,694 | 1,702 | 1,710 | 1,718 | 1,720 | 1,716 | 1,711 | 1,706 | 1,701 | 1,695 | 1,694 | 1,692 | 1,690 | 1,696 | 1,713 | 1,732 | 1,735 | 1,759 | 1,776 | 1,793 | 1,815 | 1,846 | 1,906 | 1,984 | 2,145 | 2,273 | 2,406 | 2,513 | 2,643 | 2,722 | 2,741 | 2,761 | 2,799 | 2,815 | 2,807 | 2,757 | 2,698 | 2,668 | 2,631 | 2,580 | 2,518 | 2,476 | 2,449 | 2,410 | 2,390 | 2,382 | 2,379 | 2,367 | 2,366 | 2,373 | 2,385 |
| United States | 1,567 | 1,568 | 1,572 | 1,578 | 1,591 | 1,602 | 1,608 | 1,612 | 1,618 | 1,624 | 1,632 | 1,640 | 1,650 | 1,665 | 1,689 | 1,719 | 1,758 | 1,802 | 1,850 | 1,887 | 1,919 | 1,956 | 1,984 | 2,006 | 2,036 | 2,076 | 2,128 | 2,194 | 2,240 | 2,299 | 2,342 | 2,368 | 2,389 | 2,386 | 2,373 | 2,370 | 2,361 | 2,350 | 2,365 | 2,366 | 2,366 | 2,354 | 2,341 | 2,317 | 2,285 | 2,256 | 2,227 | 2,214 | 2,221 | 2,222 | 2,224 | 2,232 | 2,238 | 2,236 |
California cities with the most expensive car insurance
Where you live in California affects your risk of filing a claim and how much you pay for car insurance. For example, if you live in an area that’s more prone to wildfires, you may pay more for comprehensive coverage. You could also pay more if you live in a densely populated city with heavy traffic congestion and high crash rates, or a location where vehicle theft is common.
For instance, rates in Los Angeles average $145 per month for liability insurance and $289 for full coverage. Premiums in the less densely populated city of Bakersfield average just $80 and $175 per month, respectively.
These cities have the highest average monthly car insurance costs in California:
City  | Average Monthly Quote |
|---|---|
| Glendale | $261 |
| West Hollywood | $241 |
| Northridge | $235 |
| Studio City | $217 |
| Los Angeles | $217 |
Disclaimer: Table data is based on real-time California quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.
Insurance costs in each city depend on multiple factors, including:
Glendale: A suburb of Los Angeles, Glendale is a high-traffic area where accident claims are common.
West Hollywood: This densely populated area between Los Angeles and Beverly Hills has heavy congestion and a high accident rate.
Northridge: Some of California’s most dangerous intersections are located in this residential commuter area in northern Los Angeles.
Studio City: This Los Angeles neighborhood sees lots of traffic congestion during rush hour, and accident claims are common.
Los Angeles: The densely populated city has high accident rates, and fatal crashes involving pedestrians and bicyclists are common.
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How to lower your car insurance rate in California
The following strategies can help you lower your California car insurance rates:
Compare car insurance rates. Shop around to compare quotes from several different insurance companies to find the cheapest rates in California.
Raise your deductible. A higher insurance deductible can help you save on your premium. Just be sure you have enough savings to cover your deductible if you have to file a claim.
Reduce coverage limits. You can save by lowering coverage limits or dropping add-on coverage you no longer need. But it’s important to make sure you have adequate coverage to protect yourself financially before switching up your policy.
Bundle your policies. Many California insurance companies offer bundling discounts when you buy your car insurance policy with other insurance products, like homeowners or renters insurance.
Ask about discounts. Talk to your insurer to see if you may be eligible for any discounts, like California’s Good Driver Discount.
Why car insurance is so expensive in California FAQs
Full-coverage car insurance in California costs more than the national average. The following information can help you understand why rates are higher and how to find the best California auto insurance for your coverage needs and budget.
How much is the average car insurance in California?
On average, Californians pay $2,385 for full coverage annually, according to Insurify data. Car insurance prices are about 7% higher than the national average. You may have lower or higher costs based on your age, driving history, location, liability limits, and other factors.
What factors contribute to high car insurance rates in California?
Many factors affect California car insurance rates, including minimum-coverage laws, your location, age, driving record, and the type of vehicle you drive. But California car insurance companies can’t use your credit history to set your auto coverage rates.
How can you lower your California insurance costs?
You can lower California auto insurance rates by comparing insurance quotes from different companies. You can also ask about discounts, raise your deductible, or consider cutting back on coverage you no longer need to reduce your car insurance premiums. Drivers who can’t afford insurance can apply for the state’s low-cost coverage program online at MyLowCostAuto.com.[3]
Sources
- California Department of Motor Vehicles. "Insurance Requirements."
- California Department of Insurance. "California's public consumer claims tracker continues to show progress in wildfire claim amounts, payments, and auto claims."
- California’s Low Cost Auto Insurance. "Who Qualifies?."
Methodology
Insurify data scientists analyzed more than 190 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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Sarah ArchambaultInsurance Writer, Editor
Experienced personal finance writer
Background working with banks and insurance companies
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Katie PowersLicensed P&C Agent, Senior Insurance Editor
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
David MarlettAdvisor