How to Get Cheap Car Insurance in California
Auto Insurance Requirements in California (2025 Update)
May 7, 2025
Is Full Coverage Required in California? (2025 Guide)
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Car insurance rates in California are going up, especially with the 2025 updates that raised the minimum coverage limits. Higher repair costs and inflation make it more expensive to stay insured.
That’s why I put together this guide to help you find cheap car insurance in California. I wanted something clear and practical to save money while staying fully covered.
I’ve included smart ways to lower your premium and find discounts. While this guide is based on expert insights, it’s always best to check with a licensed provider for personalized advice.
Understanding the Basics of Car Insurance in California
It's important to know what’s legally required and what factors impact cost before looking for cheap car insurance.
- Minimum coverage required in 2025: $30,000 per person, $60,000 per accident, and $15,000 for property damage under SB 1107.
- Optional coverages that affect cost: Collision, comprehensive, and uninsured/underinsured motorist coverage.
- Factors that influence premiums: Age, ZIP code, vehicle type, driving history, and credit score.
- Liability vs. full coverage: Liability is cheaper but only covers others’ damages, while full coverage also protects your vehicle.
Proven Strategies to Get Cheap Car Insurance in California
When saving money on car insurance matters, these proven strategies can lower your premium without cutting essential coverage.
1. Shop Around Using Comparison Tools:
Use national platforms like The Zebra or Policygenius alongside local California brokers to get a wide range of quotes, and make sure to recheck rates every 6–12 months, especially after changes like moving or buying a car.
2. Raise Your Deductible (But Know the Risks):
Raising your deductible can significantly lower your monthly premium, but it also means paying more out of pocket if you need to file a claim, so only choose this option if you’re financially prepared for emergencies.
3. Look for Discounts
Most California insurers offer discounts for:
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- Safe driving history
- Low annual mileage
- Bundling home and auto insurance
- Completing a defensive driving course
- Good student performance (usually for drivers under 25)
4. Choose the Right Car:
Insuring a car with strong safety ratings and affordable repair costs, like a hybrid or sedan, is usually much cheaper than covering a luxury or performance vehicle, which tends to come with higher risks and repair expenses.
5. Maintain a Clean Driving Record:
Keeping a spotless driving record free of violations, accidents, or DUIs not only helps you avoid surcharges but can also earn you long-term discounts from your insurer.
6. Use Usage-Based Insurance (UBI) Apps
- Telematics programs like Progressive Snapshot or Allstate Drivewise track driving habits and offer discounts for safe behavior.
- Ideal for low-mileage or cautious drivers looking for personalized savings.
7. Consider the California Low Cost Auto Insurance (CLCA) Program
If you meet income and vehicle requirements, CLCA can offer basic liability coverage at a reduced rate, especially useful if you drive an older car and need affordable legal protection.
Cheap Insurance for Specific Situations
Different situations require tailored strategies for affordable car insurance. Here’s how to save based on your unique circumstances:
- New Drivers & Teens: New drivers face higher premiums due to inexperience. Consider defensive driving courses and look for good student discounts to lower costs.
- Seniors: Seniors can save by taking defensive driving courses or reducing coverage on older vehicles. Some insurers offer senior discounts for safe drivers.
- Rideshare & Gig Drivers (Uber, Lyft): Rideshare drivers need specialized coverage. Either add a rideshare endorsement to your policy or get a separate rideshare insurance policy.
- Low-Income Drivers: Low-income drivers may qualify for California’s Low-Cost Auto Insurance (CLCA) program, offering basic coverage at reduced rates. Other discounts may apply for low-mileage driving.
- People with Past DUIs or Accidents: Drivers with DUIs or accidents on their record may face higher premiums. Shop around for quotes, and consider taking a DUI education course for discounts.
Common Mistakes to Avoid When Looking for Cheap Coverage
When searching for affordable car insurance, avoid these common pitfalls to ensure you get the best deal with the right coverage.
- Choosing Only the Lowest Premium Without Checking Coverage Details: Opting for the cheapest premium can leave you underinsured. Always ensure your policy covers all the essentials, like liability and comprehensive coverage.
- Ignoring Insurer Reputation or Claim Service: A low premium doesn’t matter if your insurer has poor customer service or a bad claims process. Research the company’s reputation for handling claims efficiently.
- Missing Out on Discounts by Not Reporting Life Changes: Make sure to update your insurer on changes like getting married or switching jobs, as these can unlock discounts and save you money on your premiums.
Frequently Asked Questions
Final Checklist Before Buying a Policy
Before finalizing your car insurance purchase, ensure you’ve taken the following steps to make a well-informed decision:
✅ Reviewed multiple quotes – Compare quotes from different providers to find the best rate.
✅ Verified legal compliance for 2025 – Confirm that your policy meets the updated state requirements.
✅ Check discount eligibility – Make sure you’re receiving any applicable discounts for safe driving or other factors.
✅ Selected a financially stable provider – Choose an insurer with a strong financial rating and good customer service.
✅ Read policy fine print – Carefully review your policy’s terms and conditions to avoid surprises later.
Conclusion
Securing affordable car insurance in California is achievable with the right approach and knowledge. By following the strategies shared, you can make informed decisions for legal compliance and financial protection.
Ready to start saving? Get a free quote from FE Insurance today and find the best coverage for your needs.
