The Best Car Insurance Companies in California

While there is a bevy of different factors at play here, the high urban population of the state contributes to its higher rates. More urbanized states tend to have more car accidents and thefts, and California is no exception. There have also been significant weather-related events, such as wildfires, which have prompted insurance companies across the board to raise their rates in response.

To purchase insurance in the state of California, you must either be a resident or prove that your vehicle is principally garaged within the state. An exemption applies to those with active military status.

With an average of six million accidents each year, you will likely have to file a claim in your lifetime. When that happens, you might want full coverage liability instead of minimum coverage. Even with a simple auto accident, it’s expected the other party will experience damages totaling more than $ 25,000. If the other vehicle has multiple passengers with injuries, costs could exceed $ 65,000 for damages to include medical bills, lost wages or lost income and pain and suffering.

In most cases, upgrading to a top-tier 50/100/50 plan isn’t as daunting as you might think. The extra coverage can add just a few hundred dollars, a drop in the bucket compared to out-of-pocket expenses in the event of an accident.

When considering more than the minimum coverage, collision and comprehensive insurance are a critical part of your policy. Factors like your driving style and where you live can determine whether you are at high risk for an accident.

Collision insurance protects you when your vehicle hits an object or another car. It can also apply if your vehicle is damaged from road conditions, like potholes. Comprehensive insurance, on the other hand, covers a wide variety of damages. It applies if you hit a deer or a tree branch falls on your car. Vandalism and theft are covered, and you can also claim comprehensive insurance in the event of a natural disaster, such as California’s infamous wildfires. If you are more likely to have one kind of accident over another, that can help determine your type of insurance.

In a no-fault state, your car insurance will cover your vehicle damages and medical expenses, regardless of who causes the accident. However, California is considered a fault state, so the person that causes the accident is responsible for the damages. Because of that, drivers in California are required to carry a higher amount of car insurance than drivers in no-fault states. Drivers in no-fault states are required to have personal injury protection (PIP) insurance, which essentially takes the place of bodily injury coverage.

An SR-22 policy is required for a few different reasons, such as those who had an accident without insurance or have a DUI or DWI on their record. It also applies if you have multiple traffic violations over a short period. The SR-22 should remain on your policy until otherwise ordered by the court.

In these instances, SR-22 insurance may be required for the driver to remain licensed. It is a policy that you can purchase from your regular insurance provider, but it is a longer and more expensive process because of the extensive paperwork required.

The California Automobile Assigned Risk Plan (CAARP) is a way for drivers who can’t get insurance or can’t afford insurance, to purchase affordable coverage. There are two plans available through CAARP—insurance for low-income residents, and insurance for high-risk drivers. The program was designed to ensure every California driver has access to insurance, regardless of their income level or driving history.

With CAARP, drivers who can’t get voluntary insurance are entered into a pool, and participating insurance companies will accept a certain number of drivers to insure. If you use CAARP for protection, there’s no guarantee that it will be cheaper than a regular policy. However, it does ensure that you will get coverage if you’re not able to get insurance on your own.

Different auto insurers focus on different types of discounts. In order to find the best auto insurance in California for you, shop around to see what savings you may be eligible for. Get multiple quotes before you make a decision to make sure you don’t overpay.

At the very least, you should get enough to meet the state’s minimum auto insurance requirements, which only includes liability coverage. Adding collision coverage financially protects you and your vehicle after an accident, while adding comprehensive coverage protects your car from weather events, vandalism and theft.

In the U.S., the average annual premium for auto insurance is just over $ 1,760. That comes to about $ 146 a month. California’s average costs are the same. Just remember you’ll pay more in certain situations, like being a younger driver or having a history of auto claims.