Table of Contents
If you’re frustrated by the skyrocketing cost of car insurance in California, you are definitely not alone. Why car insurance is expensive in California, you ask? While factors like accidents and traffic violations certainly play a role, a variety of larger trends are pushing premiums even higher.
In fact, according to reports, auto insurance rates in California rise by an average of 18%. In this blog, we’ll dive into the key reasons why car insurance is expensive in California and give you smart strategies to find more affordable coverage, including how you can save up to 40% with Beem. Let’s jump in!
Why Car Insurance is Expensive in California
Opinions vary, but several major issues are clearly driving insurance costs higher across the state.
1. Expensive Healthcare Costs
California’s high cost of living extends to its healthcare system. After a car accident, insurance providers often have to cover expensive medical bills for injuries, including emergency room visits, surgeries, and physical therapy.
As healthcare costs continue to rise, insurance companies pass those higher expenses onto drivers through higher premiums. Comparing and finding affordable car insurance premiums and saving up to 40% through Beem is one way to fix this scenario.
People Also Read: Which Gender Pays More For Car Insurance?
2. Dangerous Highways and Heavy Traffic
California is home to some of the most congested and dangerous roads in the country. According to reports, three of the top 10 most dangerous highways in the U.S. are in California, contributing to a higher likelihood of accidents. More accidents mean more claims, which drive up insurance costs for everyone, even safe drivers.
3. High Number of Uninsured and Underinsured Motorists
Despite laws requiring insurance, a significant percentage of California drivers remain uninsured or underinsured. When accidents involve drivers without proper coverage, insured drivers and their insurance companies end up absorbing the financial burden, leading to higher premiums across the board.
4. Vehicle Theft Rates
California consistently ranks at the top of the list for vehicle thefts. In the last few years, over 200,000 vehicles were stolen in the state, according to reports. Frequent thefts not only create financial losses for individuals but also force insurers to charge higher rates to cover the increased risk.
5. Expensive Auto Repairs
Everything is pricier in California, including auto repairs. Higher labor costs, expensive replacement parts, and sophisticated modern vehicles drive up repair bills after accidents. Insurance companies must budget for these costs, meaning drivers face higher premiums to cover the increased risk of payouts.
How to Get Cheaper Car Insurance in California
While it’s true that rates are high, it’s not impossible to find affordable car insurance if you take the right steps. Here’s how:
1. Compare Multiple Quotes
Never settle for the first quote you receive. Insurance companies calculate rates differently based on your location, vehicle type, and driving history.
Use platforms like Beem to compare personalized car insurance quotes from multiple providers and find a better deal.
2. Bundle Policies
If you own a home, rental property, or even other vehicles, consider bundling your insurance policies. Insurance providers often give significant discounts to customers who purchase auto insurance alongside homeowners’, renters’, or life insurance.
3. Maintain a Clean Driving Record
Traffic violations, speeding tickets, and at-fault accidents will cause your insurance rates to spike.
Practicing safe driving and maintaining a clean record can help you qualify for lower premiums and safe driver discounts over time.
4. Raise Your Deductible
A higher deductible means you’ll pay more out of pocket before your insurance kicks in — but it can lower your monthly premium. Just be sure you can comfortably afford the deductible if you ever need to file a claim.
5. Look for Discounts
Many insurers offer discounts for things like:
- Installing anti-theft devices
- Taking defensive driving courses
- Having good grades (for student drivers)
- Maintaining a strong credit score
Always ask about available discounts when shopping for a new policy.
People Also Read: Why is My Car Insurance Going Up?
Navigating California’s Car Insurance With Beem
The rising cost of car insurance in California can feel overwhelming, but understanding the reasons why car insurance is expensive in California it can give you an edge. While you can’t control vehicle theft rates or healthcare costs, you can control which insurer you choose, your driving habits, and how you structure your policy.
By comparing quotes, seeking discounts, and maintaining a clean record, you can find a policy that offers the protection you need without draining your budget.
Ready to find the right insurance plan for you? Visit Beem to compare car insurance quotes tailored to your driving profile and start saving up to 40% today!
FAQs on Why Car Insurance is Expensive in California
How much is the average car insurance cost in California?
On average, California drivers pay around $2,500 per year for full coverage car insurance. Minimum coverage, which meets only the state’s legal requirements, averages about $700 to $800 per year. However, rates can vary widely depending on factors like your city, driving record, and the type of vehicle you drive.
Why are California car insurance rates rising so quickly?
California’s insurance rates are climbing due to a mix of high accident rates, increased vehicle theft, skyrocketing healthcare and repair costs, and a larger number of uninsured drivers. Inflation and supply chain issues have also made vehicle parts more expensive, further pushing up insurance premiums.
Which city in California has the highest car insurance rates?
Los Angeles tops the list for the highest car insurance rates in California. Drivers in LA often pay 25% to 40% more than the state average, largely because of high traffic density, accident frequency, and theft rates.
How can I get the cheapest car insurance in California?
To get the cheapest rates in California: compare quotes from multiple insurers, bundle auto insurance with home or renters insurance, maintain a clean driving record, take advantage of available discounts, and choose a higher deductible if you can afford it. Using a platform like Beem can help you easily find policies that fit your budget and needs.
