Car insurance is the most searched insurance topic in California, and most people are asking the same thing: how do I pay less? California sets auto rates differently than most states, so the usual advice doesn't always apply here. Below are the steps that make the biggest difference for California drivers, and the coverage you shouldn't cut to save a few dollars.
How California sets your car insurance rate
Under Proposition 103, California insurers must base auto rates mainly on three factors, in this order of importance:
Your driving safety record
How many miles you drive each year
How many years of driving experience you have
Other approved factors also play a role, such as the car you drive and the coverage you choose. California also doesn’t allow insurers to use your credit score to set car insurance rates. That means your driving habits matter more here than almost anywhere else.
1. Make sure you’re getting the Good Driver Discount
California law requires a Good Driver Discount of at least 20% for drivers who qualify. In general, you qualify if you’ve been licensed for the past three years, have no more than one violation point in that time, and haven’t been principally at fault in an accident that caused injury or death. Ask us to confirm it’s on your policy.
2. Update your annual mileage
Miles driven is the second most important rating factor in California. If you now work from home, retired, moved closer to work or stopped commuting, your mileage on file may be too high. An updated estimate can lower your premium.
3. Bundle your policies
Combining auto with home, condo or renters insurance is one of the most common ways our clients save. Insuring more than one vehicle on the same policy can help too. See more ways to save.
4. Choose the right deductible
Raising your collision and comprehensive deductibles usually lowers your premium. Pick an amount you could comfortably pay out of pocket if you had to.
5. Review coverage on older cars
If your car is older and paid off, the cost of collision and comprehensive coverage may be high compared to what the car is worth. We can review whether that coverage still makes sense for your vehicle.
6. Drivers 55 and older: take a mature driver course
If you’re 55 or older and the principal driver of your car, completing a DMV-approved mature driver improvement course qualifies you for a discount. The discount lasts three years, and you can retake the course to keep it.
7. Ask about other discounts
Depending on the insurer and your situation, you may qualify for savings for good students, anti-theft devices, vehicle safety features, paying in full, or signing up for paperless billing and automatic payments. Discounts vary, so ask what’s available to you.
8. Keep your record clean
Because your driving record is the top rating factor in California, avoiding tickets and at-fault accidents protects your rate for years. A single violation can affect your eligibility for the Good Driver Discount.
9. See if you qualify for California’s Low Cost Auto program
The state’s California Low Cost Auto Insurance Program offers basic liability coverage for income-eligible drivers. You must have a valid California license, own a vehicle worth $25,000 or less, be at least 16 and have a good driving record. Learn more at mylowcostauto.com.
10. Compare your options with a local agent
The cheapest policy isn’t always the best value. A licensed agent can review your current coverage, make sure every discount you qualify for is applied, and show you how different limits and deductibles change your price.
What not to cut
Since January 1, 2025, California’s minimum liability limits are $30,000 per person and $60,000 per accident for injuries, and $15,000 for property damage. Those minimums can be used up quickly in a serious accident, especially with today’s medical and vehicle repair costs. Read more about the new California minimum limits.
Before you lower your coverage to save money, consider keeping:
Higher liability limits to protect your savings and future income
Uninsured and underinsured motorist coverage in case you’re hit by a driver with little or no insurance
Comprehensive coverage for theft, vandalism, falling objects and flood damage
Homeowners and drivers with more to protect can also add an umbrella policy for extra liability coverage.
Get a car insurance quote in California
We help drivers in Glendale, Los Angeles and across California find the right coverage at the right price. Request an auto quote or call (818) 459-3400. Learn more about auto insurance.
Discounts and eligibility vary by insurer and are subject to policy terms and underwriting. CA License #6014107.