California, August 19, 2025
News Summary
A recent study by Way.com highlights significant variations in auto insurance rates across California based on provider, coverage type, and geography. CSAA offers the lowest liability coverage at $26 per month, while full coverage options are cheapest with AAA at $81. Mount Shasta has the lowest average insurance rates, whereas Beverly Hills ranks as the most expensive. Additionally, traffic violations can significantly raise premiums, making it essential for consumers to explore affordable options, especially for low-income residents eligible for California’s Low Cost Auto Insurance program.
California has recently been highlighted for its diverse auto insurance rates, illustrating significant variances based on provider, coverage type, and geographical location. A comprehensive study conducted by Way.com has revealed key findings regarding the cheapest auto insurance options available across the state.
According to the research, CSAA offers the most affordable liability coverage in California at just $26 per month, followed by USAA at $43, and Progressive at $49. AAA NorCal and Wawanesa also feature among the top five providers, offering liability insurance for $50 and $51 per month respectively. For a more comprehensive insurance plan, AAA provides the cheapest full coverage at $81 per month, with CSAA following at $112 and Capital Insurance Group at $119.
The study further identifies Mount Shasta as the city with the lowest average car insurance rates, offering coverage for approximately $126 per month. Other cities with relatively low premiums include Weed and Yreka at $128, Montague at $131, and Dunsmuir at $132. In stark contrast, Beverly Hills tops the list for the most expensive car insurance, averaging $269 per month, closely followed by Glendale at $266 and Tarzana at $264.
Furthermore, the study highlights how traffic violations can dramatically escalate car insurance rates in California. For instance, drivers without violations pay an average of $183 per month. However, the average premium rises significantly for those with violations: seatbelt violations raise rates to $247; speeding 6-10 MPH over the limit elevates costs to $260; and serious offenses like a DUI can lead to averages of $476.
Looking towards the future, it is anticipated that tariffs on imported parts could increase auto insurance rates in California by up to 7% in the latter half of 2025. Currently, the average annual premium for auto insurance in California stands at approximately $1,910. However, some drivers may qualify for the California Low Cost Auto Insurance program, which provides coverage at about $450 per year, contingent upon maintaining a clean driving record and meeting specific income limits.
To be eligible for this program, individuals must have an income not exceeding $39,125 and families of four should earn no more than $80,375. This creates an opportunity for lower-income residents to access essential car insurance services.
In summary, consumers are encouraged to take the time to shop around and compare different auto insurance policies to find the best deals suitable for their needs. With significant differences in rates between companies and locations, diligent research can lead to substantial savings.
Frequently Asked Questions
What is the cheapest liability coverage in California?
CSAA offers the cheapest liability coverage in California at $26 per month.
What city has the lowest car insurance rates in California?
Mount Shasta has the lowest car insurance rates, averaging $126 per month.
How does a traffic violation affect auto insurance premiums?
Traffic violations can significantly increase insurance rates. For example, rates can rise to $476 for a DUI and $452 for reckless driving.
Are there affordable insurance options for low-income residents in California?
Yes, California has a Low Cost Auto Insurance program available for qualified individuals and families with specific income limits.
Key Features of California Auto Insurance Rates
| Provider | Liability Coverage | Full Coverage |
|---|---|---|
| CSAA | $26 | $112 |
| USAA | $43 | |
| Progressive | $49 | |
| AAA NorCal | $50 | $81 |
| Wawanesa | $51 | |
| Capital Insurance Group | $119 | |
| National General | $121 | |
| State National | $123 |
Average Car Insurance Rates by Violations
| Violation | Average Rate |
|---|---|
| No violation | $183 |
| Not-at-fault accident | $183 |
| Seatbelt violation | $247 |
| Speeding (6-10 MPH over) | $260 |
| Speeding (21-25 MPH over) | $260 |
| DUI | $476 |
| Reckless driving | $452 |
| Driving with a suspended license | $371 |
| Leaving the scene of an accident | $459 |
Deeper Dive: News & Info About This Topic
- KEYT News
- Wikipedia: Car insurance
- Santa Fe New Mexican
- Google Search: Car Insurance California
- NBC Bay Area
- Google Scholar: Car Insurance California 2025
- Axios San Francisco
- Encyclopedia Britannica: Auto Insurance
- SFGate
- Google News: California Car Insurance Rates
Author: STAFF HERE SAN DIEGO WRITER
SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
