California, August 19, 2025
News Summary
Residents in California are struggling with high auto insurance rates, with significant variations across the state. Research from Way.com highlights that CSAA is the leader in affordable liability coverage at $26 per month, while full coverage rates are higher, reaching $81 for AAA. Mount Shasta is the cheapest city for auto insurance, averaging $126, while Beverly Hills is the most expensive at $269. Traffic violations also impact rates, and future tariffs may cause premiums to rise further. Experts urge consumers to compare policies for better savings.
California’s residents continue to grapple with high auto insurance rates, despite the presence of some cost-effective providers. Research conducted by Way.com has revealed crucial data on car insurance premiums across various ZIP codes within the state, highlighting differences in costs based on coverage types, cities, and traffic violations.
CSAA leads as the most affordable provider for liability coverage in California, offering plans starting at $26 per month. Following closely, USAA provides a competitive rate of $43 per month, while Progressive ranks third at $49 per month. The AAA NorCal offers liability insurance at an average of $50 per month, and Wawanesa rounds out the top five with a monthly premium of $51.
For those seeking full coverage insurance, prices tend to rise, with AAA offering the lowest rate at $81 per month. Other providers such as CSAA, Capital Insurance Group, and National General provide full coverage options priced at $112, $119, and $121 per month, respectively.
When assessing affordability on a city-by-city basis, Mount Shasta stands out as the cheapest location for car insurance in California, averaging $126 per month. Other cities with similarly low premiums include Weed and Yreka at $128, Montague at $131, and Dunsmuir at $132. On the opposite end of the spectrum, Beverly Hills is the most expensive city for auto insurance, with an average monthly premium of $269, followed by Glendale at $266, and Tarzana at $264.
Beyond geographical differences, traffic violations can significantly impact auto insurance rates in California. For example, drivers with a clean record pay an average of $183 per month, while those with a seatbelt violation see their premiums rise to $247. More severe violations can lead to much higher premiums: $476 for a DUI, $452 for reckless driving, and $371 for driving with a suspended license.
In addition to these factors, future tariffs on imported auto parts are predicted to increase auto insurance rates in California by as much as 7% in the latter half of 2025. The average annual premium for auto insurance in the state is around $1,910. However, qualifying individuals might access California’s Low Cost Auto Insurance program, which offers premiums as low as $450 per year. This program is aimed at residents with good driving records and income limits of $39,125 for individuals and $80,375 for families of four.
In light of the variations in auto insurance rates, experts recommend that consumers dedicate time to comparing different policies to find the best savings and ensure they accurately assess their options. This proactive approach can help individuals tailor their car insurance selections to better fit their financial and personal needs.
Frequently Asked Questions
What is the average cost of auto insurance in California?
The average annual auto insurance premium in California is approximately $1,910.
Which provider offers the cheapest liability insurance in California?
CSAA offers the cheapest liability coverage at $26 per month.
What factors can affect my car insurance rates?
Traffic violations, the city where you live, and the type of coverage you choose can all impact your auto insurance rates.
How can I qualify for California’s Low Cost Auto Insurance program?
Eligibility requires a good driving record and income limits of $39,125 for individuals and $80,375 for families of four.
What is the most expensive city for car insurance in California?
Beverly Hills holds the title for the most expensive auto insurance, with an average rate of $269 per month.
Overview of Auto Insurance Costs in California
| Provider | Liability Coverage Cost (Per Month) | Full Coverage Cost (Per Month) |
|---|---|---|
| CSAA | $26 | $112 |
| USAA | $43 | N/A |
| Progressive | $49 | N/A |
| AAA NorCal | $50 | $81 |
| Wawanesa | $51 | N/A |
| Capital Insurance Group | N/A | $119 |
| National General | N/A | $121 |
| State National | N/A | $123 |
Deeper Dive: News & Info About This Topic
- KEYT: Car Insurance Rates in California – August 2025
- Santa Fe New Mexican: Car Insurance Rates in California – August 2025
- NBC Bay Area: Car Insurance Premium Going Up
- Axios: Car Insurance Rates California – Tariffs 2025
- SFGATE: Why California Car Insurance Rates Climb – 2025
- Wikipedia: Car Insurance
- Google Search: Car Insurance California
- Encyclopedia Britannica: Insurance
- Google Scholar: Car Insurance California
- Google News: Car Insurance California
Author: STAFF HERE HUNTINGTON BEACH
The Huntington Beach Staff Writer represents the experienced team at HEREHuntingtonBeach.com, your go-to source for actionable local news and information in Huntington Beach, Orange 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 the Huntington Beach Surf City USA Marathon, the U.S. Open of Surfing, Fourth of July celebrations at the Huntington Beach Pier, and community festivals at Huntington Beach Central Park. Our coverage extends to key organizations like the Huntington Beach Chamber of Commerce and Visit Huntington Beach, plus leading businesses in retail, hospitality, and outdoor recreation that drive the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
