Auto Insurance Premiums in California: The Best 7 Top Cutting Tips

8 min readJan 6, 2022

Auto insurance is a must for every driver driving in California state. Of course, you will need this insurance to keep you and your loved ones while driving.

There are various types of auto insurance in California but whichever plan you choose to get, ensure your auto insurance premiums are affordable.

It is good to note that there are no specific amounts of premiums an insurance company requires you to pay but there are ranges. We have previously covered some of the factors that determine your auto insurance costs including age, your marital status, and your driving history among others.

With the current state of the economy, everyone in California and across the US is looking for a way to cut their auto insurance costs. It becomes even worse if you have heard a driving negligence history or you have been caught in the web of DUI.

We, therefore, thought it wise to do research and present to you some of the best tips you can use to cut down your auto insurance premiums in 2022. We hope this article will be quite helpful to you as a resident of California. By the way, you can apply the same tips if you are living in any other state in the US.

What is the Average Auto Insurance Premiums Yearly?

However, before we jump into this crucial topic, I want to let you know that auto insurance premiums are different for every driver in the US especially depending mostly on the insurance company of their choice, their insurance coverage, and the state they are in.

According to the report released by the National Association of Insurance Commissioners (NAIC) in 2018, an average driver paid approximately $1,190. The same report showed that auto insurance premiums rose by approximately 30% between 2014 and 2018.

Maybe you could be wondering, are the premiums going to reduce soon? Well, perhaps that can be answered better by the AAA report that was released in 2020. It showed that the average auto insurance premium is around $100 per month or $1,202 per year.

Now having seen that the premiums may never go back to the way they were a decade ago, it calls for sober reflection and coming up with some tips for having reduced premiums. Bear in mind that some state regulations in the US can be a big contributor to paying high premiums.

Tips to Having Lower Auto Insurance Premiums in California

1. Be a Safe Driver

California laws are very tough on reckless drivers on the road. The same culture has been adopted by the insurance companies in California when it comes to determining how much you will be paying for your premiums. You will be surprised to know that your driving history is well recorded and kept in the archives.

Most insurance companies will determine the amount of auto insurance premiums in California depending on your past driving history. Let’s assume you once drove under influence and ended up causing an accident, your auto insurance premium will be high almost triple compared to that one of a careful driver.

In our article on the factors that determine car insurance costs in California, we showed you how much you will be paying if you are caught driving under influence. The insurance companies will demand $4,689.59 annually from you as your premiums; that’s quite high.

So, the easiest way to lower your auto insurance premiums in California is simply to be a careful driver on the road. You will be paying around $1,200 per year if you are careful enough. If you are having more violations and reckless rides on the road, then you can be sure of hefty premiums. So, why not drive safely?

2. Search for Better Auto Insurance Rates

Hey, remember having better insurance rates does not mean driving recklessly on the road. No matter how great the deal is, if you are a careless driver with multiple violations, you will definitely have to dig deeper into your pocket for your insurance premiums.

The fact is, not all auto insurance companies in California charge the same amount of premiums; there are some that have lower rates than others. However, we usually advise car owners not to be attracted to low premium rates at the expense of their safety.

Check the insurance company that you want to have as your insurer. Don’t just stop at their attractive rates. Strike a good balance between a licensed and trustworthy insurance company with the best insurance rates. Beautifully, you can easily find such companies in California.

3. Enquire the insurance rates for different vehicles

Of course, it makes sense for an insured who owns a small car to pay less compared to a trailer owner. Some insurance companies in California base their auto insurance premiums on the size of the vehicle. If you own a large SUV, be sure you might end up paying more to the insurance company.

To discourage air pollution and encourage drivers to buy environmental-friendly vehicles, some great insurance companies usually provide discounts to car owners who own hybrid vehicles. That is a great step in making your environment safe and at the same time saving some cash on your insurance.

Bonus Tip: Did you know that most insurance companies will provide lower auto insurance premiums for vehicles that have low mileage/that travel less?

4. Keep Your Credit Ratings High

I was quite surprised to learn that auto insurance companies in California can determine your premiums based on your credit ratings. I mean, we all mind about our driving history and do not pay much attention to our credit history. But it is surprising that insurance companies are using it.

According to the Senior Vice President at Insurance Information Institute, Michael Barry, most insurance companies are using credit ratings to determine your insurance rate because they view if you are responsible for settling your personal credits, you are likely to be careful on the road and less likely to file some unnecessary claims.

Something like that coming from the mouth of such a senior person in the institute should be taken seriously because it could be true. Whether your insurance company will ask for credit ratings or not, just be on the safe side and keep your credit ratings clean.

5. Review your Auto Insurance Coverage

This is another tip that will ensure that you have low auto insurance premiums in California. Well, by reviewing your insurance coverage, you will determine which insurance costs need to be dropped and which need to be reinstated to keep your premiums low.

For example, if your car is really old and has depreciated in value, it is advisable that you drop comprehensive coverage for the car. I mean, instead of continuing to pay for a roadworthy vehicle, why not just drop some coverages which might end up being higher than the value of the car.

ALSO READ: How to Get Affordable Home Insurance in California 2022

Another coverage that you can eliminate if your car is really worn out is the collision costs. In determining which coverage to drop, you need to consider various factors including the state of your car, your driving history, the costs of the coverage, and such factors.

Check at the various hazards you are insuring your car against. Any that is irrelevant can be dropped. I usually advise that you consult with a professional before determining which coverage to drop. Of course, they will give you the necessary advice you need.

6. Have Constant Consultations With Your Insurance Agent

I consider this to be closely related to the above tip. As I mentioned, before you drop any coverage, talk with your insurance agent. Now, to have lower auto insurance premiums in California, you need to maintain constant communication with your agent.

It is very funny that most insured only talk to their insurers only when accidents happen. You will be surprised how much you are missing for not talking to them regularly. I mean make them your friend. That will give you an upper hand compared to other insured.

Since you have maintained a good rapport with your insurance agent, you will be the first person they will inform in case there are discounts. As you are relating with them, ask them questions. You will be surprised that there was a discount for your class of people that you have not been enjoying.

Most insurance companies in California and across the US usually treat military men and veterans with some respect. If you are military personnel ask whether there are some exceptions or discounts for your kind of insured. Who knows, you might end up getting a lifetime discount on your auto insurance premiums.

7. Make use of multi-car insurance discounts

I made this the last tip that will guarantee that you get super low auto insurance premiums in California, because not every insured will have more than one car. Nevertheless, this is a great tip for those residents of California that have multiple cars.

I have to mention that some insurance companies will give you a discount if you are insuring your home with them. I mean as long as you are giving them more business, not necessarily in auto insurance, you will be getting your discount. However, some are strict in offering their discounts.

If your brother, cousin, aunt, uncle, mom, or any relative has a vehicle, you can all decide to insure with a similar insurance company as long as you are residing in California. You will end up paying less for your auto insurance premiums because of bulk discounts.

The Bottom Line

Owning and maintaining your vehicle is likely to be costly in the next few decades. Consequently, the insurance costs are likely to increase but will you use the above tips to keep your insurance costs low and affordable? That’s why we wrote this article for you.

Of course, there are other tips including paying as-you-go and installing some antitheft systems but if only you can apply the above tips you will have low premiums. Always remember to capitalize on the multiple discounts that the insurance companies in California offer the insured.

If you have any questions regarding the above, don’t hesitate to let us know in the comment below and we will be glad to answer you. See you in our next article.

Originally published at https://thetrends.info on January 6, 2022.