The average annual cost of car insurance in California is $150, higher than the national average of $143. Fortunately, drivers can lower their rates by seeking out discounts. When you take risk-mitigating efforts or save your insurer money, those savings pass onto you.
Many of the same discounts are available to drivers nationwide, but some apply specifically to California drivers. For example, companies may partner with California-based affiliation groups to offer drivers discount opportunities.
Here’s what you need to know about car insurance discounts in California.
Golden State drivers usually see higher rates on their car insurance policies. Discounts can help manage your costs. Some ways to access these savings include being in a professional association, being a university alum, or working a specific job.
California members of certain professional organizations may qualify for exclusive savings. Some of these organizations include:1
California Association for the Education of Young Children: Enrolled professionals in early childhood education can get a discount through GEICO.
American Bar Association (ABA): ABA members can access special savings through Travelers.
California Medical Association: Medical professionals in this organization can save up to 8.2% with Mercury.
AARP: AARP members 50 years or older qualify for a discount through The Hartford, saving an average of $577 per year on their car insurance policies.
Car insurance companies also pass bargains to California university students and alums. Some participating institutions include:2
University of California, Berkeley: Berkley alums can save on car insurance through Farmers.
Stanford University: Stanford graduates can enjoy discounted rates through Farmers.
University of Southern California (USC): USC offers savings to alums through the Association Member Benefits Advisors (AMBA).
AAA-affiliated alums: If you attend a four-year college or are a university alum in California, AAA may reward you with a 7.4% discount.
Insurance companies may see some occupations as “low-risk” based on typical driving behaviors or lifestyle habits. Examples include scientists, teachers, artists, and engineers. If you work in one of these jobs, you may get a discount on your car insurance policy. Insurers also offer savings as a token of appreciation to civic servants.
Here are a few examples of companies that do:
GEICO: Federal employees ranked GS-7 or above qualify for the Eagle discount, and military-affiliated members can also earn reduced rates through GEICO.
AAA: Professionals in specific industries, such as engineering, healthcare, and education, can save up to 7.4% on their car insurance policies.
California Casualty: This California-based car insurance company provides special benefits and discounted rates to firefighters, educators, law enforcement, and medical professionals
Car insurance companies offer a wide variety of discounts to drivers nationwide. For example, most drivers need multiple insurance products, so you’ll commonly see a multi-policy discount. While you’re in the insurance-buying process, it’s important to ask an agent about what you qualify for because some discounts may not be advertised.
Your insurance company may grant discounts for low-risk behaviors. For example, if you have a clean driving record, your insurer may apply a safe driver discount to your insurance policy. These can even apply to “off-road behaviors.” For instance, students can get a discount for getting good grades in school.
The table below shows common discounts, who’s eligible, and the potential savings.
Insurers offer discounts based on your car’s features. For example, if your car has a security or safety feature (think airbags or car alarms), you probably qualify for a discount.
The table below shows common vehicle-specific discounts, who qualifies, and how much you’ll save.
Insurance companies offer miscellaneous discounts that don’t consider your car or driving behavior. Some of these have to do with the way you buy, manage, or pay your policy. Participating and enrolling in a company’s telematics program can also earn significant savings.
The table below lists policy and insurer-specific discounts, who qualifies, and how much you’ll save.
California car insurance costs $150 per month, higher than the national average. It’s also more expensive than in neighboring states, like Arizona and Oregon, but less expensive than Nevada.
Rising costs will continue in 2025 due to the raised minimum limits effective Jan. 1, 2025. But the good news is you can still find cheap car insurance by shopping around. The table below shows affordable rates from popular car insurers in California.
You don’t always have to sacrifice coverage to get affordable rates. Here are some ways you can save on your policy:
California drivers must carry at least the state-mandated minimum coverage. This includes coverage for the other driver’s property damage and medical expenses in an accident you cause. The minimum required car insurance is as follows:3
Bodily injury liability: $30,000 per person, $60,000 per accident
Property damage liability: $15,000 per accident
Minimum coverage protects the other driver if you cause an accident. But if you can afford to, getting a more robust policy is a good idea to protect yourself. Common additions include collision and comprehensive insurance, medical payments coverage, and uninsured/underinsured motorist coverage.
Discounts can make a major difference in your premium. Here are the answers to some common questions to help you find the best rates.
Anchor offers the cheapest full-coverage rates in California, at $181 per month. The most affordable insurer for you varies based on your location, age, driving history, and other factors.
The average cost of car insurance in California is $150 per month. Your quote will depend on factors such as your car insurance company, coverage choices, and applicable discounts.
As of Jan. 1, 2025, the minimum-required coverage in California is $30,000 per person in bodily injury liability, $60,000 per accident in bodily injury liability, and $15,000 per accident in property damage liability.3
You can lower your car insurance rates in California by having a clean driving record, adjusting your coverages, and comparison shopping. Another effective way to save money is by looking for discounts on your insurer’s website or asking an agent about what you qualify for.
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