Average Cost of Car Insurance in California

California implemented significant changes to auto insurance minimum liability limits in January 2025 due to Senate Bill 1107, known as the Protect California Drivers Act. The new requirements increased from 15/30/5 to 30/60/15, meaning coverage jumped from $15,000 per person to $30,000 per person, from $30,000 per accident to $60,000 per accident and from $5,000 to $15,000 for property damage. For drivers carrying minimum coverage, rates could rise by as much as 54%, with the average annual cost expected to rise from $670 to more than $1,000.

California topped the list for the highest number of car thefts by volume in 2023, with 208,668 cars stolen --- about twice as many as Texas, the second-highest state. The Los Angeles-Long Beach-Anaheim metro area had the highest number of car thefts in 2023, followed by the San Francisco-Oakland-Berkeley metro area. Despite national improvements, California remains the state with the most cars stolen in 2024. Higher theft rates in major metropolitan areas contribute to increased comprehensive coverage costs across the state.

California had over 8,000 wildfires in 2024, which burned 1.1 million acres of land. In 2024 alone, California's Department of Insurance protected nearly one million policyholders under wildfire-related insurance moratoriums, including 750,000 in Southern California and 185,000 in Central and Northern California. The state's susceptibility to wildfires creates ongoing risk for comprehensive coverage claims, prompting insurers to adjust rates accordingly to account for potential car damage from fires, smoke and related evacuation scenarios.

California has around 27.65 million licensed drivers, with approximately 4.7 million uninsured motorists, which could grow as rates rise and affordability declines. California already has a higher than normal amount of uninsured drivers at 17% and this rate hike could cause that number to rise even more. The large uninsured population increases costs for covered drivers through higher uninsured motorist coverage needs and claim frequency.

California's infamous road congestion plays a key role in increasing premiums. More cars on the road lead to a higher risk of accidents, which in turn raises the number of claims that insurance companies must cover. Accident frequency and severity have both risen over the last few years, largely due to distracted driving, longer commutes and increasing car speeds. The state's large population and dense urban areas create elevated collision risks, particularly in metropolitan regions.

In 2023, car maintenance and repair costs rose by 6.5%, driven partly by inflation. Another factor that may have influenced rate increases is advancements in car technology, such as sensors or Advanced Driver Assistance Systems. While elevated safety technology may be beneficial for drivers and their passengers, these advancements have also caused an increase in repair costs. California's tech-forward market means more cars equipped with expensive-to-repair advanced safety systems.

The state also has strict regulatory practices around auto insurance, with companies required to seek approval from the California Department of Insurance before making changes to their rates. This has kept premiums somewhat controlled over the years, but with several factors aligning --- ranging from inflation to legislative updates --- drivers are now bracing for a California car insurance increase in 2025. California, Utah, Virginia and North Carolina recently increased minimum coverage limits, which could drive up liability-only insurance premiums and full-coverage costs in those states in 2025.