The cheapest car insurance policy for you depends on your profile and needs. GEICO offers the cheapest full coverage insurance and is the most affordable for teens, seniors, young adults and those with sports cars. USAA is the least expensive for military policyholders, CSAA for at-fault accident drivers and National General for drivers with speeding violations and DUIs.
Cheapest Car Insurance in San Jose, CA
Cheapest Minimum Coverage Car Insurance in San Jose
The following companies offer the cheapest minimum coverage policies in San Jose:
- GEICO: $339 per year
- CSAA: $427 per year
At a yearly premium of $731, Chubb charges the highest minimum coverage auto insurance premiums.
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According to California law, a minimum coverage insurance policy must provide liability insurance for bodily injury and property damage with the following limits:
- $15,000 bodily injury liability per person
- $30,000 bodily injury liability per accident
- $5,000 property damage liability per accident
These limits mean that your auto insurance provider will cover up to $15,000 per harmed individual, up to a maximum of $30,000 per accident. Any costs exceeding $30,000 are the policyholder’s responsibility.
Cheapest Full Coverage Car Insurance in San Jose
The following auto insurance providers offer San Jose drivers the least expensive full coverage policies:
- GEICO: $934 per year
- National General: $1,033 per year
San Jose’s most expensive full coverage auto insurance policy comes from Chubb, costing $1,760 per year.
A full coverage insurance policy includes collision and comprehensive insurance.
- Collision insurance: Pays to repair or replace your car if you hit another vehicle or stationary object, such as a tree, fence or light pole. Collision also covers rollover accidents.
- Comprehensive insurance: Covers non-collision incidents like theft, animal damage, fire, vandalism, severe weather events and natural disasters (e.g., wildfires and earthquakes).
Full coverage insurance may not be necessary for an older vehicle, especially if it is in bad condition and has low value.
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Cheaper insurers could pocket you hundreds of dollars per year.
Cheapest Car Insurance in San Jose After a Driving Offense
The following auto insurance companies in San Jose offer the lowest rates after different driving violations:
- Speeding ticket: National General ($1,084 per year)
- At-fault accident: CSAA ($1,493 per year)
- DUI: National General ($1,084 per year)
Chubb is the most expensive after an at-fault accident at $2,833 per year, Nationwide after a speeding ticket at $2,367, and Hartford after a DUI at $5,119. Drivers with violations on their records will pay more for car insurance, even from the cheapest providers.
Typically, the severity of the offense determines how much the premium will increase. For instance, San Jose drivers will pay an average of $533 more per year after a speeding ticket and $1,806 after a DUI. If you need affordable car insurance and have a bad driving record, shop around and compare rates.
If you're new to California, you may have had auto insurance in your previous state where you could add accident forgiveness to your policy or earn it for maintaining a motor vehicle record clear of moving violations. Or, while researching auto insurance, you may have come across a mention of this optional coverage and thought it's a good coverage to have just in case you get into an at-fault accident since it stops your premium from going up. Unfortunately, California law prohibits auto insurers from offering accident forgiveness. If you get into an at-fault accident, it is very likely that you will see your policy cost rise.
It's also good to know that California prohibits the use of telematics in auto insurance pricing. These programs monitor your driving behavior, such as when you drive, your rate of speed and whether you break hard or accelerate quickly, to influence how much you pay for auto insurance. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
Cheapest Car Insurance in San Jose for Teens and Their Families
The following companies offer the cheapest rates in San Jose for families adding a teen to their policies:
- GEICO: $2,072 per year for female teens; $2,165 per year for male teens
- State Farm: $2,291 per year for male and female teens
At $4,482 annually, Nationwide has the highest premium for male and female teenagers on a family policy.
In most states, teen males often pay higher rates than teen females since they are considered riskier to insure, and the gender cost difference evens out in early adulthood. But in California, insurance companies cannot consider gender when pricing auto insurance policies, so being a male teen does not automatically mean you will pay more for auto insurance than a female teen, but other rating factors may make the cost differ.
Adding a teen to a family policy is more cost-effective than buying them separate insurance, and in most cases, a teen under 18 must have a parent or guardian as a co-signer to get insurance legally. For instance, adding a 16-year-old teen to a family policy in San Jose costs $673 less than purchasing a different policy for them. You can save hundreds each year by finding the cheapest auto insurance for your teen driver.
It isn't just teens that benefit from California not allowing gender as a rating factor when pricing car insurance. Whether you are in your 20s, 30s, 40s or beyond, the gender you identify as won't influence how much you pay to insure your car in San Jose. Plus, California does not allow other rating factors that are common elsewhere, such as credit history, level of education and occupation. But, your motor vehicle record, how many years of experience you have, how much you drive and the type of vehicle you drive will significantly influence your premium. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
Cheapest Car Insurance in San Jose for Military Drivers
The cheapest full coverage auto insurance companies for military service personnel, veterans and their families in San Jose are:
- USAA: $877 per year
- GEICO: $934 per year
GEICO is the cheapest option for minimum coverage at $339 per year, followed by USAA at $380.
How to Compare Cheap San Jose Car Insurance Quotes Online
In San Jose, obtaining an online auto insurance quote can take 15 minutes or longer and requires you to enter a lot of personal data. The MoneyGeek auto insurance calculator can give you a quick estimate when you just enter your age, the level of coverage you require, the vehicle type and your driving history.
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Cheapest Car Insurance in San Jose for Young Adults
Young adults in San Jose can find the most affordable full coverage car insurance from the following companies:
- GEICO: $1,074 per year
- Allstate: $1,225 per year
Chubb offers young adults the most expensive coverage in the city at $2,588 a year.
In San Jose, drivers under 25 pay an average of $316 more for car insurance than middle-aged adults. Drivers in their 20s lack experience, making them more likely to be in accidents than drivers in their 40s. To find the cheapest car insurance for young adult drivers, compare quotes.
Cheapest Car Insurance in San Jose for Seniors
The following companies offer seniors the lowest full coverage auto insurance in San Jose:
- State Farm: $888 per year
- GEICO: $902 per year
With a yearly premium of $1,816, Chubb offers the most expensive auto insurance for seniors. Compared to drivers in their 40s, MoneyGeek found seniors in their 60s in San Jose pay $34 less on average for auto insurance — it's more common for seniors to pay more, though.
In their 70s and 80s, premiums increase because older drivers are more likely to be in accidents. Shop around and compare quotes to find the cheapest car insurance for senior drivers.
Cheapest Car Insurance in San Jose for Sports Cars
If you own a sports car in San Jose, these companies offer the best rates on full coverage auto insurance:
- GEICO: $1,186 per year
- Progressive: $1,232 per year
Chubb, at $2,095 yearly, is the most expensive car insurer in San Jose for customers who drive sports cars.
Sports car insurance prices are higher in San Jose. For example, a Ford Mustang driver will pay $207 more per year than a Toyota Camry driver. Those looking for cheap sports car auto insurance should compare quotes to get the best deals.
MoneyGeek used a Ford Mustang as its sample sports car, but insurance costs can vary depending on the car’s make and model. In addition, insurance premiums for luxury, electric and sports automobiles are generally higher than average.
Average Cost of Car Insurance in San Jose
The average cost of car insurance in San Jose is $1,290 per year. This amount is $25 more than the $1,265 national cost of car insurance and $97 less than the $1,387 average cost of auto insurance in California. San Jose’s average auto insurance rate is cheaper than Fremont's ($1,296 per year) but more expensive than Santa Clara’s ($1,289 per year) and Sunnyvale's ($1,279 per year). Location is one of several factors affecting car insurance rates.
The prices listed above are for full coverage auto insurance policies with $100,000 bodily injury liability per person, $300,000 in bodily injury liability per accident and $100,000 in property damage liability per accident.
About Mark Fitzpatrick