California, August 19, 2025
News Summary
Recent research highlights the most affordable auto insurance providers in California, revealing significant savings for drivers. CSAA tops the list for liability coverage at $26 per month, while AAA offers the lowest full coverage at $81. Cities like Mount Shasta provide cheaper premiums, while Beverly Hills sees the highest rates. The impact of traffic violations on premiums is also significant, with DUIs causing spikes up to $476 monthly. Consumers are encouraged to explore options such as the Low Cost Auto Insurance program for potential savings.
California’s auto insurance market offers a wide range of rates and policies, presenting opportunities for drivers to save significantly based on their choices. Recent research conducted by Way.com has unveiled the most affordable auto insurance providers and the impact of driving violations on insurance rates across the state.
The cheapest auto insurance option for liability coverage in California is offered by CSAA at an average rate of $26 per month. Following closely is USAA, with a monthly premium of $43, and Progressive, which charges $49 for similar coverage. AAA NorCal provides liability insurance at $50 per month, while Wawanesa rounds out the top five with a rate of $51 per month.
When it comes to full coverage auto insurance, AAA claims the title for the lowest price at $81 per month, while CSAA offers full coverage at $112. Capital Insurance Group’s premiums are slightly higher at $119, followed by National General at $121 and State National at $123.
Certain cities in California are more favorable for drivers seeking lower premiums. Mount Shasta stands out with an average car insurance rate of $126 per month, making it the cheapest city for auto coverage. Other cities with low rates include Weed and Yreka at $128 each, Montague at $131, and Dunsmuir at $132 on average.
In contrast, the most expensive average premiums are seen in Beverly Hills, where the average rate is a staggering $269. Glendale follows closely at $266 and Tarzana at $264.
Traffic violations can have a significant impact on auto insurance premiums in California. For instance, the average monthly premium for drivers with no violation stands at $183. After a moderate violation, like a seatbelt infraction, the average jumps to $247, while speeding violations can result in premiums as high as $260. Serious violations such as a DUI lead to an average premium of $476, and reckless driving incurs an average of $452.
The overall landscape of California’s auto insurance continues to be affected by external factors. For example, it is projected that tariffs on imported parts could raise insurance rates by up to 7% by late 2025. Despite these rising costs, the average annual auto insurance premium in California currently sits at approximately $1,910. Notably, some individuals may be eligible for California’s Low Cost Auto Insurance program, which can lower their costs to around $450 per year, dependent on specific eligibility criteria such as good driving records and income limits.
Eligible individuals for this program must have an income no greater than $39,125 for individuals or $80,375 for families of four. Importantly, consumers are urged to shop around and compare different auto insurance policies to identify the best deals available in the market.
FAQs
What is the cheapest auto insurance company in California?
CSAA offers the cheapest liability coverage at $26 per month.
Which city has the lowest average car insurance rates in California?
Mount Shasta has the lowest average car insurance rate at $126 per month.
How do traffic violations impact insurance rates?
Traffic violations can significantly increase your insurance premiums, with rates for serious offenses like DUIs reaching up to $476 monthly.
What is the California Low Cost Auto Insurance program?
This program offers lower premiums for eligible individuals, with costs potentially as low as $450 per year based on income levels and good driving records.
Auto Insurance Rate Overview
| Provider | Liability Coverage Rate | Full Coverage Rate |
|---|---|---|
| CSAA | $26 | $112 |
| USAA | $43 | Not listed |
| Progressive | $49 | $119 |
| AAA NorCal | $50 | $81 |
| Wawanesa | $51 | Not listed |
| Capital Insurance Group | Not listed | $119 |
| National General | Not listed | $121 |
| State National | Not listed | $123 |
Deeper Dive: News & Info About This Topic
- KEYT News: 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 in California and Tariffs – 2025
- SFGate: Why California Car Insurance Rates Climb – 2025
- Wikipedia: Car Insurance
- Google Search: California Car Insurance 2025
- Google Scholar: California Car Insurance Rates
- Encyclopedia Britannica: Auto Insurance
- Google News: California Car Insurance
Author: STAFF HERE BEVERLY HILLS WRITER
The Beverly Hills Staff Writer represents the experienced team at HEREBeverlyHills.com, your go-to source for actionable local news and information in Beverly Hills, Los Angeles 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 Rodeo Drive Concours d'Elegance, the Beverly Hills artSHOW, Concerts on Canon, and holiday celebrations throughout the city. Our coverage extends to key organizations like the Beverly Hills Chamber of Commerce and Visit Beverly Hills, plus leading businesses in luxury fashion, hospitality, and entertainment that drive the local economy. As part of the broader HERE network, including HERELosAngeles.com, HERESantaAna.com, HEREHuntingtonBeach.com, and HERECostaMesa.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
