A MoneyGeek analysis of the costs of car insurance in California show an average cost of $1,343 annually, while nationwide average is $1,244.
California insurance rates have a wide range given different factors. Drivers with a previous speeding ticket will spend $1,944 per year for full coverage, those with an accident on record will spend $2,205 per year for full coverage, and previous DUI charges will increase the average cost to $3,375 per year for full coverage.
Providers also vary in price, with AAA California offering full coverage plans for $1,001 per year, and Chub offering full coverage plans for $1,868 per year.
A report from the National Association of Mutual Insurance Companies (NAMIC) found that legal system abuse is making insurance coverage more expensive for all policyholders. Practices such as third-party litigation funding are contributing to a larger volume of lawsuits, which forces businesses to raise their prices, effectively passing litigation costs onto consumers.
Rising insurance costs due to excessive litigation are particularly impacting low-income Californians, who are already grappling with high inflation, the Northern California Record reported. Car insurance costs increased by 24% last year and are projected to rise another 7% in 2024. Due to these rising costs, low-income California families are struggling to afford basic expenses.