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Despite a national trend of declining car insurance premiums, California drivers are experiencing the third-highest rate increase in the country.
According to a new national report, insurance premiums in California are rising by 6.13 percent, a significant decrease from last year's 16 percent hike, but still much higher than the national average increase of 0.67 percent.
Rob Bhatt, an insurance agent, explained that the increase is challenging for many Californians. "These price increases are tough, you know, unless your salary went up by 6% or is going to go, if you're going to get a 6% raise this year, then you'll kind of break even on insurance," Bhatt said.
The average monthly cost of auto insurance in California is expected to reach $221 in 2026. However, rates vary significantly across the state. Drivers in Northern California are expected to have the lowest premiums, more than 24 percent below the state average, while those in Southern California may see rates 57 percent above the average.
Despite the rising costs, experts suggest that drivers can still find ways to save. Bhatt recommends shopping around for quotes and considering options like increasing deductibles or taking advantage of discounts for low mileage. "A big thing to do is shop around for quotes, try and find a better deal. It takes a little bit of leg work, but oftentimes the savings can be substantial," Bhatt advised.
While California drivers face these challenges, the state with the highest insurance rate is Nevada, at $335 a month, and Vermont has the lowest rate at $128 a month, according to Patch.com.