There are many wonderful things about living in the state of California. But Americans who don’t live here have a perception that most things seem to cost more in the Golden State. While is true that prices are higher in some instances (for instance, on gasoline), the cost of living in California is lower than people may think.

Many people assume that it costs more to insure your car in California than most other states. But in fact, the opposite is true: California’s annual average auto insurance premium is $1,480, which is substantially lower than the national average of $1,793.

Still, auto insurance coverage can take a bite out of a household budget, primarily because it is required by California law for people who wish to drive in the state. Thankfully, there are ways to get lower auto insurance rates for California drivers.

The Minimum Requirement Laws in California

Like other states, California law dictates the minimum levels of insurance coverage for its drivers. Your policy must have at least $15,000 in coverage for injury for one person, $30,000 in coverage for injuries in a single accident, and $5,000 for property damage per accident – which, by the way, are among the lowest required minimums in the nation. So you can certainly reduce your monthly payment to an auto insurance company by keeping your levels at a minimum (although, there’s no telling what that might cost you should an accident occur).

Also, be aware that drivers in California are not required to purchase uninsured or underinsured motorist insurance like they are in some states (though it may be a good idea to do so).

Finally, it’s important to keep in mind that California is a “tort” state, meaning that the party responsible for an accident is the one who must pay all damages, medical expenses, and other related costs of those victimized in the crash.