When looking for an auto insurance policy, you should be aware of how insurance companies price their premiums for California drivers.  By law, insurance companies who write policies in California must weigh your driving record, driving experience, and annual mileage driven as the main factors in determining your rates.* Carriers are not allowed to primarily base their premiums on any other demographic components that are not backed up by causative data (like ZIP codes, for example).

Tips for Saving Money on Auto Insurance
That said, there are certain ways to get discounts on your auto insurance rate in California. These include driving a car with safety features like air bags, anti-lock brakes, or theft-proof devices. Other discounts are applied if you take a driver’s education course. Don’t be afraid to ask a prospective insurer what discounts may be available for you.

So before you purchase auto insurance in California, here are some steps you should consider if you want to save some money:

Adopt measures to minimize the number of miles you drive each year. This may mean carpooling, taking public transportation, or opting to rent a car on vacations or long road trips.

If you have an outstanding traffic violation and you have the means to have it wiped off your record, complete that process before signing up for insurance.
If you don’t have many years of driving experience, consider adding your name to the policy of a member of your household who is more experienced.
Look into policies with higher deductibles.

You must maintain proof of auto insurance if you want to drive in California. But if you know how the industry works, you can secure the proper coverage without busting your budget.