Drivers in Sacramento, California, often experience higher insurance premium rates than drivers in other states, but there are still many ways to find cheap car insurance for your vehicle. Having insurance is required by California law and is useful to have to cover any damages incurred from accidents. Understanding what you might pay with different insurance providers can help you find the provider that works best for your coverage requirements and budget. Here’s a comprehensive guide to cheap car insurance in Sacramento.
Minimum Insurance Coverage in Sacramento, California
Car insurance is required for all vehicles operated or parked on California roads, including those in Sacramento. There are several types of insurance you can have including a motor vehicle liability insurance policy, a cash deposit of $35,000 with the Department of Motor Vehicles (DMV), a DMV-issued self-insurance certificate, or a surety bond for $35,000 from a company licensed to conduct business in California. If you opt for a liability insurance policy, there are certain insurance requirements to consider for private passenger vehicles. According to the State of California DMV, here are the minimum liability insurance requirements for Sacramento, California:
- $15,000 for injury or death to one person
- $30,000 for injury or death to more than one person
- $5,000 for damage to property
If you are unable to pay for minimum liability insurance, the DMV may suspend the vehicle’s registration. Another option is the California Low Cost Automobile Insurance Program, which is a low-cost insurance option for qualifying drivers. Some items you might need to prove your insurance coverage include an identification card from your insurance company, a DMV authorization letter, a California Proof of Insurance Certificate, evidence that the vehicle is owned or operated by a public entity, Notification of Alternative Forms of Financial Responsibility form, or a Statement of Facts certification.
Cheap Car Insurance in Sacramento
In Sacramento, the average driver pays $808 annually for minimum liability coverage. For a full coverage policy, Sacramento drivers can expect to pay an average rate of $2,236 annually. This rate is higher than the national and state average due to the increased number of traffic stops and accidents compared to the rest of California. Insurance rates can vary based on your personal driving history, age, policy, and vehicle information.
Additionally, if you finance your vehicle through a lease or loan, the state might require you have a certain level of insurance coverage. This can affect the premium rate you pay as the state often requires drivers to have full liability insurance on these types of vehicles. Once you satisfy your loan or lease requirements, you can opt for minimum liability coverage which is often less than full coverage premiums.
Sacramento Car Insurance Rates
Sacramento offers insurance coverage with many large and small insurance companies, which can help you find the provider that works best for you. Insurance rates can vary based on your banking institution, driving record, credit score, vehicle make and model, and what policy coverage you want. If you want to find cheap car insurance in Sacramento, you can expect to pay premiums from the following national providers:
- GEICO: $537 annually/$45 monthly
- Grange: $549 annually/$46 monthly
- AAA: $582 annually/$49 monthly
- Wawanesa: $666 annually/$56 monthly
- Progressive: $705 annually/$59 monthly
- Mercury: $706 annually/$59 monthly
- State Farm: $725 annually/$60 monthly
Certain insurance providers also offer unique services with their insurance packages. For example, AAA also offers roadside assistance features. When comparing providers it’s important to understand what their minimum coverage policy covers in case of an accident or other damage. This can help you fully compare policies and find the right option for you. Exploring customer service reviews can also help you understand more about working with different insurance providers in the area.
Influencing Factors That Can Affect Your Insurance Rates
Companies consider a variety of factors when providing insurance quotes and offering insurance policies. Understanding more about these influencing factors can help you take steps to help you reduce your premium and find the company that works best for you and your vehicle. Having what insurance companies consider a high-risk profile might cause an increase in your insurance premiums. Some drivers who might qualify as high risk include those with a history of speeding tickets, traffic violations, DUI, or an accident on record.
In addition to driving history, another influencing factor is age. Teenage or senior drivers might experience a higher premium due to the number of accidents people of those age groups experience. Drivers between 30 and 60 years of age can expect a lower premium rate than drivers in other age groups.
Methods To Reduce Your Insurance Premiums
There are several ways to help you reduce your annual premiums with your insurance provider. This can help you budget for your insurance payments and avoid any vehicle registration suspensions resulting from non-payment. Here are some tips and methods to consider to help you reduce your annual insurance premiums:
- Maintain a safe driving record: Maintaining a safe driving record can help insurance companies understand your driving habits, which can result in a lower premium. This is because they consider safe drivers to be a lower risk to insure than drivers with a poorer driving record.
- Participate in a telematics program: Some companies offer a telematics program that tracks your driving habits and performance, which can help you reduce your overall insurance premium by being a safe driver. This works by downloading a tracking app or installing a plug-in device to your vehicle that tracks and analyzes your driving habits.
- Bundle your insurance policies: Insurance companies sometimes offer bundle discounts that allow you to combine your auto insurance with home, renters, or other types of insurance. This can result in a bundle discount that enables you to save on both insurance policies.
- Complete driving programs: Completing driving programs, like defensive driving or a mature driver improvement course, can help you reduce your annual insurance premiums because insurance companies consider those who’ve completed these courses as a lesser risk. If you decide to pursue a driving program, be sure you check with your insurance company because California law allows insurance companies to determine the percentage of premium reduction upon program completion.
Whether you opt for minimum liability or full coverage, researching your insurance options can help you find the best possible price for your vehicle. Now that you know more about Sacramento insurance options, you can make an informed decision about your insurance coverage.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.
