The Average Monthly Car Insurance Costs in California eHow

By Cynthia Hartman, eHow Contributor

Car insurance can be a significant part of the cost of owning a vehicle, and it is against the law to drive a car in California without it. There are many factors that help establish the cost of your insurance policy, and some are within your control while others are not. It is helpful for California drivers to know what the average insurance costs are for their particular state, as well as the factors that can help lower their insurance costs. Drivers can also take advantage of some changes that have taken place in the average insurance rates in California since 2008.

1. • The state in which you reside is an important factor in determining insurance rates. Each state sets its own laws to regulate its insurance, and rates can vary substantially between states. Iowa and Ohio are the two least expensive states in the nation for insurance, with the insurance cost for 2010 in Iowa at just over $1,000 per year. In comparison, California's 2010 average insurance rate was $1,286, while the 2010 national average rate for insurance was $1,539.

     Another determinant is the age of the driver. The most accident-prone age groups are those aged 16 to 24 and 75 and older, and the safest drivers are those between ages 25 and 64. Marriage increases drivers' safety and statistically, married men driving between ages 18 and 24 have a much lower accident rate than single men in the same age group. This causes insurers to see these safer demographic groups as less risky, which is reflected in their lower insurance rates.

   • Insurance companies use statistical methods to calculate the odds of you having an accident, and if you already have an accident on your record the odds are you will be involved in another, which can increase the cost for your auto insurance. Additional marks on your driving record such as traffic tickets or other moving violations also will increase your insurance costs.

     Although using credit history can be controversial, insurance companies are starting to look at this as well since historical data has shown that having a poor credit record makes you a greater insurance risk statistically. Depending on what car you drive, insurance costs can also be more expensive. If you drive a luxury vehicle, for example, the cost of insurance may be almost three times as much as cars that have the lowest cost of insurance, such as Mazda's Tribute SUV, which is the least expensive car to insure, according to Insure.com's 2011 survey of cheap car insurance.

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• Insurance costs in the state of California used to vary by zip code as well, with differences being due to the higher likelihood of an accident in a high-traffic city or the chances of your car being stolen in a higher crime area. However, 18 years after it was proposed, Proposition 103 was passed in 2006. Proposition 103 requires California auto insurers to price car insurance based strictly on your driving record, rather than whether you live in a high-risk zip code. California insurance companies had two years to enact the changes, and as of July 14, 2008, California has been pricing premiums based only on consumers' driving records, mileage driven and years of driving experience.

• Average insurance rates in the state of California have gone down in the last few years, from $1,650 in 2009 and $1,286 in 2010 to $1,143 in 2011, according to CarInsurance.com's report on average insurance premiums. This puts California close to the national average cost for car insurance, which is $1,441 for 2011, and makes the monthly average insurance premium for California drivers $95.25, based on the 2011 annual cost divided by 12 months. This reduction is due in part to the efforts of California's Insurance Commissioner, Steve Poisner, who worked during his tenure with Farmer's Insurance and other insurers to make the overall insurance market more competitive and efficient.