California regulates auto insurance more closely than most states, and those rules shape what you pay, what insurers can look at, and which drivers they take on. Knowing how the system works makes it easier to judge a quote, especially if your record isn't spotless.
How California sets the rules
Since Proposition 103 passed in 1988, insurers in California need the Insurance Commissioner's approval before they change their rates. The law also sets out what matters most in pricing a policy. The three mandatory rating factors, in order of importance, are:
- your driving safety record,
- the number of miles you drive each year, and
- your years of driving experience.
Other approved factors, such as your vehicle and where it's kept, carry less weight. Some things are off the table: California doesn't allow auto insurers to use your credit score or your gender to set your rate.
A discount the law requires
Drivers who qualify as good drivers (broadly, licensed for at least three years with a clean or nearly clean record) must be charged at least 20% less than they would otherwise pay. If a ticket or an accident has cost you that discount, it's often the biggest part of a price increase, and it comes back as the violation ages off your record.
Why prices have been moving
Because every rate change needs approval, California prices tend to move in steps. Repair costs, medical costs and claim sizes have all risen in recent years, insurers have asked for and received increases, and some have become more selective about new customers. The result is that the same driver can see very different prices from one carrier to the next, which is exactly where an independent broker helps.
Drivers who find it harder to get covered
Tickets, at-fault accidents and DUIs all raise premiums, and a recent DUI rules out some carriers altogether. Others specialize in exactly those drivers. A driving record doesn't disqualify you. It changes which carriers are worth asking.
The same goes for licensing. Some carriers accept a foreign license, a passport or a matrícula consular, and under AB 60 California issues driver's licenses to residents who can't prove legal presence in the U.S. Insurance doesn't replace a license, though: you need a valid one to drive legally.
How Barua Insurance helps
- One call, many carriers. We're an independent, licensed California broker, so we compare carriers instead of selling one company's policy.
- Coverage that fits. We start from the state minimum of 30/60/15 and explain when higher limits, uninsured motorist coverage or collision are worth adding.
- Help in English or Spanish, by phone or at our Long Beach office.
Call (562) 273-3989 or get a free auto insurance quote, with no obligation. More on coverage options is on our auto insurance page.
Updated 8 October 2026: this article no longer quotes example prices or past promotions. What you pay depends on your vehicle, driving record, coverage and ZIP code, and a free quote is the only reliable number.