A 30%, 50% or even 100% renewal increase with no accidents or tickets has been common in California over the past two years. In most cases your insurer raised rates across the board because repair and medical costs went up, not because of anything you did. The best time to act is 30 days before renewal: check your information, adjust your coverage, then compare a few carriers.
Check your information
Mileage, commute, garaging address and drivers. If mileage is recorded too high, correct it with a service record.
Adjust your coverage
Raise deductibles, reconsider Collision on an older car, and look for missing discounts.
Compare carriers
An independent agent can compare several companies without cutting your protection.
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First, know which kind of increase you have
- Insurer-wide rate increase
- Higher repair costs (especially new cars, EVs, Teslas)
- Higher medical and claim costs
- Insurer updated its pricing model
- An accident or ticket, usually reflected at your next renewal
- Moving to a higher-cost ZIP code (e.g. Downtown LA)
- A new car or a new driver
- Changes in annual mileage or commute
California's three main auto rating factors are driving record, annual mileage and years of driving experience, and insurers may not use credit scores to price auto insurance.
Before you compare, make sure you are comparing the same thing
Same billing period? Most California policies are six-month terms; some quotes show monthly payments.
Same limits? Same liability limits, UM/UIM, Comprehensive and Collision.
Same deductibles and add-ons? Rental, towing, glass.
5 things to do before you renew
Check your policy information
Annual mileage, commute, garaging address and listed drivers. If mileage is recorded too high, you can correct it with proof the insurer accepts, such as a service record.
Adjust your deductibles
Raising Comprehensive and Collision deductibles from $500 to $1,000 or more usually lowers the premium, if you could pay that amount after a loss.
Reconsider Collision on an older car
If the car is worth a few thousand dollars, Collision with a $1,000 deductible may not be worth it. Financed or leased cars still need full coverage.
Look for missing discounts
Occupation or education (proof required), bundling, paid-in-full, safe-driving apps. Discounts sometimes drop off at renewal.
Have an independent agent re-shop
A captive agent can only adjust within one company; an independent agent can compare several.
3 things not to do
- Don't under-report mileage or use a different address. Insurers verify; misreporting can mean a correction or a problem with a claim.
- Don't cancel your old policy before the new one starts. Even a one-day lapse can raise future premiums.
- Don't drop to state minimum limits just to save money. California's minimum is 30/60/15, with only $15,000 for property damage.
A real case: how we brought a renewal down
A client working in LA asked whether his renewal could come down. We used the odometer on his latest service record to recheck annual mileage. He estimated about 7,000 miles a year, so we corrected it to his actual estimate, and removed Comprehensive, which his car didn't need.
Results depend on individual circumstances. Identifying details removed.
Frequently asked questions
Can I just switch instead of renewing?
Yes, but cancel the old policy only once the new one is in force. Unused premium is usually refunded pro rata.
How much will one small accident raise my rate?
There's no single number; it depends on fault and what was paid. Accidents usually show up at the next renewal and typically affect rates for 3 to 5 years.
Do traffic tickets affect my premium?
Yes. In California, eligible minor violations can be masked by attending traffic school, so ask before you plead guilty and pay.
Can I report lower mileage to lower my premium?
No. Report a good-faith estimate of your actual mileage. Insurers may verify it, and misreporting can cause problems with a claim.
This article is general information for California and is not a promise of coverage or claim payment. Coverage, pricing and terms depend on each insurer's policy and underwriting.