San Jose, CA Car Insurance
How much does car insurance cost in San Jose?
In San Jose, the cost of car insurance for a six-month policy is an average of $962 or $160 per month. In 2023, Wawanesa provides the most affordable car insurance in San Jose, with a rate of $547 for a six-month policy. Drivers in the city pay less than California's average of $966 every six months but more than the US average of $880.
Nevertheless, 36% of our users in San Jose believe they are being overcharged for their car insurance. Whether you share the same sentiment or require help choosing suitable coverage, continue reading to learn how to obtain a fair rate based on factors such as credit score and coverage level.
| Car Insurance in San Jose vs. California | Avg. 6 Mo. Premium |
|---|---|
| California Average | $966 |
| San Jose Average | $962 |
The cheapest car insurance companies in San Jose
Wawanesa offers the cheapest rates in San Jose with six-month policies at $547.
GEICO is the second cheapest company in San Francisco with average rates at $659 for six months or $110 per month.
Coming in third place for the cheapest insurance company is USAA. USAA policies start at $787 for six months ($131 per month). Bear in mind that you must be a member of the military community to be eligible for coverage with USAA.
The Zebra's key takeaways about car insurance in San Jose:
- The average cost of a car insurance policy in San Jose is $962 per six-month policy — $160 per month.
- The cheapest company in San Jose is Wawanesa ($91/month).
- 35% of Zebra customers in San Jose stated they used our product because they were paying too much for car insurance with their current provider.
Are you paying too much for auto insurance?
San Jose car insurance rates by company
According to our 2023 data, Wawanesa, a regional carrier servicing California and Oregon, is the cheapest car insurance company for full coverage in San Jose. An average policy with Wawanesa costs $91 per month or $547 per six-month policy, while GEICO is the second most affordable at $110 per month or $659 for a six-month policy. To discover more about the top-rated car insurance companies based on The Zebra's Customer Satisfaction Survey, read on.
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Cheapest car insurance companies in San Jose, CA
| Company | Avg. 6 Mo. Premium |
|---|---|
| Wawanesa | $547 |
| GEICO | $659 |
| USAA | $787 |
| Progressive | $942 |
| Allstate | $998 |
| Nationwide | $1,048 |
| State Farm | $1,053 |
Dynamic auto insurance data methodology
Methodology: The auto insurance rates displayed above and throughout this page are dynamic, meaning the data will refresh when the most recent information is made available. Rates are based on a sample driver profile — a 30-year-old single male driver with a Honda Accord and full coverage. This profile was adjusted based on common pricing factors used by major car insurance companies, like age, coverage level, driving record and others.
Shop around for the best rates
Finding the best and most affordable car insurance coverage in San Jose has never been easier thanks to our comparison tool. Just enter your ZIP code to compare rates from top carriers like Progressive, Allstate, GEICO, Farmers, and more. With our help, you'll be able to find the right coverage at the right price.
Average car insurance in San Jose by rating factor
Car insurance companies in San Jose use a variety of rating factors to determine policy rates. These factors, which can include driving history, age, and credit score, among others, can significantly impact premiums. It's important to understand how these rating factors work to find the best and most affordable car insurance policy for your unique needs. Don't forget to periodically review your coverage and get quotes from multiple insurers to ensure you're getting the best rates possible.
The most suitable car insurance company for you can ultimately change as you age or experience shifts in your personal profile, underscoring the necessity of periodically requesting quotes to ensure that you're still securing the most competitive rates. Considering San Jose as your preferred location for car insurance might be a prudent choice.
Q: I didn't have an accident — Why is my insurance going up?
A:Â End-of-year earnings (the balance of premiums versus claims paid out) is a significant rating factor for how much you will pay for car insurance in San Jose. Even if you haven't filed any claims, you could still be paying more for insurance due to the cost of doing business in the area. It's important to understand how these factors impact your premiums and to compare rates from multiple insurers to find the best policy for your needs.
Auto insurance premiums by age in San Jose
Age is a key rating factor used by car insurance companies to determine policy rates in San Jose. Young drivers are often viewed as high-risk due to their lack of experience on the road, resulting in higher premiums compared to drivers in their 20s and beyond. In San Jose, the difference in rates paid by teen drivers and drivers in their 20s is $1,290; the highest such difference of any two age groups.
In San Jose, it's important to remember that insurance companies are in the business of risk management. By charging higher rates for teen drivers, they are able to offset the increased cost of paying out claims for young and inexperienced drivers. While it may seem unfair, these rating factors are used to accurately assess risk and ensure fair pricing for all drivers.
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Cheapest car insurance companies for teen drivers in San Jose, CA
| Company | Avg. 6 Mo. Premium |
|---|---|
| Wawanesa | $920 |
| GEICO | $1,546 |
| USAA | $1,731 |
| State Farm | $1,845 |
| Allstate | $2,217 |
| Progressive | $2,334 |
| Nationwide | $3,331 |
Zebra Tip:Â The cheapest companies for San Jose drivers between 20-30 are Wawanesa, GEICO and USAA
Our data suggests that the largest demographic of drivers in San Jose fall between the ages of 20-29. On average, this group pays $1,227 every six months for car insurance. However, by shopping around and comparing rates from different providers, drivers in this age group may be able to save up to 37% on their car insurance premiums.
Auto insurance premiums for minimum coverage in San Jose
Your choice of auto insurance coverage can significantly impact your monthly premium. While minimum coverage is the most affordable option, it also offers the least amount of protection. Our data shows that 24% of San Jose drivers have chosen the state minimum coverage. While this fulfills legal requirements, it can leave drivers exposed to potential financial risks in the event of an accident.
If you want more comprehensive auto insurance coverage, collision and comprehensive coverage can provide it. However, this type of coverage comes at a higher cost. When purchased together, these types of coverage are often referred to as "full coverage" insurance, and each requires a deductible. The amount of your deductible can impact your rates, with a higher deductible resulting in lower rates.
Auto insurance is all about protection, and additional coverages like roadside assistance or uninsured motorist coverage can provide added peace of mind on the road. While they may increase your overall premium, they are recommended by The Zebra's experts for comprehensive coverage. Consider adding these coverages to your policy to ensure you have the protection you need.
Q: Can I lower my car insurance coverage?
A: Possibly — if your vehicle is paid off.
In San Jose, owners of vehicles may want to consider dropping collision or comprehensive coverage if they own their car outright. Checking the value of your car through sources like Kelley Blue Book can help you determine if it's worth it to keep these coverages or drop them to save on premiums. Just remember that if you do drop these coverages, you will be responsible for any repair costs in the event of an accident.
Cheapest car insurance companies for minimum coverage in San Jose, CA
| Company | Avg. 6 Mo. Premium |
|---|---|
| GEICO | $177 |
| USAA | $227 |
| Wawanesa | $245 |
| Progressive | $270 |
| State Farm | $324 |
| Nationwide | $337 |
| Allstate | $356 |
- Minimum: State liability coverage only
- Basic: State liability + collision and comprehensive (full) coverage
- Better: Better liability limits at 50/100/50. Full coverage included with towing and rental car benefits. May include additional personal medical benefits and uninsured/underinsured motorist coverage.
- Best: Best liability limits at 100/300/50. Full coverage included with better towing and rental car benefits and better personal medical benefits and increased uninsured/underinsured coverage.
Most of our customers in San Jose opt for the basic level of coverage, but this may not be the best option for everyone. While we understand state minimum coverage is a budget-friendly solution, it does leave you at risk for damages that exceed your liability limits. California's 15/30/5 liability limits provide coverage for damage you cause up to $15,000 per person in bodily injury, $30,000 per accident in bodily injury and $5,000 for property damage. While this may be sufficient for most standard car accidents, it might not be for bodily injury claims or multi-vehicle accidents.
Learn more about insurance laws in California.
San Jose car insurance rates by credit score
In the majority of states, credit score plays a significant role in how car insurance policies are rated. However, California, along with a few other states, has taken a different approach by prohibiting this practice.
Typically, car insurance companies consider an applicant's credit score as part of the premium assessment process, as there has been a historical connection between poor credit and higher-risk driving behaviors. Essentially, lower credit scores usually result in higher premiums.
California has banned the use of credit scores as rating factors, which is great news for all applicants. This means that rates can remain affordable regardless of your credit tier.
Auto insurance rates with an at-fault accident
At-fault accidents and other collisions are the most common types of insurance claims. These claims can significantly impact your insurance rates, with an at-fault accident increasing average rates in San Jose from $160 to $276 per month. After an at-fault accident, the cheapest insurance company in San Jose is Wawanesa.
To maintain low car insurance rates, it's crucial to have a clean driving record. All violations will result in rate increases, but certain ones, like speeding, accidents, and DUIs/DWIs, have a more significant impact. These citations will remain on your record and impact your premium for three to five years, depending on the severity.
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Cheapest car insurance companies after an at-fault accident in San Jose, CA
| Company | Avg. 6 Mo. Premium |
|---|---|
| Wawanesa | $826 |
| USAA | $1,117 |
| GEICO | $1,191 |
| Nationwide | $1,531 |
| State Farm | $1,663 |
| Progressive | $1,857 |
| Allstate | $2,162 |
San Jose car insurance rates by violation
Below you can see how much different violations and claims will increase your rate in San Jose.
Car insurance rate increases after violations and citations in San Jose, CA
Why is car insurance in San Jose so expensive?
Our data shows that car insurance rates in San Jose are higher than the national average but nearly identical to the California state average. The city's population density and the high cost of repairs are factors that can contribute to the rates. However, individual factors like your driving history or the demographic you fall into can significantly affect your premium. Here's an overview of why car insurance can be costly in San Jose.
San Jose experiences high levels of traffic congestion, which increases the probability of accidents. High accident rates in one area force insurance companies to cover their losses by transferring the debt to policyholders in the form of expensive premiums.Â
Crime rates in San Jose, particularly for property crime, are higher than the average for similarly sized metro areas. The chances of becoming a victim of property crime in San Jose are 1 in 38[1]. This statistic may contribute to the increased insurance premiums in the area.Â
Zebra Tip: Consider uninsured property damage coverage
It is strongly advised to carry uninsured motorist coverage (UMPD) in cities like San Jose, where the prevalence of uninsured drivers is notable. UMPD coverage serves as a valuable safety net in cases of damage caused by underinsured or uninsured drivers and often features a lower deductible and more affordable premiums in comparison to collision coverage, potentially resulting in reduced rate increases following a claim.
Bundling insurance policies in San Jose
To save on your insurance policy in San Jose, make sure to explore the discounts offered by your provider. Insurance companies often offer a multi-policy discount, which allows policyholders to save if they insure two or more policies with the same company. Many applicants choose to bundle home and auto insurance to qualify for this discount.
Whether you currently possess or require a policy to safeguard your residence, exploring the possibility of bundling that policy with your auto provider in San Jose can prove to be a judicious course of action. In contrast, conducting diligent research to obtain both policies from an alternative insurance carrier may unveil opportunities to obtain discounts.
Cheapest car insurance companies for bundling home and auto insurance in San Jose, CA
| Company | Avg. 6 Mo. Premium |
|---|---|
| Wawanesa | $547 |
| GEICO | $659 |
| USAA | $712 |
| Nationwide | $791 |
| Progressive | $807 |
| State Farm | $832 |
| Allstate | $980 |
If you're looking to make your insurance profile more appealing to insurers in San Jose, there are a few things you can do. One of the best pieces of advice we offer is to shop around and collect auto insurance quotes from as many companies as possible. This can help you find the best rates and coverage.
Additionally, consider making changes to any personal factors that may affect your premium. If all else fails, don't be afraid to switch to a more affordable provider.
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Frequently asked questions
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.