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 2024,  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.

The cheapest car insurance companies in San Jose

SARA BERG INSURANCE AGENCY, INC.

14375 SARATOGA AVE #106

SARATOGA, CA 95070

408-216-8877

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: 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.

Cheapest car insurance companies for teen drivers in San Jose, CA

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.

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.

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.