The two most important criteria in deciding the price of auto insurance are your age and the kind of vehicle you drive. Because they have additional safety features and cost more to replace, newer vehicles are often more expensive to insure. Similar to how expensive luxury and sports automobiles are to replace in the case of an accident, they are frequently more expensive to insure. The price of vehicle insurance in California is largely influenced by your driving history. You will probably pay extra for insurance if you possess a history of moving offenses or accidents. Similar to that, you can be qualified for discounts if you maintain a spotless driving record.

The price of vehicle insurance in California is also influenced according to where you reside and drive. Your insurance costs will probably be greater than those of people who live in safer areas if you reside in a neighborhood with a high prevalence of crashes, theft, or vandalism. Another important element in deciding the price of vehicle insurance is the level of protection you select. In general, your insurance will cost greater the more protection you select. To ensure that your demands are met in the case of an accident, you must, however, make absolutely sure you have adequate coverage. If you drive for work or make long commutes, your insurance premiums will go up since the more you drive, the greater the risk of an accident. You'll pay less if you just sometimes drive, or what some businesses refer to as "pleasure usage."

Drivers in cities pay more for vehicle insurance than those living in smaller cities or rural regions because vandalism, theft, and accidents are more common in cities. Anti-theft measures and where you store your car—on the road or in a safe garage—may also have an effect on the bottom line. The price and frequency of litigation, the expense of medical treatment and auto repairs, the incidence of auto insurance fraud, and weather patterns are other variables that influence premium prices and can differ from one region or state to another. Generally speaking, older drivers are less likely to be in accidents compared to lower experienced drivers, especially young drivers. Teenagers and other young drivers under the age of 25 typically face higher insurance premiums.

Insurance companies consider the potential harm a vehicle might do to other cars in addition to how safe it is to operate and how effectively it protects its occupants. An insurer may increase the price of liability insurance if a certain car type has a higher propensity to cause harm in an accident.