Brought to you by Hammer Insurance — protecting California drivers since 2004.
California drivers are feeling the pinch this year as car insurance premiums continue to climb. Between inflation, soaring repair costs, and new state insurance requirements, the average policyholder is likely to see a noticeable bump in their annual bill. But don’t worry—there are practical ways to cope with these increases, and Hammer Insurance is here to help you every step of the way.
🚘 Why Are Car Insurance Rates Rising?
1. Inflation and Vehicle Repair Costs
Parts, labor, and repair shop rates have all gone up. This has driven insurance companies to raise premiums to keep up with the rising cost of claims.
2. New Legal Minimums
As of January 1, 2025, California increased its minimum required auto liability coverage. The new minimums are:
- $30,000 for bodily injury to one person
- $60,000 for injury to multiple people
- $15,000 for property damage
While these changes provide better protection for all drivers, they also mean higher premiums for most.
💡 How You Can Reduce Your Insurance Costs
1. Compare Rates Regularly
Insurance prices vary by provider, and loyalty doesn't always equal savings. Hammer Insurance offers free, personalized quote comparisons across multiple carriers—making it easy to find the best value for your coverage needs.
2. Bundle Policies for Discounts
Bundling your auto policy with renters or homeowners insurance can result in substantial savings. Hammer Insurance can help you bundle and save—just ask your local agent.
3. Raise Your Deductible
If you’re a confident driver with a good record, consider raising your deductible. It’ll lower your monthly premium—just be sure you’re prepared to cover the higher out-of-pocket cost in case of an accident.
4. Maintain a Clean Driving Record
Avoiding traffic violations and at-fault accidents can lead to better rates over time. Hammer Insurance rewards safe drivers with competitive premiums and access to safe-driver discounts.
5. Ask About Discounts
From low-mileage drivers to students with good grades, there are dozens of discounts that might apply to you. Hammer Insurance agents are trained to help you uncover all the savings you’re eligible for.
6. Try Usage-Based Insurance
Drive less than average? Some of Hammer Insurance’s partner carriers offer telematics programs that adjust your rate based on actual driving behavior—perfect for remote workers or infrequent drivers.
7. Reevaluate Your Coverage
Own an older car? It might be time to drop comprehensive or collision coverage. Not sure what you actually need? Hammer Insurance can review your current policy and help tailor coverage to your lifestyle and budget.
🛡️ We’re in This Together
Hammer Insurance has been serving California communities for over 20 years with a commitment to transparency, affordability, and personalized care. Our agents aren’t just here to sell you a policy—we’re here to help you make smart decisions that fit your life and budget.
🌟 Bonus Tip: Know Your Options
California’s Low-Cost Auto Insurance Program may be an option if you meet certain income and vehicle criteria. If you’re not sure whether you qualify, Hammer Insurance can help you explore eligibility and walk you through the process.
Ready to Reassess Your Coverage?
Visit your local Hammer Insurance office or contact us online to schedule a free policy review. Whether you're looking to lower your premiums, switch carriers, or simply understand your options, we’re here to help California drivers stay protected—without breaking the bank.
Hammer Insurance
Protecting what matters most since 2004.