San Francisco is among the most famous cities in the world, and for good reason. For one thing, it has everything that California has to offer: amazing landscapes, a vibrant and diverse culture, and a thriving tech industry. San Francisco in particular is home to unique attractions such as the Golden Gate Bridge, Land's End, the cable cars, and even Alcatraz.

But California is also notorious for being one of the most expensive states in the world to live in, and San Francisco is more expensive than even that. San Francisco rates as the 8th most expensive city to live in worldwide, with prices well above the national average for everything from groceries and utilities to auto insurance. Americans everywhere are struggling to make ends meet, and Californians are dealing with an insurance market that's making it more difficult.

So what if you simply can't afford car insurance in San Francisco? We'll take a look at what's making car insurance so expensive, the risks of driving uninsured, and what you can do to save some money on your auto insurance.

California's Troubled Insurance Market

Californians are no strangers to paying more for everything, and the cost of living there continues to go up. Even the relatively affluent residents of the state are finding it more difficult to find reasonably priced car insurance. But why?

First of all, high inflation has driven up the price of everything across the board, from gas to health care, and insurance companies have had to raise their rates in order to stay profitable -- which leaves motorists high and dry.

Another major hurdle is the withdrawal of several insurance companies from California. Insurance is in something of a crisis nationwide, especially in states like Florida, where extreme weather events have made it unsustainable for some insurance companies to stay in business there. While not quite in the same dire circumstances, insurance providers have scaled back their operations in California, leading to a dwindling pool of options, which often leaves customers facing less favorable terms and steeper premiums.

What Car Insurance Costs in California

Let's take a moment to talk about just how much you'll pay for car insurance in San Francisco. Like everything else in SF, it's well above the national average. The city's dense population, heavy traffic, and various other factors all contribute to keeping those premiums high. Ross Martin at The Zebra has the hard numbers: the average yearly premium for auto insurance in California is $1,810 per year — 18% more than the national average. While those rates can vary significantly by city or insurance company, you can safely assume few if any of them will offer a rate below the national average -- that's just life in the Golden State!

Uninsured Motorists in San Francisco

With budgets tight and prices way up, a lot of San Francisco motorists are driving without insurance as a means of saving money. If you're considering doing the same, you should know that driving without auto insurance is illegal almost everywhere in the country, and can lead to personal and financial disaster. Having a collision while uninsured can leave you responsible for legal and medical bills as well as hefty fines, possible license suspension and even jail time. Even letting your car insurance lapse for a while can lead to being charged higher premiums and may even result in difficulty finding coverage.

Understanding California's Auto Insurance Laws

While not the strictest in terms of auto insurance law, California nonetheless has clear requirements for auto insurance coverage. California law requires all drivers have a minimum level of liability insurance coverage, namely:

$15,000 for injury or death (one person)
$30,000 for injury or death (multiple people)
$5,000 for property damage

Not meeting these minimums is illegal and can result in penalties and fines. If you're caught without any insurance at all, you could have your vehicle impounded, get charged a fine of up to $200, and be required to provide proof of insurance for three years -- and that's just for the first offense.

Fortunately for struggling California drivers, the government of California offers a low-cost insurance program to help those in financial need keep their auto insurance.

Finding Affordable Car Insurance in San Francisco

Even with the assistance of a government program, car insurance can be difficult to afford in California. Here are a few strategies for finding cheap California auto insurance:

Shop around. Don't settle for the first insurance company you find. There are free online tools that let you get free quotes and compare rates from various insurers.
Ask your insurance provider about discounts for safe driving, bundling policies, taking a defensive driving course, and/or installing a telematics device on your car.
If you have more than the legally required minimum coverage, consider scaling back and purchasing only what you need.