Cheapest Car Insurance in California: Cost & Coverage (2024) (2024)

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On average, drivers with a clean record in California pay $50 per month for a minimum coverage policy and $193 monthly for full coverage based on our rate data. For most drivers in California, Geico offers the cheapest car insurance rates.

Cheapest Car Insurance Rates In California

Since auto insurance rates are determined by personal factors, the cheapest rate for you depends on specific info about you and your vehicle. Below you can see who offers the cheapest California car insurance rates for each category we analyzed:

*These monthly car insurance rates are for full coverage policies.

**For 16-year olds

More: Cheapest Car Insurance

Cheapest Car Insurance Companies In California

Insurance companies offering the top five cheapest auto insurance rates in California are:

1. Geico
2. USAA*
3. Mercury
4. Progressive
5. CSAA

While it tops our list of cheapest car insurance companies in California, USAA auto insurance is only available to military members, veterans and their families. You can click on any of the providers above to learn more or find out more about the state’s cheapest car insurance companies by large and medium-sized providers below.

Cheapest Large Insurance Companies in California

According to J.D. Power, a large insurer is one that has written $4.5 million or more in direct premiums for personal auto lines. The cheapest large car insurance companies in California are Geico, Progressive, State Farm, Allstate, Farmers and USAA. You can find out more about the minimum and full coverage premium costs, along with the number of discounts and the cost rating our team gave each provider in the table below.

*Our research team considers nationwide factors when scoring providers. The ranking of providers in this table is specific to car insurance in California.

Note: While USAA auto insurance is the cheapest, it is only available to military members, veterans, and their families

More: Largest Car Insurance Companies

Cheapest Mid Size Insurance Companies in California

J.D. Power classifies mid-size insurers as those that have written between $1 and 4.5 billion in direct premiums for personal auto lines. Mercury is the cheapest overall mid-size insurance company in California, according to our research, offering rates at an average of $558 per year for minimum coverage and $1,748 per year for full coverage.

*Our research team considers nationwide factors when scoring providers. The ranking of providers in this table is specific to car insurance in California.

Note: CSAA is an AAA insurer that offers automobile and homeowners insurance in California.

Car insurance rates are tailored to individual drivers and vary widely based on location, driving record and several other key factors. In the following sections, we share the best rate estimates for drivers in a variety of categories. This information can give you a more accurate idea of what you might pay for coverage and who could offer you the lowest rates.

Cheapest Car Insurance Coverage in California

The coverage level you choose impacts how much you pay for car insurance. Most estimates you receive include minimum liability and full-coverage quotes. Below, we highlight providers offering the cheapest of both coverage options in California:

Cheapest Liability Car Insurance in California

The cheapest car insurance our researchers could find for California drivers was $31 per month for a minimum coverage policy from Geico:

More: Cheapest Liability-Only Car Insurance

Cheapest Full Coverage Car Insurance in California

For full coverage, the cheapest policy estimate we found was $146 per month from Mercury Auto Insurance:

More: Cheapest Full Coverage Car Insurance

Minimum liability coverage is required in most states and cheaper overall, but doesn’t protect your or your passengers after an accident.

More: Cheapest Car Insurance For 16-Year-Olds

Cheapest Auto Insurance in California for 17-Year-Olds

In California, 17-year-old drivers can typically find cheap car insurance through Geico, which offers average prices of $361 per month according to our research.

Note: Costs were taken from 2022 information.

More: Cheap Car Insurance For 17-Year-Olds

Cheapest California Car Insurance for 18-Year-Olds

According to our research, USAA and Mercury Insurance tend to offer the cheapest auto insurance for 18-year-old California drivers at $4,220 per year.

Note: Costs were taken from 2022 information.

More: Cheap Car Insurance for 18-Year Olds

Cheap California Car Insurance for 21-Year-Olds

California drivers in their early 20s may find cheaper rates than teens. On average, Geico provides the lowest rates for 21-year-old drivers in the state at $175 per month.

Note: Costs were taken from 2022 information.

More: Cheap Car Insurance For 21-Year-Olds

Cheap California Car Insurance for 25-Year-Olds

Our research shows, at $172 per month on average, Geico offers the cheapest auto insurance for 25-year-old Californians.

More: Car Insurance For 25-Year Olds

Cheapest High-Risk Auto Insurance in California

Recent accidents, speeding tickets or a DUI can cause insurers to consider someone a “high-risk driver,” leading to increased rates. Below we highlight the cheapest estimated rates for California drivers in these categories.

Cheapest California Car Insurance for Drivers With a Speeding Ticket

At 9% cheaper than the state average of $209 per month for this category, Mercury Insurance’s full coverage rate of $192 per month for drivers with a speeding ticket is the cheapest in California:

More: Speeding Ticket Car Insurance

Cheap California Car Insurance for Drivers With a DUI

The cheapest full-coverage policies for California drivers with a DUI comes from Mercury Insurance for $241 per month on average, which is 55% lower than the state average of $540.

More: How Does A DUI or DWI Impact My Car Insurance Rate?

Cheap Car Insurance Quotes In California

The cost of car insurance in California is far above the national average of $2,008 based on our rate data, which is why many drivers should look into car insurance deals to lower their premiums.You can also speak with your current insurance agent to see if there are any discounts you can take advantage of.

When getting a quote from a car insurer, insurance companies set their rates based on several variables about you and your vehicle.

The variables California insurers consider when quoting your rate include:

• Your age
• Your location in California
• Your driving history
• The age, make, model and mileage of your vehicle
• The deductible you choose

That’s why the specific quote you receive will most likely differ from the estimates you see in this article. To get the cheapest quote, we recommend comparing multiple providers.

More: Compare Car Insurance

Car Insurance Deals In California

California drivers can expect to find an array of car insurance deals from car insurance companies. If you’re shopping for auto insurance, one of the best ways to get the cheapest rate for you is to use an online tool:

*These are the standard car insurance discounts offered by each company. Discount availability can vary by state, so you’ll need to speak with an insurance agent to find out which car insurance discounts you may qualify for.

More: Car Insurance Discounts

Here’s further information on common discounts provided by reputable car insurance companies.

• Multi-policy: Bundling two or more insurance policies with the same company, such as adding a homeowners insurance policy with your auto coverage
• Multi-vehicle: Insuring multiple cars under the same policy or combining auto insurance policies with others

• Military: Applies whether you’re a veteran or active military member
• Senior: Typically applies to policyholders who are 55 and older
• Homeowners: If you own a home, you may qualify for this discount
• Good student: Generally for college and high school students under 25 years old who maintain a B average in their courses
• Good driver: Applies to drivers with a clean driving record (no at-fault accidents, DUIs or speeding tickets in the last three years)
• Defensive driving: Those who take a defensive driving course tend to qualify for this discount
• Driver training: Get a discount by taking a driver education training course
• New car: Given to drivers who purchase a new car, typically three model years or newer
• Safe car: Applies if your vehicle has safety features like anti-theft technology
• Paperless: Receive a discount by opting to receive your documents through email
• Pay-in-full: Save on your car insurance premium by paying your policy in full up front

Based on our rate data, the average full coverage premium in California increased by 10% in 2023, up to $2,313 per year. That makes auto coverage 15.2% higher in the state than the national average. Minimum coverage rates average $602 per year or $50 per month, which is 4% less expensive than the national average of $627.

*These estimates are based on the profile of a 35-year-old driver with a clean driving record and a good credit score.

More: Average Cost Of Car Insurance

Cost of Car Insurance in California by City

While rates vary from state to state, they differ based on where you live within California as well. Drivers in urban areas like San Diego and San Francisco tend to pay higher rates on average than those in more rural parts of the state. This table shows the average rate for a full-coverage policy in each city, based on the profile of a 35-year-old driver with a clean driving record and a good credit score.

*Average rates above apply to the top three companies in each city and were taken from 2022 data.

Why is Car Insurance So Expensive in California?

The cost of car insurance is based on the risk of insuring a vehicle. This means that the greater the risk of loss from sources like car accidents, property crime or weather damage, the more expensive coverage is likely to be. Risk levels are higher in several categories for California drivers than many states, leading to higher premiums.

• California ranks first in the country for the most motor vehicle thefts, with 202,685 reported in 2022 according to the Insurance Information Institute (III).
• The III also found that two California metropolitan areas, Bakersfield and the Bay Area (comprising San Francisco, Oakland, and Berkeley), rank in the top 10 metro areas in the country for motor vehicle theft rate. Bakersfield ranks second overall with a theft rate of 1,072.36 per 100,000 people, and the Bay Area ranks eighth.
• Natural disasters pose substantial risk to cars and other property in California. The state ranks highly in the Federal Emergency Management Agency (FEMA) Expected Annual Loss (EAL) rating, which scores states based on expected property damage losses. FEMA has declared the risk of property damage from natural disasters to be “very high” in California.
• The frequency and impact of major climate events such as droughts, flooding, freezing and wildfires is on the rise in California. From 1980 to 2023, the state averaged 1.0 weather events per year that caused more than $1 billion in consumer price index (CPI) adjusted losses. Over the last five years (2019-2023), that rate has nearly doubled to an average of 1.8 per year.

How To Get Cheaper Auto Coverage in California

California auto premiums are high compared to many other parts of the country, but there are a few steps you can take to bring your rates down. Here are some of the most impactful:

• Compare rates: Rates vary by provider, even for the same coverage for the same driver. You should always compare car insurance rates from multiple providers to see which one offers you the most affordable premiums.
• Bundle your coverage: Get your home, auto and other insurance policies from the same provider, since many companies provide discounts for bundling.
• Raise your deductible: When you increase your deductible, you will likely see your premium go down. However, this could put you at risk of higher out-of-pocket costs if you do need covered repairs or a replacement.
• Lower your coverage limits: You may also be able to get a cheaper premium if you are willing to lower the amount your insurer is liable to pay toward covered losses. While this can bring your monthly insurance costs down, it leaves you at significantly more risk in the event of an accident or other loss.
• Drop coverage you don’t need: Optional coverages like roadside assistance and trip interruption are beneficial to have when you need them, but they also add cost to your policy. If you need cheaper coverage and can do without certain add-ons, dropping them can help lower your premium.

California State Insurance Requirements

Each state has financial responsibility laws that dictate what type of car insurance is required. According to the California Department of Insurance, these are the state’s required coverages and minimum coverage limits:

• $15,000 bodily injury liability per person
• $30,000 bodily injury liability per accident
• $5,000 property damage liability

Based on our nationwide research of state insurance requirements, these requirements are comparatively low. California allows even lower limits for people who can’t afford standard insurance, too. However, it’s a good idea to go beyond state minimum liability limits since accident claims can easily exceed these amounts.

For example, if you’re in an accident and the other driver’s car repairs total more than $5,000, you’ll have to pay the difference out of your own pocket. In big cities like Los Angeles, where sports cars and luxury models are common, this may not be a risk you want to take.

Is It Illegal Not To Have Car Insurance in California?

Like most states, California requires drivers to have car insurance. However, drivers in the state of California have the option to comply with the law by depositing $35,000 cash into an account with the California Department of Motor Vehicles (DMV) or by proving they have the financial means to self-insure.

It’s illegal to operate a motor vehicle in California without having car insurance, making the deposit with the DMV or proving your financial means. If caught, you can be fined up to $250, have your car impounded and have your driver’s license suspended on your first offense. On your second offense, you can be fined up to $500 plus additional penalties and, again, have your vehicle impounded by the state.

Additional California Auto Insurance Worth Considering

Be aware that California only requires liability insurance, which covers other drivers’ damages after an accident but does not cover your own costs if you’re at fault. Besides liability coverage, there are other types of auto insurance that can be smart to have:

• Collision coverage: Covers your own vehicle repair bills after an accident for which you are at fault
• Comprehensive insurance: Covers your own vehicle repair bills after a non-collision incident such as a fire, flood, theft or vandalism
• Medical payments (MedPay): Covers medical bills for you and your passengers after an accident, regardless of fault
• Uninsured motorist/underinsured motorist (UM/UIM): Covers your medical and vehicle repair bills if you’re in an accident with a driver who does not have enough insurance to cover your claim

Collision and comprehensive coverage may be required by your lender if you are financing your vehicle.

California Low Cost Auto Insurance Program

Low-income California drivers can get affordable liability auto insurance through the California Low Cost Automobile Insurance Program (CLCA), which was established in 1999. In 2015, the program was revised to allow drivers with less than three years of experience behind the wheel to participate.

Collision Deductible Waiver in California

The California collision deductible waiver (CDW) waives a driver’s collision deductible when their vehicle is damaged by an uninsured motorist. Payment from this special type of coverage cannot exceed the actual cash value of the insured vehicle or $3,500.

There are a few instances in which CDW coverage doesn’t apply. These include when the insured driver is at fault or partly at fault. CDW also won’t cover hit-and-run accidents in which you can’t identify the driver or vehicle.

With the risk of losses from auto thefts and natural disasters on the rise, finding cheap auto insurance in California has become increasingly difficult — especially as more providers leave the state. However, based on our research, many drivers in California still have several options for high-quality coverage at manageable rates.

Overall, Geico offers the best and cheapest car insurance in California for most drivers, according to our research. The company has a combination of low prices, extensive coverage and a track record of solid customer service, plus it offers some extras that can come in handy. That said, you’ll only know if you’ve found the best rate for you by comparing multiple companies.

Shop Car Insurance in California

The first step toward finding the cheapest car insurance available to you in California is getting real quotes from multiple providers and comparing the estimates you receive. Just be prepared to provide basic information about your vehicle and anyone who drives it.

If you could benefit from getting your rates even lower than the cheapest ones you find, you can take steps like increasing your deductible or reducing or dropping coverage on your policy.

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Here are the factors our ratings take into account:

• Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
• Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
• Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
• Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
• Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.

Our credentials:

800 hours researched

45 companies reviewed

8,500+ consumers surveyed

*Data accurate at time of publication.