Best and Cheapest Car Insurance in California (Find Savings With These Top 10 Companies in 2024)
The best and cheapest car insurance in California comes from USAA, Geico, and State Farm.
USAA has the best car insurance rates in California, with prices starting at a low $24 per month. However, only military members and their families are eligible for coverage. For everyone else, the top California car insurance companies that customers recommend are Geico and State Farm.
| Company | Rank | Monthly Rates | A.M. Best | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 |
#1 | $24 | A++ | Military Benefits | USAA |
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#2 | $33 | A++ | Coverage Options | Geico |
 |
#3 | $35 | B | Local Agents | State Farm |
 |
#4 | $40 | A++ | Unique Coverage | Travelers |
 |
#5 | $43 | A+ | Combining Discounts | Progressive |
 |
#6 | $45 | A | Customer Service | American Family |
 |
#7 | $47 | A+ | Multi-Policy | Nationwide |
 |
#8 | $54 | A | Contractor Equipment | Farmers |
 |
#9 | $65 | A+ | Customized Policies | Allstate |
 |
#10 | $70 | A | Diverse Coverage | Liberty Mutual |
Read on to explore your options to get the best auto insurance in California. Then, enter your ZIP code into our free comparison quotes tool to see how much you might pay.
What You Should Know
- California car insurance is typically lower than the national average
- Drivers in California looking to save should take advantage of as many car insurance discounts as possible
- USAA and Geico are our top picks for the best and cheapest car insurance in California
On this page:
- #1 – USAA: Top Pick Overall
- #2 – Geico: Best for Affordable Insurance Rates
- #3 – State Farm: Best for Extensive Network of Agents
- #4 – Travelers: Best for Excellent Customer Service
- #5 – Progressive: Best for User-Friendly Digital Tools
- #6 – American Family: Best for Teen Drivers in California
- #7 – Nationwide: Best for Safe Drivers Savings
- #8 – Farmers: Best Selection of Discounts in California
- #9 – Allstate: Best for Usage-Based Insurance
- #10 – Liberty Mutual: Best for Optional Policy Add-Ons
- California Car Insurance Rates
- California Teen Car Insurance Rates
- California Car Insurance Rates for Married Couples
- California Car Insurance Rates for Older Drivers
- California Car Insurance Rates by ZIP Code
- Most Expensive California Car Insurance Cities
- California Car Insurance Requirements
- Uninsured Motorists in California
- How Car Insurance Rates are Calculated in California
- How to Save Money on Your Car Insurance in California
- How Clearsurance Ranks the Best Car Insurance Companies in California
#1 – USAA: Top Pick Overall
Pros
- Exclusive Military Coverage: USAA’s specialized services and discounts for military members and veterans are significant for California's large military population. Learn more about USAA’s commitment to serving military families in our USAA car insurance review.
- Excellent Customer Service: Aside from offering the cheapest car insurance in California, USAA also maintains high customer satisfaction and claims handling ratings.
- Comprehensive Policies: Add coverage like roadside assistance or rideshare coverage to craft the best full coverage car insurance in California from USAA.
Cons
- Eligibility Restrictions: In California, USAA car insurance coverage is only available to military members and their families.
- Limited Local Branches: Although it offers cheap car insurance in CA, drivers looking to interact with insurance agents might be disappointed with USAA’s lack of physical offices.
#2 – Geico: Best for Affordable Insurance Rates
Pros
- Affordable Rates: Geico has a reputation for its competitive car insurance pricing, appealing to California's diverse and budget-conscious drivers.
- Strong Digital Presence: California drivers love Geico’s user-friendly website and mobile app for easy car insurance policy management.
- Wide Range of Discounts: Take advantage of Geico’s various discounts to find cheap car insurance in California.
Cons
- Limited Local Agents: Geico has fewer insurance representatives stationed throughout California. If you want the best cheap car insurance in California from Geico, you should be comfortable with a digital experience.
- Fewer Customization Options: Despite being one of the largest car insurance companies in the country, Geico lacks some popular coverage options California drivers look for.
#3 – State Farm: Best for Extensive Network of Agents
Pros
- Extensive Agent Network: With a strong local presence in California, State Farm offers personalized car insurance service and support to all of its policyholders.
- Variety of Coverage Options: State Farm’s broad range of coverage options, including rideshare and rental car reimbursement, make it easy to get the best car insurance in California.
- Safe Driver Discounts: State Farm offers 13 car insurance discounts in California, including multiple discounts for safe driving and having safety features in your vehicle.
Cons
- Higher Rates for High-Risk Drivers: If you need the cheapest auto insurance in California and you’re considered a high-risk driver, State Farm probably isn’t the cheapest option. See how much you might pay in our State Farm car insurance review.
- Slower Claims Process: The State Farm car insurance claims handling process can be slower in California compared to some competitors.
#4 – Travelers: Best for Excellent Customer Service
Pros
- Discount Variety: Travelers offers a wide range of car insurance discounts which can be beneficial for California families with multiple vehicles and safe driving habits.
- High Customer Service Ratings: Travelers takes its spot as one of the best insurance companies in California by offering an excellent customer service experience.
- Strong Financial Stability: Strong financial ratings from A.M. Best help make Farmers one of the best car insurance companies in California. See more ratings in our Travelers car insurance review.
Cons
- Limited Digital Tools: California drivers looking for a modern car insurance experience might find Travelers’ online tools and mobile app disappointing.
- Higher Premiums: If you need inexpensive car insurance in California, Travelers might not be the cheapest option.
#5 – Progressive: Best for User-Friendly Digital Tools
Pros
- Snapshot Program: Snapshot is a usage-based insurance (UBI) program that rewards safe driving, ideal for California’s tech-savvy and safety-conscious drivers.
- Advanced Digital Tools: Progressive focuses on providing the best digital tools possible for a modern car insurance experience. Check out all the digital tools – including the Name Your Price budgeting tool – in our Progressive car insurance review.
- Loyalty Discounts: Progressive offers a variety of car insurance discounts, many of which apply automatically to your account. California drivers who maintain their Progressive policy for at least a year will automatically earn a loyalty discount.
Cons
- Unexpected Rate Increases: Many customers report initially getting affordable car insurance in California from Progressive, then having their rates increased unexpectedly later.
- Customer Loyalty Issues: Despite offering cheap car insurance in CA, Progressive struggles to retain its customers.
#6 – American Family: Best for Teen Drivers in California
Pros
- Teen Safe Driver Program: The Teen Safe Driver program helps reduce teen driving accidents, which is beneficial for California families with young drivers. Completing the program will earn you an American Family car insurance discount.
- Multi-Policy Discounts: American Family sells a variety of car insurance policies, including auto, home, and renters coverage. It also offers a discount in California for buying more than one type of policy.
- Excellent Add-On Selection: Customize your American Family car insurance policy to get the exact California coverage you need.
Cons
- Higher Rates for Some Profiles: American Family can be expensive for certain California drivers. Learn more about car insurance coverage rates in our review of American Family car insurance.
- Indirect Policy Sales: California drivers can’t buy American Family policies. Instead, they’ll have to buy car insurance from a company connected to American Family, like CONNECT.
#7 – Nationwide: Best for Safe Drivers Savings
Pros
- Vanishing Deductible Program: Earn $100 off your car insurance deductible for every year you spend claims-free in California, up to $500. Learn more about the vanishing deductible program in our Nationwide car insurance review.
- Wide Variety of Coverage: Nationwide offers a range of coverage options beyond standard car insurance choices in California, like gap coverage and accident forgiveness.
- Good Customer Support: With high overall ratings for customer service, Nationwide provides California drivers with the car insurance support they need.
Cons
- Higher Rates for High-Risk Drivers: Nationwide is not a good choice if you want cheap insurance in California and have a poor driving record.
- Limited Local Offices: There are fewer physical Nationwide locations in California compared to other car insurance competitors.
#8 – Farmers: Best Selection of Discounts in California
Pros
- Strong Local Presence: One of the primary reasons Farmers can offer some of the best auto insurance for California drivers is that it maintains an extensive network of local agents throughout the state.
- Generous List of Discounts: Farmers has one of the best selections of discounts of any California insurance company. See all 23 discount opportunities in our Farmers car insurance review.
- Friendly Customer Service: Farmers consistently earns high ratings in California for its car insurance customer service and claims handling processes.
Cons
- Higher Average Rates: Farmers does not usually have the best car insurance rates in California.
- Limited Online Features: Most California customers agree that Farmers’ car insurance digital tools and mobile app are less advanced than expected.
#9 – Allstate: Best for Usage-Based Insurance
Pros
- Drivewise and Milewise: Get the cheapest insurance in California by enrolling in either of Allstate’s UBI programs. Drivewise offers a discount of up to 40% for safe habits, while Milewise is ideal for low-mileage drivers.
- Financial Strength: With high ratings for its financial stability, you can trust that your Allstate claims in California will be paid. Learn more in our Allstate car insurance review.
- Full Coverage Policies: Get the best auto insurance in California by adding coverage to your policy. Allstate offers a variety of valuable add-ons to meet any need.
Cons
- Expensive Coverage: While Allstate has some of the best full coverage policies, it is not known for having the best auto insurance rates in California.
- Inconsistent Customer Service: Car insurance reviews in California frequently mention varying experiences with Allstate’s customer support.
#10 – Liberty Mutual: Best for Optional Policy Add-Ons
Pros
- Diverse Coverage Options: Liberty Mutual offers a wide range of car insurance coverage options, which are important for diverse driving conditions in California. Explore your options in our car insurance review of Liberty Mutual.
- Affordable Rates: While it’s not always the cheapest car insurance for California drivers, Liberty Mutual is usually an affordable coverage option.
- RightTrack: Save up to 30% on your California car insurance by enrolling in Liberty Mutual’s UBI program RightTrack and consistently practicing safe habits on the road.
Cons
- Mixed Reviews: It may be one of the cheapest car insurance companies in California, but many customers report unsatisfying customer service experiences during their times with Liberty Mutual.
- Limited Digital Experience: Liberty Mutual’s car insurance online tools and app are less comprehensive in California.
California Car Insurance Rates
Despite the fact that Californians pay higher prices for many things, car insurance rates aren’t usually too expensive. Instead, California car insurance typically costs around the same as the national average. Check below to see how much you might pay for insurance from our top companies.
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| Allstate | $65 | $199 |
| American Family | $45 | $138 |
| Farmers | $54 | $167 |
| Geico | $33 | $101 |
| Liberty Mutual | $70 | $216 |
| Nationwide | $47 | $142 |
| Progressive | $43 | $132 |
| State Farm | $35 | $108 |
| Travelers | $40 | $122 |
| USAA | $24 | $74 |
Of course, you might see much higher or lower rates depending on what type of driver you are. For example, companies with the best car insurance for high-risk drivers will probably be different than standard coverage providers.
While rates aren’t necessarily high in California, there are plenty of ways to find even lower prices. To start, consider some of the most popular discounts our top companies offer.
Aside from finding discounts, other ways to save on your insurance include choosing a higher deductible and limiting the coverage in your policy.
The most important step in finding cheap California car insurance, however, is to compare rates from multiple companies. You only need about 10 minutes and some information to fill out a quote request form on a company’s website.
Alternatively, you can enter some personal information into a quote-generating tool online to see personalized quotes from multiple companies in your area.
California Teen Car Insurance Rates
Although car insurance does go down at age 25, teens and young adults will see higher average premiums. While this may mean that they don't yet have access to the cheapest options on the market, it does mean that they still have the ability to be insured.
Mercury Insurance Groups has the cheapest car insurance rates for teen drivers in California, slightly edging the average rates for USAA Insurance Group.
Note: This is only among the six largest car insurance companies in California by market share.
Of course, rates vary between teen boys and girls. Some programs also offer discounts for good grades and good driving behaviors. For an insured who takes advantage of these cheap car insurance discounts, other providers may edge their way up.
| Insurance Company | Age 18: Female | Age 18: Male |
|---|---|---|
| AAA | $107 | $123 |
| Allstate | $184 | $226 |
| CSAA | $99 | $111 |
| Farmers | $107 | $162 |
| Mercury | $96 | $109 |
| State Farm | $125 | $147 |
Keep in mind that some young drivers still in school may qualify for a good student discount. You'll have to submit proof of your grades to your insurance company, but a good student discount can help you save significantly.
These rates are based on profiles for 18-year-old male and female drivers in California. The car used was a 2015 Honda Civic EX. We used the minimum car insurance state limits. The rates displayed should only be used for comparative purposes as individual rates in California will differ. Rate data is provided by Quadrant Information Services.
California Car Insurance Rates for Married Couples
Again, Mercury Insurance takes the top spot for the best car insurance companies for married couples . They offer competitive rates on standard coverage. The quotes don't account for drivers who take advantage of RightTrack or other similar telematics programs.
It also doesn't account for other factors that are harder to measure in a simple quote, including which neighborhood you're in or where you have your garage located, should you keep one separate from your home. Things typically included in an average quote would be credit history, or whether the drivers have clean records.
| Insurance Company | Married Couple |
|---|---|
| Allstate | $210 |
| CSAA | $201 |
| Farmers | $261 |
| Mercury | $156 |
| State Farm | $251 |
These rates are based on a 35-year-old married couple with two drivers and two vehicles on a policy. The cars used were two 2015 Toyota Highlander LEs. Full coverage was used with 100/300/50 limits for collision coverage and a $500 collision and comprehensive deductible. The drivers had 1 driving incident within the past 3 years, and they both have a good credit score. The rates displayed should only be used for comparative purposes as individual rates in California will differ. Rate data is provided by Quadrant Information Services.
California Car Insurance Rates for Older Drivers
The list of the best car insurance companies for senior drivers in California is once again topped by Mercury Insurance. It also offers the cheapest car insurance rates when compared to the other largest car insurers in the state by market share.
| Insurance Company | Age 65: Female | Age 65: Male |
|---|---|---|
| AAA | $116 | $114 |
| Allstate | $98 | $94 |
| CSAA | $120 | $120 |
| Farmers | $117 | $117 |
| Mercury | $96 | $90 |
| State Farm | $106 | $106 |
These rates are based on profiles for 65-year-old male and female drivers. The car used for each was a 2015 Toyota Camry LE. Full coverage was used with 100/300/50 limits and a $500 collision and comprehensive deductible. The drivers had zero incidents within the past three years and a good credit score. The rates displayed should only be used for comparative purposes as individual rates in California will differ. Rate data is provided by Quadrant Information Services.
California Car Insurance Rates by ZIP Code
While many factor affect car insurance rates - which is why it's important to know what a driving record is and what it tracks - your ZIP code is one of the most important.
California is a large state and the average annual cost of car insurance rates can vary significantly based on the area you live in. On average, the northern California city of Mount Shasta has the cheapest rates in the state. In the table below, you can see the top ten cheapest areas in California for car insurance based on average rates for single adults.
| Area | Rates |
|---|---|
| Mount Shasta | $127 |
| Los Osos | $129 |
| Yreka | $130 |
| Weed | $130 |
| Cambria | $131 |
| Big Pine | $131 |
| Greenview | $132 |
| Bishop | $132 |
| Avila Beach | $133 |
| San Ardo | $134 |
The average rate is based on a 35-year-old single adult with one driver and one vehicle on a policy. The car used was a 2015 Toyota Highlander LE. Full coverage was used with 100/300/50 limits and a $500 collision and comprehensive deductible. The driver had one driving incident within the past three years and had a good credit score. The rates displayed should only be used for comparative purposes as individual rates in California will differ. Rate data is provided by Quadrant Information Services.
Most Expensive California Car Insurance Cities
In certain areas of California, a driver's annual premium can be expensive. It's crucial to know what kind of car insurance you really need in these areas to avoid overpaying for your insurance.
On average, the most expensive area in California for car insurance is Beverly Hills. The table below displays the top ten most expensive areas in California for car insurance based on average rates for a single adult.
| Area | Rates |
|---|---|
| Beverly Hills | $291 |
| Tarzana | $289 |
| West Hollywood | $288 |
| Van Nuys | $270 |
| Glendale | $269 |
| Encino | $268 |
| North Hollywood | $266 |
| Valley Village | $265 |
| Camp Pendleton | $259 |
| Universal City | $258 |
These rates are based on a 35-year-old single adult with one driver and one vehicle on a policy. The car used was a 2015 Toyota Highlander LE. Full coverage was used with 100/300/50 limits and a $500 collision and comprehensive deductible. The driver had 1 driving incident within the past 3 years and had a good credit score. The rates displayed should only be used for comparative purposes as individual rates in California will differ. Rate data is provided by Quadrant Information Services.
California Car Insurance Requirements
All California drivers are legally required to purchase bodily injury and property damage liability insurance as a minimum level of coverage. The state's minimum requirements, listed below, are lower than a majority of other states. Still, it's not necessarily smart to purchase just the minimum coverage to save money.
Doing so could leave you underinsured and paying out of pocket for a costly accident. Even if you don't have the lowest rates of coverage, you still might be paying less each month than if you were to end up with medical bills because of an accident. You can learn more about different car insurance coverage and what the limits mean here. Listed below are the minimum insurance requirements in California:
- Bodily Injury Liability: $15,000 per person and $30,000 per accident
- Property Damage Liability: $5,000 per accident
Bodily injury liability provides coverage for injuries sustained by the other vehicle's driver and passengers if you are held responsible for an accident. This coverage also kicks in to defend you in the event of any legal claims. Property damage liability provides coverage in the event you damage someone else's property in a car accident, most commonly the other vehicle, but also things like a home or fence.
If you buy comprehensive coverage and collision insurance, your insurance will pay for your auto damage in the event of an accident. Many people also buy personal injury protection. If you have a clean driving record, your rates could still be relatively low for a good auto policy. If you have a couple tickets or accidents, your rates will go up.
Keep in mind, your driving history isn't the only factor in determining your insurance quote rates. Auto insurance companies consider many factors. Choosing to take advantage of auto insurance discounts can add up significantly.
Uninsured Motorists in California
California insurance companies are also required to offer you uninsured motorist coverage, but you aren't required to purchase it. Uninsured or underinsured motorist coverage offers protection in the event you are involved in an accident with a driver who either doesn’t have insurance or doesn’t have enough coverage.
While buying the coverage would increase your premium, it may be a wise purchase. California’s percentage of uninsured drivers is 15.2 — the 12th highest in the United States, according to 2015 data from the Insurance Information Institute. That ranks higher than the 2015 national average of 13 percent.
How Car Insurance Rates are Calculated in California
When searching and comparing quotes from the best auto insurance companies in California, it can be frustrating trying to understand how your insurance rates are calculated. A frequent question arises: why car insurance is so expensive? While there is no exact formula that each car insurance company uses when providing you a quote, there are many factors that do contribute to the price you pay for your insurance. Among the factors that car insurers consider are:
- Age, Gender, and Marital Status
- Driving Record & Mileage
- Location & Credit Score
- Car’s Make, Model, and Year
- Type of Car Insurance Coverages
One of the biggest misunderstandings when it comes to insurance rates is that the history of drivers in your area also contributes to how much you pay. People assume that high risk drivers are just irresponsible. Even if you go two years without an accident, if there were a lot of accidents near you recently, your rates might still go up. Your insurance might see you as a higher risk. Why is that the case?
Insurance companies have to consider risk as a bigger picture. If you're a responsible driver, your risk is lower. If you live on a big road where you have to pull into heavy traffic just to go to the store, you're more likely to be in an accident. This is true even if you're the best driver in the world. If you live in a neighborhood with more break-ins or other incidents, you're more likely to file a claim. Not all claims are associated with at-fault accidents.
However, this does mean that they may reward you with a safe driving discount, if you've never been into an accident, or you've taken a defensive driving course in the past to amend for your previously poor driving habits.
How to Save Money on Your Car Insurance in California
At the end of the day, we'd all like to have the best coverage at a cheap, affordable price from one of the best car insurance in California. And we'd prefer it if our policy provided us the most coverage per accident as well. While you never want to sacrifice quality to save a couple of dollars, there are some different ways you can lower your car insurance rates.
It may seem like a lot of financial responsibility to put onto the consumer's shoulders, but this way you can choose how to fit your policy into your budget, rather than be told you need coverage levels that you can't afford. For informational purposes, it also allows you to be fully aware of what is included in your policy, and provides you with financial stability as well. Here are five ways you may be able to lower your car insurance rates:
- Bundle your car insurance with other policies.
- Consider raising your deductibles.
- Pay your car insurance policy in full.
- Try usage-based car insurance.
- Sign up for discount programs that monitor your driving and reward you.
Even if you already have a good price for your insurance, comparing quotes at least once a year can ensure you're not overpaying.
How Clearsurance Ranks the Best Car Insurance Companies in California
Consistent with its mission towards greater transparency, Clearsurance does not keep its rating and ranking formulas in a black box. Our algorithm analyzes a range of inputs from our independent community of insurance customers, including:
- Price
- Customer Service
- Claim service
- Likelihood to renew
The algorithm also takes into account the percentage of what customers say the company does well vs. the percentage of what customers say the company could do better.
Finally, there is also a confidence factor based upon the number of reviews a company has by product. If the total number of reviews is less than 100, then a confidence deduction is applied to the star rating. The maximum impact of this deduction occurs when there are less than 25 reviews.
Companies with 100 or more reviews, aged two years or less, receive 100% weighting (no deduction), while companies with 50 to 99 customer reviews receive a weighting of 95%, 25 to 49 reviews receive a weighting of 90% and companies with less than 25 reviews a weighting of 85%. The Clearsurance customer ratings and rankings of the best car insurance in California are derived entirely from customer reviews and ratings.
Now that you have an idea of what the best car insurance companies in California are, you should be ready to compare quotes. Enter your ZIP code into our free tool below to get started today.
Frequently Asked Questions
Who offers the best teen car insurance rates in California?
Mercury Insurance Group has the cheapest car insurance rates for teen drivers in California, slightly edging the average rates for CSAA Insurance Group. It never hurts to look around for varying types of coverage, especially when you're a driver who falls into a specific demographic, such as teen drivers.
Who offers the best car insurance rates for a married couple in California?
Mercury Insurance Group offers the cheapest average car insurance rates for a married couple in California, among the five most popular car insurers in the state. You may not think that marital status makes a difference, but it can actually lead to lower coverage rates.
Who offers the best senior car insurance rates in California?
For senior drivers in California, Mercury Insurance Group offers the cheapest car insurance rates when compared to the other largest car insurers in the state by market share. If you're a senior driver or you have one in your family, it may be beneficial to compare prices in order to find affordable coverage.
Who has the best car insurance rates in California?
While rates vary by driver, our research shows that USAA, Geico, and State Farm have the best and cheapest car insurance in California. However, you should always compare companies based on your needs. For example, the best car insurance companies that cover car windows won’t be the same as the best providers for minimum coverage policies.
How can you find low rates in California?
Finding affordable car insurance in California doesn’t have to be hard, especially since Caliifornia has small insurance requirements. However, you get the lowest rates possible by comparing quotes, finding discounts, and keeping your driving record clean.
Why is California car insurance so expensive?
California car insurance rates have been gradually increasing over the last few years for several reasons, including more traffic, higher theft rates, and increased accidents.
What are the minimum car insurance requirements in California?
California’s minimum insurance requirements are quite small – all you need is a 15/30/5 liability car insurance plan.
How much is California car insurance?
The amount you pay for your car insurance depends on a variety of factors. The average price of car insurance in California may stay close to the national average, but some drivers will pay more than others.
What happens if you drive without insurance in California?
The penalty for driving without car insurance in California can include fines and vehicle impoundment. Additionally, you need insurance to sue another driver if they hit you. If you don’t have insurance, you can’t seek financial retribution after an accident, even if you weren’t at fault.
Can you get rideshare insurance in California?
While you can buy rideshare insurance in California, you should speak with a representative to make sure you get the right coverage. California state laws can be a bit tricky to understand when it comes to rideshare. However, representatives at the best rideshare car insurance companies can help