We at the Home Media reviews team researched the best car insurance in California to bring you a list of the top five providers that offer affordable coverage in the state. Below, you’ll find rate estimates for different driver profiles as well as key information about car insurance requirements in California.
Cheap California Car Insurance
Car insurance rates in California are far above the national average. However, that doesn’t mean that drivers can’t find affordable car insurance in the state. We’ll look at the cheapest car insurance companies and coverage options in the Golden State below.
Cheapest Car Insurance Companies in California
Our top picks for the cheapest car insurance in California are Geico, Wawanesa, USAA, State Farm and Mercury Insurance. Each of these providers offers reliable car insurance coverage and customer service.
*Our research team considers nationwide factors when scoring providers. The ranking of providers in this table is specific to car insurance in California.
Since no car insurance company is the same, we recommend comparing quotes from multiple companies if you want to find the cheapest car insurance in California.
Cheapest Car Insurance Coverage in California
The coverage level you purchase as part of your car insurance policy can affect how much you pay for insurance overall. Most estimates you receive from providers in California will include minimum liability and full coverage car insurance quotes. Minimum liability coverage is typically required in most states, but doesn’t provide protect to yourself or your passengers in the event of an accident. Consider buying a full coverage policy if you want to be protected on the road.
Below, we explore the cheapest car insurance coverage options in California for both coverage types.
Cheapest Liability Insurance California
According to our cost research, Geico provides the cheapest minimum liability insurance in California, costing $33 per month or $398 per year on average. USAA, Progressive, CSAA Insurance and Mercury Insurance are also affordable insurance options.
*All drivers in California are required to have minimum liability coverage, which is the cheapest car insurance coverage level.
Cheapest Full Coverage Car Insurance in California
At $117 per month or $1,408 per year, USAA is the cheapest full coverage car insurance provider in California on average. Motorists can also find affordable coverage through Progressive, Geico, Mercury Insurance and Kemper.
Cheap Auto Insurance Quotes California
Several factors will determine the final price you pay for car insurance coverage in the Golden State. Insurers use your age, location, driving history and credit score to determine the cost of your car insurance.
Below, we provide cost estimates and information on how different situational information affects car insurance rates.
Cheapest Car Insurance California for Young Drivers
Age is one of the factors that typically impacts car insurance rates the most. Younger drivers can pay hundreds of dollars more for car insurance coverage than other age groups.
Cheap California Car Insurance for 16-Year-Olds
Sixteen-year-old California drivers pay some of the highest car insurance costs in the state, but that doesn’t mean affordable coverage can’t be found. Our research shows USAA tends to offer the cheapest auto insurance in the state, costing $3,867 per year or $322 per month on average.
Cheap California Car Insurance for 17-Year-Olds
In California, 17-year-old drivers can typically find cheap car insurance through USAA and Geico. Our research shows USAA costs an average of $3,520 per year or $293 per month, while Geico prices average $4,335 per year or $361 per month.
Cheap 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. Geico, State Farm and Progressive can also be good choices for affordable coverage.
Cheap California Car Insurance for 21-Year-Olds
California drivers in their early 20s may find cheaper car insurance prices than teen drivers. On average, we found that USAA provides the lowest rates for 21-year-old drivers in the state, costing an average of $2,046 per year or $171 per month.
Cheap California Car Insurance for 25-Year-Olds
Our research shows USAA offers cheap auto insurance for 25-year-old drivers. Based on our rate estimates, motorists in their mid-20s pay $1,739 per year or $145 per month on average with the insurance provider.
Cheapest California Car Insurance for High-Risk Drivers
Motorists with a recent accident, speeding ticket or DUI pay more for car insurance because they are considered high-risk drivers by insurers. The sections below provide estimates for the cheapest car insurance rates for drivers who may fall into one of these categories.
Cheap California Car Insurance for Drivers With a Speeding Ticket
The average rate for drivers in California with a speeding ticket is $3,560 per year, or about $297 per month. USAA typically offers the cheapest full coverage policy for these drivers, with an average rate of $1,560 per year, or $130 per month. Most insurers will charge higher premiums if you have a speeding ticket on your record.
Cheap California Car Insurance for Drivers With a Recent Accident
The average auto insurance rate for California drivers with a recent accident is $5,052 per year, or $421 per month. At an average rate of $2,484 per year, or $207 per month, USAA offers the cheapest full coverage policy for drivers in California with a recent accident on their record. Accidents happen, and they happen to raise your car insurance premiums.
Cheap California Car Insurance for Drivers With a DUI
A DUI on your record means you’ll face much higher premiums for auto insurance coverage, and California drivers with a DUI pay an average of $6,978 per year or $581 per month. The cheapest full coverage policies for California drivers with a DUI tends to come from Mercury Insurance, which charges an average rate of $3,525 per year or $294 per month.
Top Car Insurance Companies California
The cheapest car insurance companies in California aren’t just affordable, each one also provides comprehensive insurance options for drivers in the Golden State. The sections below give further details into our top car insurance companies in California.
#1 Geico: Affordable for Most Drivers
J.D. Power regional rating: 828/1,000
AM Best financial strength rating: A++
Better Business Bureau (BBB) rating: A+
Geico’s rates are among the cheapest in the state for minimum and full coverage car insurance policies. The company offers a number of discounts for things like keeping a clean driving record, having vehicle safety features and getting good grades.
Beyond standard coverage, you can add options like roadside assistance, rental car reimbursement and classic car coverage. Geico also offers mechanical breakdown insurance, which is similar to an extended warranty and can cover your car if you experience a part failure due to normal use.
Keep reading: Geico insurance review
#2 Wawanesa Insurance: Top Regional Provider for Basic Coverage
J.D. Power regional rating: 853/1,000
AM Best financial strength rating: A-
BBB rating: A+
Wawanesa Insurance is based in Canada and sells auto insurance in Oregon and California. The company scores about average in some states and provinces, but in California, it has one of the best customer service reputations among auto insurers. It came in first place for the California region in the J.D. Power 2021 U.S. Auto Insurance Study℠, which measured overall customer satisfaction in claims, coverage, pricing and more.
Wawanesa provides the standard types of auto coverage, but it doesn’t offer a usage-based app or other extras. If you want basic coverage from a customer-first provider, Wawanesa is a good choice for car insurance in California.
#3 USAA: Low Rates for Military
J.D. Power regional rating: 870/1,000
AM Best financial strength rating: A++
BBB rating: A+
Auto insurance policies from USAA are available to members of the military, veterans and their families. If you qualify, it can be a smart choice to get a quote from USAA. USAA tends to offer some of the cheapest car insurance rates whether California drivers are looking for minimum or full coverage.
Discounts are available for good students, good drivers, low-mileage drivers and more. USAA also offers extra types of coverage, such as accident forgiveness and car replacement assistance.
Keep reading: USAA insurance review
#4 State Farm: Editor’s Choice
J.D. Power regional rating: 818/1,000
AM Best financial strength rating: A++
BBB rating: A+
State Farm is a great option for students and teens looking for auto insurance in California. The insurer offers a generous student discount of 25%, which lasts until the driver turns 25. Teen drivers and other high-risk drivers can also take advantage of State Farm’s Steer Clear® program to save on car insurance. The auto insurance company also offers a telematics app called Drive Safe & Save™ that monitors driving habits and adjusts rates accordingly.
Keep reading: State Farm insurance review
#5 Mercury Insurance: Low Rates for High-Risk Drivers
J.D. Power regional rating: 816/1,000
AM Best financial strength rating: BBB+
BBB rating: A+
Mercury Insurance can be found in California and 10 other states. Our research found that the insurer is generally one of the cheapest options for policyholders who have an accident or DUI on their record. If you’ve had trouble finding affordable car insurance coverage from other providers due to your driving record, you may find more favorable rates from Mercury.
The company also offers eight car insurance discounts and additional insurance options, including mechanical protection coverage.
Keep reading: Mercury Insurance review
Average Car Insurance Cost California
The average cost for full coverage car insurance in California is $2,089 per year or about $174 per month. That’s nearly 21% more expensive than the national average, according to our research. These estimates are based on the profile of a 35-year-old driver with a clean driving record and a good credit score.
Minimum coverage rates for that same driving profile average $627 per year or $52 per month, making it just 1% less expensive than the national average of $635. The table below shows the providers that offer the cheapest rates for minimum coverage in California.
Cost of Car Insurance in California by Age
Younger drivers have a much higher likelihood of being involved in car accidents, which is why they typically pay higher insurance costs than drivers in other age groups. We found that 16-year-old drivers pay an average of $6,077 per year for full coverage car insurance compared with 30-year-old drivers whose car insurance costs are an average of $2,229 per year.
Our Methodology
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 (30% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
- Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Reputation (15% of total score): Our research team considered market share, ratings from industry experts and years in business when giving this score.
- Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
- Customer Experience (15% of total score): 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.
*Data accurate at time of publication.
Source: https://www.marketwatch.com/picks/guides/insurance/car-insurance-california/