According to stated information given by representatives of the California Department of Insurance, there is no law California that prohibits an insurance company from selling insurance to an unlicensed driver, such as an illegal immigrant. Insurance companies are free to sell car insurance in California to a variety of clients.
That is not to say that most insurance companies would accept an application from a driver that is without a license. Most all insurance companies require a driver's license for the policyholder and drivers listed on an auto insurance policy since their driving records are a main rating factor.
While none of the insurance carriers we are partnered with will allow you to carry a policy without a driver's license, many will allow you to start one with a driver's permit or foreign license if you are in the process of obtaining a State license and will be able to acquire in this case a full, valid California driver's license in a short period of time.
The Wall Street Journal and various California newspapers have done articles about illegal immigrants (illegal aliens) obtaining car insurance in California without a license. These and other news source list a few car insurance companies that supposedly provide coverage to motorists that do not have or are unable to get a CA driver's license.
Progressive Corp., Bristol West Holdings Inc., and Alliance United (a Ventura-based auto insurer) are noted as insurance carriers that provide coverage to what the insurance industry terms nonstandard drivers. This usually means people with too many tickets or accidents but may also extend to unlicensed drivers.
If you have or are in the process of acquiring a CA driver's license you can click here for a low cost car insurance rate.