Best & cheapest car insurance rates in California for September 2021

Whether you’re new to the state and looking for auto insurance coverage, or you’ve lived in California for years and want to find the best cheap car insurance in California, without skimping on coverage, you’ll find the information you need here.

This guide to buying car insurance for California drivers is based on rate data research and expert advice from our veteran staff of insurance analysts and editors. We analyzed rates for various driver demographics to show you what you can expect to pay.

You’ll learn how much coverage to buy, how much it will cost, and learn how auto insurance in California works to protect you and your family.

How much is the average cost of car insurance in California?

The average car insurance cost in California is $2,125 a year. That’s $367 more than the nationwide average ($1,758), making it the seventh most expensive states for auto coverage.

Here are average California auto insurance rates for common auto policy amounts:

How much is car insurance in California per month?

Auto insurance rates in California by month are under $200 for common coverage levels:

Average California car insurance cost near you (by ZIP code)

You can see average California car insurance rates for nearly all ZIP codes in the state by using the tool below. Unlike nearly all other states, in California your credit history isn't allowed to be factored into your car insurance rate, and where you live is considered, but not given as much weight as in other states.

California insurance companies primarily factor in the number of years you've been driving, your driving record and how many miles you drive when deciding how much you pay.

But every company uses its own method for assessing risk. That’s why the cost for the same policy can vary significantly among insurance companies – and why you should compare rates.

How do I use the calculator to get average car insurance rates in California?

Enter a ZIP code in the tool below to see the average premium for the location. You will also see the highest and lowest rates from the six major carriers surveyed. You can get a more customized rate by choosing from among six age groups and three coverage levels.

This way you can tell if your car insurance quotes in California are too high and if you should keep shopping for a lower rate.

California Car Insurance Rates by ZIP Code

Zip Code: !

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Coverage Types

State Minimum Liability

Liability Only - $50K/$100K/$50K

Full Coverage - $100K/$300K/$100K

*Please enter valid Zip

State Minimum: Required liability coverage to drive legally in your state; some states mandate additional coverage, such as personal injury protection, uninsured motorist, underinsured motorist. Liability Only 50/100/50: $50,000 per person/$100,000 maximum per accident for bodily injury; $50,000 for property damage. Liability pays for injuries/damage you cause others. Full Coverage 100/300/100: $100,000 per person/$300,000 maximum per accident for bodily injury; $100,000 for property damage; comprehensive and collision coverage with $500 deductible. Liability pays for injuries/damage you cause others. Comprehensive and collision pay for damage to your car.

90071, Los Angeles,  For 30 Year Old  Male  (Type:  Liability - Minimum )

Average Monthly Premium

$74

Highest Rate

$100/mo

Lowest Rate

$49/mo

Compare personalized quotes from up to 20 companies in California now

Methodology

California car insurance requirements

Car insurance rates vary by state, as each state has its own laws that stipulate how much coverage you need to drive legally. Other state laws may or may not ban the use of credit or gender and other factors when rates are being set by insurance companies.

For instance, California does not allow the use of credit or gender.

Here we’ll explain California insurance laws that impact your rates, as well as those that relate to moving violations.

California laws mandate that you carry minimum liability coverage limits of 15/30/5 on your vehicle. While buying just minimum coverage means you are getting the cheapest car insurance in California, you are only covered for damage you do to other drivers’ cars and for others’ injuries.

That means your insurer won’t pay for damage to your car or for your injuries if you cause an accident.

Keep in mind that a minor accident could easily exceed minimum liability coverage limits, leaving you responsible to pay for damages not covered by insurance.

For example, if you have $30,000 in bodily injury liability coverage and you cause an accident that costs $50,000, you have to pay $20,000 out-of-pocket. If you don’t have the money on hand, your assets may be taken to cover the costs.

California auto insurance requirements include one of the lowest property damage coverage liability limits in the country at just $5,000. If you hit a car and it costs more than $5,000 to fix it, you’re on the hook for the rest of the bill.

Cheap car insurance companies for California 2021

Below you will see cheap car insurance companies in California ranked by price. Geico has the cheapest auto insurance in California, among the carriers surveyed.

The cheapest auto insurance California drivers can get is for a bare-bones policy that meets requirements to drive legally, but that’s typically not recommended unless your car is not worth much and you have no assets.

• State minimum liability requirements
• Liability limits of $50,000 per person/$100,000 per accident and $50,000 property damage
• Liability of $100,000 per person/$300,000 per accident and $100,000 property damage, with comprehensive and collision at $500 deductible

Cheapest car insurance companies for drivers in California based on your profile

• Cheapest for a driver with recent accidents: Geico
• Cheapest for a driver with speeding tickets: Geico
• Cheapest for a young driver: State Farm
• Cheapest for a senior driver: Geico

Among major companies surveyed, Geico is the cheapest car insurance for drivers in California with a recent accident, coming in at about half the price of the most expensive, according to CarInsurance.com's rate analysis.

You'll see below what you can expect to pay, on average, for California auto insurance after an accident claim. Even after a car wreck, you can save money by comparison shopping. The difference between the highest rate and lowest rate is over $2,000, so that's how much you can save.

Geico is also the cheapest insurance company for California drivers with speeding tickets. If you get a speeding ticket, chances are you'll see an increase in what you pay for car insurance, upon your policy renewal.

Typically, you'll pay more for three years. But even with a traffic ticket, comparison shopping can save you money.

For instance, you'll see that the difference between the highest rate and the lowest in the table below is $1,320, on average, according to CarInsurance.com's rate analysis.

State Farm is the cheapest car insurance company for young drivers and students in California buying a full coverage policy. Average car insurance rates by age data show that drivers typically pay higher rates until age 26 when rates begin to drop as drivers gain more experience on the road.

But even young drivers in California can save money by comparing auto insurance rates to see which company has the lowest rates, by qualifying for student discounts, and by staying on their parents’ policy as long as possible.

Geico is the cheapest for senior drivers with an average cost of $1200 a year in California.

Note:- *Average Annual Rates

How do you choose the best California car insurance company?

There’s no one best car insurance for everyone. Some drivers are willing to pay a bit more for outstanding customer service, some want the lowest rates, while others prefer carriers who can handle claims and payments through mobile apps, some prefer agents.

Identifying best car insurance in California

To identify the best car insurance companies, we reviewed top carriers in the state and rated them on claims, customer satisfaction, financial strength, online shopping and cost.

CarInsurance.com surveyed California auto insurance customers about claims handling, while J.D. Power asked customers about customer satisfaction and digital shopping experiences. A.M. Best financial ratings show a company's ability to meet its financial obligations. That means an insurer with an A or above is going to be able to pay out a claim if you file one.

In the 2021 J.D. Power U.S. Auto Insurance Study, Wawanesa received top rankings as the best car insurance in California for customer satisfaction.

Though Geico had the lowest rates among the best insurance companies in California surveyed for car insurance costs, it had the highest complaint ratio. State Farm was the most expensive, but had the lowest complaint ratio and excelled in claims handling and online shopping experience.

Notes:-

• J.D. Power 2021 Customer Satisfaction (out of 1,000, 14 companies)
• J.D. Power 2021 Digital Experience Shopping (out of 1,000, 23 companies)
• CarInsurance.com’s 2021 Claims Score (out of 5)
• Complaint score (lower is better)

Wawanesa

Best California auto insurance for:  Drivers with a clean record. Wawanesa only insures drivers with one point or less on their records, and no accidents for the past three years, which also means it has comparatively low rates.

Ranking spotlight: Wawanesa earned the top spot in J.D. Power’s customer satisfaction survey for California, but also had a higher than average complaint ratio.

Auto Club of Southern California

Best California auto insurance for: AAA Club members and those who travel a lot. You get the perks of membership, roadside assistance and extra compensation for accidents further than 100 miles away, for instance, as well as full-service travel planning and car-buying guides.

Rankings spotlight: With a low complaint ratio, the company also placed third for customer satisfaction and fifth for online shopping experience from J.D. Power, and earned a 4 for claims handling.

Geico

Best California auto insurance for: Bargain hunters, as it has the cheapest rates overall for drivers in California, and is also cheapest for drivers with tickets and accidents as well as senior motorists.

Rankings spotlight: Though it received a 4 rating from CarInsurance.com for claims and placed fourth in J.D. Power’s study, Geico had a higher than average complaint ratio.

Allstate

Best California auto insurance for: Drivers wanting special coverages and more than the common discount offerings and the option of a wide network of agents or online tools. In addition to common coverages and discounts, Allstate offers new car replacement, safe driving bonus, accident forgiveness, deductible reductions, extended vehicle repair, claims-handling guarantee and you can also earn points used for entertainment and travel discounts.

Rankings spotlight: Allstate ranked 10th in customer satisfaction study and eighth for online shopping in J.D. Power’s rankings but earned high marks (4 out of 4) for claims handling from CarInsurance.com.

State Farm

Best California auto insurance for: Young drivers, teen drivers and student drivers and those looking for special coverages and a great online shopping experience.

Rankings spotlight: State Farm had the lowest complain ratio on the best list, the highest score for claims and also ranked well for online shopping and customer satisfaction.

USAA

While USAA is only available to military members and their immediate families, CarInsurance.com considers it among the carriers in the Golden State, as well as the nation.

USAA had the highest J.D. Power customer satisfaction score in the country (880) and also topped the list of best insurers in CarInsurance.com's rankings. Military members can take advantage of specialized coverage options around deployment and storage, while also getting discounts for low-mileage.

Compare car insurance quotes in California to get the lowest rates

The most effective way to find low cost California insurance is to compare car insurance quotes in California from multiple carriers.

Your age, your driving record, the model of car you have, the severity and frequency of claims in your neighborhood and other variables are used by companies to figure out the cost of your policy.

That’s why the price for the same coverage can vary significantly among insurance companies — and why you should compare rates. You should comparison shop upon renewal, but also if you move, add a vehicle or teen driver to your policy, get married or divorced or buy a home.

Other tips for garnering cheap car insurance coverage in California includes:

• Maximizing discounts, for instance bundling your home and auto with the same company can save up to 12% on your auto costs.
• Dropping comprehensive and collision for cars that are worth less than $3,000

Hiking your deductible amount, for instance, from $500 to $1,000

When comparing car insurance California quotes, you will typically need to provide fairly basic information:

• ZIP code
• Basic personal information – name, age, birthday
• Driving history
• Current insurance company
• Information on other drivers in your household
• Vehicle make and model
• Desired coverage types, limits, and deductibles

More detailed quotes may also require:

• All vehicles VIN (vehicle identification number)
• If you own, lease or finance your vehicle
• Annual mileage
• All household driver’s license numbers
• Amount of time you’ve been insured

Once you provide the information, you will typically get a quote that is in many cases an estimate of what you will pay. Generally, you won’t get the actual rate until you lock in a policy.

If the difference between the car insurance quote and your rate is significant, you can opt out of buying the policy, though generally, the estimate will be fairly accurate.  Once you are ready to buy a policy you will for certain need to have handy specific information, such as your driver’s license number, VIN, and so on. 

Recommended car insurance coverage for auto insurance in California

When deciding how much car insurance to buy, you need to assess your particular situation.

To drive legally, you must buy at least the minimum coverage required by state laws, which means just liability insurance that pays for others' injuries and damage you cause. If you didn’t borrow money from a lender to buy your car and you don’t have a lot of money or assets to protect, that might be a wise choice.

If, however, you don’t own your car outright, you will be required to get comprehensive and collision coverage. Additionally, if you have a home and savings to protect, it’s wise to buy more coverage.

Liability Coverage

The more money and assets you have, the more likely it is that you may be sued following a car accident. Unless you are determined to pay the lowest car insurance rate possible, we recommend you buy higher than minimum liability coverage.

If your net worth is:

• less than $50,000, choose at least 50/100/50
• between $50,000 and $100,000, choose at least 100/300/100
• more than $100,000, choose at least 250/500/100

If you're leasing or financing your car, you automatically need coverage of 100/300/100 or higher.

Collision and Comprehensive Coverage

Collision coverage pays for damage to your car after an accident that you cause. Comprehensive insurance pays to replace stolen cars and for damages from vandalism, flooding, hail, fire and animal strikes.

If your car is:

• less than 10 years old, you should strongly consider buying collision and comprehensive.
• more than 10 years old, only buy collision and comprehensive if your car is worth $3,000 or more, if you couldn’t afford to replace your car if it’s wrecked, or if you just want more protection on your policy

CarInsurance.com data show that comprehensive costs an average of $151 in California yearly; collision is $997. If you buy comp and collision, check our guide to choosing a deductible amount.

Underinsured/Uninsured Motorist Coverage

Uninsured motorist coverage and underinsured motorist coverage pays for damages if you’re hit by a driver with no insurance or a driver with coverage that’s insufficient to pay for your repairs and medical expenses.

Uninsured motorist bodily injury insurance pays for your passengers' injuries caused by a driver without insurance. Uninsured motorist property damage coverage pays for damage to your car beyond what the other driver's insurance pays out.

Uninsured motorist coverage amounts should match the liability insurance limits you choose. In most states, including California, these coverages are optional.

Medical coverage (MedPay)

Medical payments coverage can help pay for the medical or funeral expenses of covered drivers and passengers after an accident, regardless of fault, up to $25,000. In most states, including California, it's an optional addition to your car insurance policy. MedPay does the following:

• Covers you and your passengers’ medical expenses
• Pays for expenses after health insurance limits are exceeded
• Offers additional protection to insured drivers who are hit by a car while walking or biking

If you and your passengers:

• Don’t have health insurance, or have a plan that doesn’t cover car accidents or has low limits, we recommend that you add medical coverage of at least $5,000 to your car insurance policy.
• Do have health insurance, it’s still a good idea to have medical coverage if you want the best protection in your policy, as it can pay out after your health benefits are maxed out.

Gap insurance

If you got a loan to pay for your car and have an accident, gap insurance pays the difference between the cash value of your car and the current outstanding balance on your loan or lease.

• If you’re financing your car, your car is less than one year old and you’ve put less than 20 percent down on it, you should buy gap insurance. If not, you don’t need gap insurance.
• If you’re leasing your car, it’s a good idea to buy gap insurance if you don't already have the coverage in your lease agreement.
• If you own your car outright, you don’t need gap insurance.

Rates in California

Below you'll see how car insurance costs compare in Los Angeles, San Francisco, San Diego and the state's other largest cities.

Used car insurance in California: Rates by make and model

It's important to budget in car insurance when you're in the market for a car. CarInsurance.com has the tools to help you do that. You can get average rates by ZIP code, and below you can see how much it costs, on average, to insure a particular make and model vehicle in California.

Enter the year, make and model and state and see how much you should budget for coverage. You can compare up to 10 cars at once.

3 ways to save on car insurance in California

Here are key ways California drivers can save money and get cheap car insurance premiums.

Compare quotes

At least once a year upon renewal, compare quotes for the identical coverage from at least three auto insurance companies. Need help remembering? Download our mobile insurance reminder app. Comparison shopping is one of the most efficient ways to save the most on insurance rates.

Bundle your policy with home insurance

California drivers who buy their car insurance and home insurance from the same company can save an average of 13%, or $316, based on a CarInsurance.com analysis. For condo bundles, it’s 12% ($270), for renters it’s 6% ($140).

Drive less and opt for pay-per-mile or usage-based insurance

If it’s possible to carpool, bike or take public transportation to work, doing so can net you big savings.

That’s because the amount you drive is one of the major rating factors that influence what California drivers pay. Your driving record and years licensed, among other factors, are also considered when providers set your rates, but in California your credit score is not.

Pay-per-mile plans, such as  MetroMile, are one option – the less you drive, the less you pay. Usage-based plans, such as Progressive’s Snapshot or State Farm’s Drive Safe & Save can earn you a discount if your driving habits prove to be safe.

Car insurance discounts in California

State law requires two types of discounts, one for good drivers and one for those over age 55.

Safe driver discount

State law mandates that you get a 20% discount if you have a clean driving record and have been licensed for three years.

Mature driver discount

If you are age 55 or older and successfully complete an approved defensive driver course, your insurance company must give you a discount, typically 5% to 15%, for three years.

California car insurance laws

California bans use of gender in pricing auto insurance

California joins five other states that have either banned the use of gender in pricing auto insurance or that require unisex pricing, says CarInsurance.com Senior Consumer Analyst Penny Gusner. Insurers have until July to submit gender-neutral auto rating plans to the state's Insurance Department for review.

Using gender is somewhat controversial as insurance companies maintain it’s a fair practice based on their actuarial research, while consumer advocates argue it is discriminatory.

"The California ban comes on the heels of another law that went into effect there this year, which allows residents to choose ‘nonbinary’ rather than ‘male’ or ‘female’ on driver licenses. I wouldn’t be surprised if other states begin to consider prohibiting the use of gender when setting car insurance rates as more people and state legislators are challenging the notion of using just ‘male’ and ‘female’ on identity forms," says Gusner.

Novice female drivers will generally be impacted the most, by paying more, if gender is taken out of the rate calculation. Female drivers from age 16 to 24 pay, on average, around $500 less (15 percent) a year for car insurance compared to their male counterparts, according to CarInsurance.com’s rate analysis.

Our rate data show from age 25 to 65 rates for males and females are within five percent of each other, with rates for males a tad cheaper from age 45 to 75. After age 75, females start again to pay less, but only around 7 percent, or $100, annually.

The use of gender in setting auto rates highlights how much state insurance laws can differ. Another example: there are three states (California, Hawaii and Massachusetts) that prevent credit history from being used to set car insurance premiums. There are also varying laws and rules on how rates, and rate hikes, are regulated.

Other states that ban use of gender in determining car insurance premium: Hawaii, Massachusetts, Montana, North Carolina and Pennsylvania. In Michigan the use of gender in setting rate is technically prohibited but reports suggest that a loophole in the law allows the practice.

Good Driver Discount

Under Prop 103, drivers who meet these conditions must receive rates at least 20 percent lower than a driver who does not meet these criteria at the same car insurance company:

• Has been licensed for at least three consecutive years
• Has no more than one point on his or her driving record for past three years
• Has not been convicted of DUI in past seven years
• Has not been in an at-fault accident for past three years

CAARP: California Automobile Assigned Risk Plan for high-risk drivers

In California, if you cannot find a car insurance company that will insure you, you can get liability coverage through the California Automobile Assigned Risk Plan (CAARP). This plan is designed for high-risk drivers who are unsuccessful in obtaining insurance from companies that sell non-standard policies.

The plan works by taking your application and assigning it to an insurance company. All insurance companies licensed in the state must accept CAARP applicants. The number of CAARP assignments is based on insurance company market share. The more policies an insurance company issues, the larger the portion of CAARP assignments it is required to take.

The rates used by the plan are the same no matter what insurance company issues the policy. The plan also offers installment options. After three years with a clean driving record, you can get out of the CAARP program and buy a standard policy.

To buy a CAARP policy, you have to work with an agent who is certified by the state to assist in getting drivers these special policies. Start by calling the number below to be paired up with a “certified producer” in your area who will help find an insurer for you. Afterwards, you and your assigned certified producer will work with the insurance company’s agent to get you an appropriate policy.

To Find a CAARP Certified Producer, call 1-800-622–0954

Insurance for low-income drivers

If you are low-income, you may be eligible for the California Low Cost Auto Insurance program, which permits lower liability limits of:

• Bodily injury liability - $10,000 person / $20,000 per accident
• Property damage liability - $3,000 per accident

The low-cost program (rates range from about $241 to $556 a year; discounts are available for those who have had a clean driving record for three years) is available to drivers who meet the following criteria:

• Have a valid California driver’s license
• Own a vehicle valued at $25,000 or less
• Be at least 19 years old and meet income eligibility guidelines

Income eligibility requirements per household effective February 2016 are:

• 1 person - $29,700.00
• 2 people - $40,050.00
• 3 people - $50,400.00
• 4 people - $60,750.00
• 5 people - $71,100.00

Pure comparative negligence

California is among the 13 states that have a pure comparative fault rule. States with pure comparative negligence laws let all drivers recover some payment for their damages, even if they are mostly to blame. For example, a driver 70 percent at fault in an accident could make a claim for damages against the other driver's liability coverage but expect to receive only 30 percent of the claim amount.

Claims

You should file a claim promptly after an accident. Your policy should state what is required of you, which may say a reasonable time period or give a specific time-frame in which to make the claim. For instance, you typically must file a stolen car claim within 30 days of the theft.

California requires an acknowledgment of all claims within 15 days. Under California law, insurance companies are required to accept or deny the claim within 40 days after receiving proof of the claim. If the claim is accepted, payment must be made within 30 days from the date settlement was reached. 

You have up to three years to file a property damage lawsuit. 

Medical claims

California law requires that you file medical claims within two years of the incident. You have up to two years after the incident to file a personal injury lawsuit.

What is the new car insurance grace period in California?

You shouldn’t assume there’s a grace period, and instead plan to have insurance in place. If you’re buying a new car, and don’t currently have insurance, you must have coverage before you drive the car off the lot.

If you have insurance and are adding the new car to your existing policy, the time you have to add the car varies. Typically, you have five to 10 days to add the car to your policy. But other companies require you to do it immediately.

If you have insurance, your existing coverage amounts generally extend to the new car. That means in some cases you may want to add additional coverages, comprehensive and collision, or raise your liability limits, to ensure your new car is sufficiently covered.

What is the California collision deductible waiver?

Drivers with collision coverage may opt for a waiver of their deductible. The California collision deductible waiver . The CDW option with a personal auto insurance policy in California doesn't charge the collision deductible when an uninsured or hit-and-run motorist, who is at fault, damages your vehicle. 

SR-22 car insurance in California without a car

If you're required to carry an SR-22 but don't own a vehicle, you need to buy a non-owner car insurance policy. An SR-22 can only be filed by auto insurance companies after you have obtained at least the state-mandated coverages as part of a car insurance policy. It can be required whether you own a car or not.

If you don’t own a car, and need an SR-22, it’s likely that a state regulatory entity is requiring you to have an insurer certify that you have the ability to pay future auto accident claims (up to the certain mandated limits).

This is done by having an SR-22 form filed on your behalf by your insurance provider. You’ll likely need to buy a policy before your driving privileges are reinstated if you’re not currently insured.

You’ll need to contact your insurance companyonce a court or state entity lets you know that you need an SR-22. Not all insurance companies file SR-22 forms, so you’ll have to check to verify yours does. The SR-22 will be on file with your state DMV or traffic authority.

States can mandate certain non-car owners to obtain car insurance and carry an SR-22 to verify financial responsibility because state agencies are aware that it’s possible for these individuals to be negligent and harm other people and their property while driving, even if the car they’re operating isn’t owned by them.

Largest car insurance companies in California

Below you'll see the largest auto insurers in the Golden State.

California car insurance resources

• California Department of Motor Vehicles Online Services
• California Department of Insurance
• Governors Highway Safety Association California Laws

The bottom line on California car insurance

You can get affordable coverage without sacrificing protection by comparing quotes, applying for discounts and maintaining a clean driver record. But even if you have tickets or accidents, comparing car insurance companies will still save you money.

Methodology: CarInsurance.com commissioned Quadrant Information Services to field rates from up to six major insurers in nearly every ZIP code of California for various driver profiles.