Best Car Insurance in California

Key Points:

• Our picks for the best car insurance in California include Geico, State Farm, Farmers, Liberty Mutual, and Allstate.
• State Farm is a top insurer for young drivers and students because it offers them specific discounts. 
• Allstate is a great option for those who prefer in-person service, since it operates through local agents. 

According to our rate estimates, Geico stands out as an affordable insurance provider in the Golden State. That said, the best option for one driver might not be the best for another.

In this article, we’ll look at the best car insurance providers in California and give you some information on state requirements. Whenever shopping for car insurance, we recommend getting quotes from multiple providers so you can compare coverage and rates.

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What Is The Best Car Insurance In California?

We reviewed over 130 insurance companies across the United States and looked at the average cost of car insurance for full and minimum coverage. Our rate data shows the average good driver pays $2,049 per year or $171 per month for full coverage insurance. This is about 4 percent higher than the national average of $1,968 per year.

That said, minimum coverage is actually cheaper in California than in most other states. Good drivers in the Golden State pay about $624 per year or $52 per month for minimum coverage. This is about 28 percent cheaper than the national average of $798 per year.

Based on our extensive research, we ranked providers based on industry standing, availability, customer service, cost, coverage, and technology, and Geico came out on top.

California Car Insurance Company Comparison

See the table below for a side-by-side comparison of our top car insurance providers for California drivers. 

*Not all companies were included in our rate estimate data. Also, you may notice that some car insurance companies are listed above those with higher star ratings. This is because our ratings take into account nationwide factors, while our ranking here looks specifically at what insurance providers are best for car insurance in California.

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#1 Geico Insurance: Best for Basic Coverage

Full Coverage Auto Insurance Cost: $147 monthly, $1,758 yearly
Minimum Liability Auto Insurance Cost: $40 monthly, $482 yearly
California Customer Service Rating: 830/1,000
Claims Satisfaction Rating: 871/1,000

Geico is the third-largest auto insurance company in the U.S., as it wrote over $38 billion in auto premiums in 2022 according to the National Association of Insurance Commissioners (NAIC). Depending on your driving record, you can find very low rates with Geico auto insurance in the Golden State–so low, in fact, that we identified Geico as Best for Basic Coverage. Geico has an A+ rating from the Better Business Bureau (BBB), the highest possible financial strength rating from AM Best, and an above-average score from Californian respondents in the J.D. Power 2023 U.S. Auto Insurance Study. 

See how we compare Geico vs. Progressive, another large provider, in our review.

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#2 State Farm Insurance: Best Overall Provider

Full Coverage Auto Insurance Cost: $216 monthly, $2,586 yearly
Minimum Liability Auto Insurance Cost: $67 monthly, $805 yearly
California Customer Service Rating: 826/1,000
Claims Satisfaction Rating: 891/1,000

Another top provider for California auto insurance, State Farm excels in insuring students with a wide variety of discounts including the Steer Clear^® program, which encourages safe driving for drivers under 25 years old. If you’re looking for high liability coverage limits, State Farm has you protected with coverage up to 500/500/500, which is more than enough to meet California car insurance requirements and take care of most expenses in the event of an accident. A few extras from State Farm include rental and travel expense coverage, rideshare coverage, and roadside assistance.

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#3 Farmers Insurance: Best for Add-On Selection

Full Coverage Auto Insurance Cost: $180 monthly, $2,163 yearly
Minimum Liability Auto Insurance Cost: $59 monthly, $712 yearly
California Customer Service Rating: 810/1,000
Claims Satisfaction Rating: 878/1,000

Farmers Insurance is one of the nation’s oldest providers and ranks among the best car insurance companies. On top of standard types of car insurance, Farmers also offers supplemental California car insurance coverage for new car replacement, accident forgiveness, and more. The company is generous with driver discounts, including ones for good students, homeowners who bundle policies, and those who maintain a clean driving record.

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#4 Liberty Mutual Insurance: Best Customizable Coverage

Full Coverage Auto Insurance Cost: N/A*
Minimum Liability Auto Insurance Cost: N/A*
California Customer Service Rating: Not ranked in region
Claims Satisfaction Rating: 866/1,000

Liberty Mutual auto insurance is a great choice for teens and military personnel in California because of the discounts available to these groups. Some ways to save on California car insurance with Liberty Mutual Insurance include a multi-car discount and having a vehicle with safety features like anti-theft systems and airbags. You can also qualify for discounts depending on your alumni and professional connections, and customize your policy further with a variety of add-on coverage options.

*Specific cost data not available for Liberty Mutual. 

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#5 Allstate Insurance: Best for In-Person Service

Full Coverage Auto Insurance Cost: $204 monthly, $2,450 yearly 
Minimum Liability Auto Insurance Cost: $64 monthly, $765 yearly
California Customer Service Rating: 816/1,000
Claims Satisfaction Rating: 882/1,000

Unlike some other national car insurance companies, Allstate works through a network of local insurance agents to provide coverage, making it a great option for those who prefer in-person service. Allstate has an A+ financial strength rating with AM Best and an A+ rating with the BBB. There are a number of ways to get discounted rates for Allstate car insurance in California, including bundling with other policies like Allstate motorcycle insurance, home insurance, renters insurance, and more. 

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What Car Insurance Coverage Do I Need In California?

It’s important to know how car insurance works in California. The State of California requires all drivers to have at least a coverage of 15/30/5 when it comes to bodily injury liability (BI) and property damage liability (PD). Let’s break down these minimum liability limits:

• $15,000 bodily injury per person: This is the state minimum coverage requirement for bodily injury liability insurance per person in California. The word “liability” designates that this coverage is for other people in at-fault accidents, not for yourself. It will go toward covering the other party’s medical costs.
• $30,000 bodily injury per accident: This is the minimum requirement for bodily injury per accident. Let’s say you bump into a car that has three passengers. It was a hard bump, so each person claims $15,000. With $30,000, your plan will not cover the total medical cost ($45,000), and it will get used up in the order that injury claims are filed.
• $5,000 property damage liability: This minimum coverage is used to pay for repairs on the other party’s vehicle. This liability coverage is per accident, so you can imagine that $5,000 would be used up quickly in a multi-car accident.

Compared to other states, California has some of the lowest minimum requirements around. Many states require $20,000 or $25,000 in bodily injury liability while some require $50,000. Think of how fast $15,000 could be used up if you rear-ended someone and they needed an MRI and physical therapy for a neck injury.

Benefits of Higher Coverage

Let’s look at the outcomes of only going with the minimum property damage requirement in California. It’s no secret that Californian highways host lots of expensive cars. You might not drive a Ferrari, but the risk of damaging an expensive car in an accident may be higher in this state than in others.

Do you want to take a chance and only hold $5,000 in property liability? If you crash into a Porsche while cruising around San Diego or Los Angeles, the other driver can sue you for damages once that $5,000 is maxed out.

Only two other states have a $5,000 property damage requirement, and almost half require $25,000 in coverage. California’s bodily injury requirements are also on the low end: Over 30 states require $25,000/$50,000 coverage, and Maine’s requirements are double that.

If you just carry the minimum limits, you can find cheap car insurance in California. However, that might not be enough to cover you in the event of a catastrophe. For example, what if someone you hit is seriously injured and requires surgery and recovery care?

In California, drivers who aren’t at fault in an accident can sue the at-fault party up to two years later for injury claims or three years for property damage. If you lose a lawsuit like that, you’re required to cover all current and future medical expenses related to the accident.

Uninsured Motorist Coverage

If you’re considering additional coverage, you may want to look at uninsured/underinsured motorist (UI/UIM) policies. These types of auto insurance policies offer financial reimbursement when you’re in an accident and the person at fault isn’t carrying insurance or has insufficient coverage.

According to data from The Insurance Research Council, about 17 percent of drivers in California were uninsured in 2019. That’s about one in six people. California is also the most populous state in the country, with almost 40 million people as of 2020, according to the U.S. Census Bureau. 

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What If You Don’t Have Car Insurance In California?

You don’t want to go without auto insurance in California. In addition to paying the ticket from the police officer, you can be fined by the Department of Motor Vehicles (DMV) for not having car insurance.

The first time, the fine can be $100 or higher. Fines for subsequent offenses can cost anywhere from $1,000 to $2,500. You might as well buy a car insurance policy instead.

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What If You Can’t Afford Car Insurance In California?

Car insurance premiums can be expensive, especially for high-risk drivers, such as teen drivers or drivers with DUIs or speeding tickets on record. To address this program, California offers the California Automobile Assigned Risk Plan (CAARP).

The CAARP is a state program that requires most car insurance providers in California to insure a share of low-income, high-risk motorists within an assigned risk pool. Each insurance company that participates is required to cover a share of drivers proportional to its size.

You’re only eligible to apply for a CAARP plan if you haven’t been able to find car insurance on your own. That might be because insurance companies refuse to cover you based on your poor driving history or you can’t afford a high-risk insurance plan.

If you’re eligible by income, you can get a cheaper CAARP plan through California’s Low-Cost Auto Insurance Program (CLCA). If you qualify, you could get plans that come with a lower coverage minimum of 10/20/3.

Factors That Affect California Car Insurance Quotes

California is one of the few states that has outlawed car insurance companies from using customer credit scores to determine the price of premiums. Some factors that will still affect the auto insurance quotes for policyholders in California include:

• Personal information like your age, gender, and marital status
• Year, make, and model of your vehicle
• Vehicle mileage
• Your driving history
• Your exact location and where you park your car

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Final Thoughts On California Car Insurance

While California car insurance can be rather expensive, there are many insurers that offer affordable auto insurance rates in California. If you can’t afford car insurance, it’s worth looking into the CAARP program, rather than driving without insurance.

To get started comparing your free quotes to find the cheapest car insurance, enter your zip code in the tool below.

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Car Insurance In California: FAQ

Below are a few frequently asked questions about car insurance in California: 

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How We Rate Auto Insurers

Our review team extensively researches auto insurance providers to deliver informed and unbiased assessments of leading companies. We evaluate several key rating factors that are important to consumers to determine which providers are the best in the industry:

• Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
• Availability: Insurance companies that offer wider availability to consumers in terms of state availability and few eligibility requirements are more likely to meet consumer needs.
• Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
• Pricing: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
• Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer a smooth experience.
• Technology: Providers with an online quote tool, easy-to-use claims app and a usage-based insurance app score best in this category.

*Data accurate at time of publication.

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