Auto Insurance Companies Denying Coverage in California (2026 Update)
Auto insurance companies denying coverage in California include Allstate and Farmers. California auto insurance annual rates have risen an average of $150 each year due to increased claims and weather-related risks. Fortunately, Geico still sells cheap California car insurance for $51/mo.
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Table of Contents
Feature Writer
Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...
Rachel Bodine
Licensed Insurance Agent
Jeff is a well-known speaker and expert in insurance and financial planning. He has spoken at top insurance conferences around the U.S., including the InsuranceNewsNet Super Conference, the 8% Nation Insurance Wealth Conference, and the Digital Life Insurance Agent Mastermind. He has been featured and quoted in Nerdwallet, Bloomberg, Forbes, U.S. News & Money, USA Today, and other leading fina...
Jeff Root
Updated August 2025
With claims increasing and severe weather risks, there are numerous auto insurance companies denying coverage in California.
The companies that do sell California auto insurance have higher rates, making it harder to find affordable California insurance rates on coverage.
Read on to learn more about which companies are leaving California and which companies are staying to sell insurance that meets the minimum auto insurance requirements by state. If you want to find rates with a more affordable California company today, enter your ZIP code into our free quote tool.
- Major companies like Allstate and Farmers are leaving CA
- Increased claims and weather have made business less profitable
- CA auto insurance rates have risen to offset claims
List of Auto Insurance Companies Leaving California
Which insurance companies are leaving California? Several well-known auto insurance companies are departing CA, as well as several smaller companies. Below, you can see a complete list of insurance companies leaving California.
Insurance Providers That Stopped Offering Coverage in California
| Insurance Company | Policy Type | Headquarters | Coverage End |
|---|---|---|---|
 | Commercial, Life, Personal Insurance, Retirement Services | New York City, New York | January 2022 |
 | Auto, Home, Life, Renters, Personal Umbrella | Northfield Township, Illinois | May 2023 |
 | Workers' Compensation, Businessowner's Policies, Liability Coverages | Fairfield, New Jersey | August 2023 |
 | Monoline Workers' Compensation, General Liability, Commercial Auto, Specialty Products | Raleigh, North Carolina | September 2023 |
 | Auto, Home, Life, Business Insurance | Los Angeles, California | July 2023 |
 | Auto, Home, Health | Chicago, Illinois | August 2023 |
Insurance companies that left California also offer several coverages besides auto insurance, so it is not just auto insurance policyholders that have had to find a new company. Insurance companies leaving California in 2024 and beyond also offered home and property insurance.
Customers who had home and insurance with a company will lose out on their bundling discount if their home insurance policy is canceled.
Now that you know which auto insurance companies are leaving California, why are auto insurance companies leaving California?
Essentially, auto insurance companies pull out of California every year due to the financial risks of insuring customers in California.
A high number of claims for accidents and damages from weather is making insuring California customers less profitable than in other states.
For the companies that do stay, they often increase the rates of comprehensive auto insurance to ensure they are still making a profit from California drivers.
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Impact of California Auto Insurance Claims on Rates
So, how do car insurance companies leaving California affect your claims? While companies can’t deny you a legitimate car insurance claim, they may choose to drop you after an accident that was your fault (learn more: Can your auto insurance company drop you after a claim?).
If your company doesn’t drop you, it can still raise your auto insurance rates. Below, you can see the average annual rate increases in California.
Average rates have increased substantially since 2021, and they were already expensive to begin with. If you make a comprehensive auto insurance claim or collision claim, you may see even higher rates than the ones listed above.
Comparing California Car Insurance Rates by Area
Your rates will also fluctuate depending on where you live in California. Some areas have a lower track record of claims, resulting in lower rates, while areas like San Francisco will have higher rates.
Below, you can see how expensive the best auto insurance in San Francisco is compared to other cities’ rates, which is one of the reasons there are auto insurance companies pulling out of San Francisco.
Auto Insurance Monthly Rates by City
| City | Minimum Coverage | Full Coverage |
|---|---|---|
| Anaheim | $80 | $160 |
| Fresno | $75 | $150 |
| Glendale | $85 | $170 |
| Irvine | $78 | $156 |
| Los Angeles | $90 | $180 |
| Oakland | $80 | $160 |
| Sacramento | $82 | $164 |
| San Diego | $82 | $164 |
| San Francisco | $95 | $190 |
| San Jose | $88 | $176 |
While you only need minimum coverage to meet California auto insurance requirements, full coverage will protect you from collision and storm damage (Learn More: Does car insurance cover storm damage? or Does auto insurance cover leaks?). You can also get the best windshield replacement coverage in California for even more protection.
California Auto Insurance Companies Staying in the State
With auto insurance companies pulling out of Los Angeles and other cities, you may need to find a new provider. Now that you know what insurance companies have left California, we want to go through the companies that are staying.
If you need to switch California car insurance providers, take a look at the California auto insurance companies list below to see what average rates you can expect to pay for minimum and full coverage at each company.
California Auto Insurance Monthly Rates by Provider & Coverage Level
| Insurance Company | Minimum Coverage | Full coverage |
|---|---|---|
 | $71 | $216 |
 | $51 | $157 |
 | $110 | $338 |
 | $73 | $223 |
 | $68 | $207 |
 | $55 | $169 |
 | $63 | $192 |
 | $38 | $116 |
When looking at the list of auto insurance companies in California, USAA has the cheapest car insurance, followed by Geico and Travelers. However, while USAA has some of the best auto insurance in California, it is only for military and veterans (Read More: USAA Auto Insurance Review). If you don’t qualify for USAA, find the best auto insurance for California drivers by shopping around at the top 10 insurance companies in California.
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How to Switch Auto Insurance Companies in California
If your current insurance company is one of the car insurance companies getting out of California or you want to find a cheaper rate, you must know how to cancel auto insurance and sign up for a new policy.
Luckily, finding California auto insurance online and signing up for a policy is easy if your insurance company is leaving California.
After checking that your favorite companies aren’t among the insurance companies that have left California, we recommend starting by getting quotes before committing to an insurer.
You also need to ensure you don’t have a lapse in insurance that could potentially raise your auto insurance rates.
When switching auto insurance companies in California, you must ensure your policy start date begins before your old policy's cancellation date.Dani Best Licensed Insurance Producer
If you are a high-risk driver and can’t find an insurance company willing to insure you, you must contact the California Department of Insurance.
The Department of Insurance will help you apply for high-risk SR-22 insurance through the California Automobile Assigned Risk Plan.
Insurance through the high-risk auto insurance plan will be expensive. If you have to get insurance through the high-risk program, make sure to shop around at the best auto insurance companies in California to see if you can get a lower rate.
Buying Auto Insurance While Companies Are Pulling Out of California
While the list of auto insurance companies denying coverage in California may seem discouraging once you know what insurance companies pulled out of California, there are still plenty of companies to choose from. If you need California SR-22 auto insurance, you may have to apply through the California Automobile Assigned Risk Plan to get coverage.
Shopping for quotes will ensure you get the best deal on California auto insurance, even with car insurance companies leaving California. Use our free quote tool to find the cheapest rates from California auto insurance providers.
Frequently Asked Questions
Which insurance companies are leaving California?
Wondering how many insurance companies have left California? The auto insurance companies leaving California are AIG, Allstate, AmGUARD, Falls Lake, Farmers, and Kemper.
What insurance company pulled out of California?
There has been more than one company that left California. Take a look at the list above to see what insurance companies left California. Knowing which insurance companies have left California will help you eliminate providers in your search for CA auto insurance.
Why are car insurance companies leaving California?
You know what car insurance companies are leaving California, but why are they leaving? Car insurance companies leaving California are doing so because of the high number of claims for collisions and weather damages. Weather risks are one of the non-driving factors that affect auto insurance rates, as well.
Who insures the most cars in California?
State Farm insures the most cars in CA currently.
What is the cheapest car insurance in California?
Minimum coverage is the cheapest auto insurance coverage in California. However, it doesn’t provide much financial protection (Read More: When to Buy More Than Minimum Auto Insurance).
Is Allstate auto insurance pulling out of California?
Yes, Allstate auto insurance has pulled out of California. If you need to find a new California automobile insurance company, use our free tool to shop around.
Is Esurance leaving California?
Esurance is now a part of Allstate, which is pulling out of California. Esurance leaving California is under Allstate’s direction.
What is the #1 auto insurance in California?
Geico is one of the top auto insurance providers in California and is not one of the insurance companies leaving California. You can read more about the company in our Geico auto insurance review.
Why is Geico pulling out of California?
Wondering why is Geico leaving California? If you are worried about the answer to is Geico leaving California, the good news is that Geico is not pulling out of California yet. However, it shut down its physical offices in California and is limiting home insurance policy writing.
Why did Geico leave California for home insurance? Geico has sustained heavy losses from home insurance policies due to wildfires. You won’t be able to get a new home insurance policy from Geico in California.
Is Geico in California?
If you are wondering is Geico still in California, Geico does still sell auto insurance. However, Geico left California offices and is limiting home insurance sales. Geico leaving California for home insurance means that most customers won’t be able to bundle home and auto insurance for a discount.
Is Progressive Insurance leaving California?
Is USAA auto insurance pulling out of California?
Is State Farm leaving California auto insurance?
Is Mercury insurance leaving California?
Is Liberty Mutual leaving California?
Why is it so hard to get car insurance in California?
Why are California auto insurance companies not taking new customers?
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