California Auto Insurance (2023)

Drivers in the Golden State typically pay about 24% more for their car insurance than the rest of the country. Although there are many causes for higher insurance rates, the primary reasons are heavier traffic, higher theft and vandalism rates, and rising car repair costs.

While the company with the best rates for you depends on your unique circumstances, California drivers should consider companies like State Farm, Wawanesa, and USAA. There are many factors that affect your insurance rates, but these companies generally offer the most affordable rates.

Read on to learn more about car insurance in California, including where to find the cheapest rates. Then, compare quotes with as many companies as possible to find your best price.

Which insurance companies in California are the cheapest?

As the third-largest state in the country, there are a lot of companies in California that offer coverage to the state’s nearly 40 million residents. However, not all companies offer affordable insurance rates in the Golden State.

The cheapest insurance companies in California tend to be Mercury, Wawanesa, Progressive, Geico, and State Farm. However, insurance companies base your rates on many factors, so it’s possible to find lower rates elsewhere.

You can explore the average cost of California car insurance below, but remember that your rates might be different. Factors like age, your driving record, and ZIP code make your rates higher or lower. You can find out more about the best auto insurance by age before buying a policy.

How much does insurance cost in California?

Unfortunately for Californians, cheap car insurance is more difficult to find than in other states. The average California driver can pay up to 24% more for car insurance than the national average.

Californians can expect to pay about $56 a month for minimum insurance and $182 for full coverage.

Why do Californians pay more for car insurance? There are several reasons for increased rates, including the following:

• Population density and heavy traffic
• Natural disasters, including wildfires and earthquakes
• Rising healthcare costs
• Expensive car repairs
• Uninsured drivers
• High rates of theft and vandalism

Your location plays an integral role in your insurance rates. For example, residents of Mount Shasta have some of the cheapest rates in the state, while Los Angeles and San Francisco residents see higher prices. It’s still possible to find cheap auto insurance in San Francisco, though.

Average Annual Rates by Company in California

Before you delve into the individual factors that affect your car insurance, you can get an idea of which companies offer the lowest rates by looking at their average prices. You can compare the average rates for California’s biggest insurance companies below.

While Wawanesa is often the cheapest option for California auto insurance, it’s only available in California. If you prefer to shop with a national company, Geico and USAA are excellent options, and you can find more about USAA in our USAA auto insurance review.

Minimum Insurance Rates in California

When you need cheap insurance in California, minimum insurance is the most affordable option. Minimum insurance is the amount of coverage California requires all drivers to carry and includes the following:

• Bodily injury liability — $15,000 per person
• Bodily injury liability — $30,000 per accident
• Property damage liability – $5,000 per accident

Although you don’t need it, California requires car insurance companies to offer uninsured/underinsured motorist coverage. You can decline the offer, but your insurance company will need your decision in writing.

Although minimum insurance is your cheapest option for California car insurance quotes, rates vary by company. You can get an idea of how much you’ll pay for minimum insurance below.

Top Auto Insurance Companies Average Monthly Minimum Coverage Rates

Insurance Company	Average Minimum Coverage Rates
Allstate	$61
American Family	$44
Farmers	$53
Geico	$31
Liberty Mutual	$68
Nationwide	$44
Progressive	$39
State Farm	$33
Travelers	$37
Average	$45
Get Your Rates Quote Now			#blank#

USAA is often a cheap option for car insurance, regardless of where you live. However, only military members and their families are eligible for coverage. If that doesn’t apply to you, Geico and Progressive are solid options.

If minimum coverage is not enough for you, consider adding optional coverages like 

• Comprehensive
• Collision
• Loan/lease payoff
• Medical and funeral services
• Rental car reimbursement
• Roadside assistance

Adding these coverages will raise your insurance rates, but you’ll be protecting yourself and your vehicle from just about every possible scenario.

Full Coverage Rates in California

California does not require drivers to get full coverage, but you might need it if you have a car loan or lease. It’s also a good idea to have full coverage if you can’t afford to replace your car or have a new, expensive vehicle.

Full coverage includes liability, comprehensive, collision, uninsured/underinsured motorist, and medical payments. It offers better protection for your vehicle, but it costs much more than minimum insurance.

Your cheapest option for full coverage in California might be Mercury, Geico, or Progressive, each with an average monthly rate of about $150.

While full coverage protects your car from most of what the road can throw at it, insurance companies often offer add-ons to increase your coverage. Here are some popular add-ons in California:

• Rental car reimbursement
• Emergency roadside assistance
• Custom parts and equipment
• GAP coverage

Different types of auto insurance add-ons offer valuable protection, but you should only buy what you need. Add-ons can dramatically increase your monthly rates.

California Car Insurance Rates After a DUI

Depending on the severity, a traffic violation can significantly increase your insurance rates. Of all types of violations, DUIs come with some of the stiffest rate increases. A DUI can increase your rates by more than 70%, and Californians pay more than double the national average.

Some insurance companies will drop you after even a single DUI, but most will continue to work with you. Even if you don’t need high-risk auto insurance, your rates will still be significantly higher after a DUI.

Wawanesa might be your best option if you have a DUI since it has significantly lower average rates. Competitors like Geico and Progressive also have lower rates, but they are not nearly as affordable as Wawanesa.

While increased car insurance rates can be expensive, it’s not the only thing you’ll have to worry about after a DUI. California imposes the following penalties after a DUI:

• First offense — up to six months in jail, $1,000 fine, license suspension for four months, six months with an ignition interlock device (IID) in your car, and nine months in DUI school.
• Second offense — up to one year in jail, $1,000 fine, license suspension for two years, one year with an IID, and 30 months in DUI school.
• Third offense — up to one year in jail, $1,000 fine, license suspension for three years, two years with an IID, and 30 months in DUI school.
• DUI with an injury — up to one year in jail, $5,000 fine plus restitution, license suspension for three years, and 30 days in DUI school.
• Felony DUI — up to three years in prison, $1,000 fine, license suspension for five years, and 30 months of DUI school.

Although DUI charges have serious consequences, your rates won’t be high forever. As long as you keep your record clean of future incidents, your rates will return to normal after about seven years. You can also shop for the best auto insurance for drivers with a DUI if you’re struggling to find coverage.

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Which cities in California have the cheapest rates?

Some of America’s most iconic cities are in California, including Los Angeles and San Francisco. Finding cheap car insurance in California can be difficult when you live in a big city. 

Auto insurance in Los Angeles is more expensive than in smaller cities due to heavy traffic and expensive cars. Nearby, car insurance in Orange County is often pricier because of car thefts and congested streets. Meanwhile, auto insurance in San Francisco is more expensive because of the large number of uninsured drivers in the city.

What insurance discounts can you get in California?

Car insurance companies offer a variety of car insurance discounts to help drivers save money. Since California is so expensive, Californians should take advantage of as many of the following discounts as possible:

• Good student for maintaining a 3.0 GPA
• Safe driver for staying accident-free
• Bundling policies with the same company
• Low mileage if you drive less than the average American
• Anti-theft devices
• Driver education course completion
• Paid in full if you pay for your entire policy at once

California also offers the California Low Cost Automobile (CLCA) insurance program to help low-income drivers get affordable coverage. To be eligible, you must be at least 16 years old, have a driver’s license, and drive a car valued at less than $25,000. You also must meet income eligibility, which depends on your household size.

Do you need SR-22 car insurance in California?

California requires SR-22 auto insurance after a variety of traffic incidents. It’s not actually a type of insurance but a form you must submit to prove you meet California’s minimum insurance requirements.

The state of California might require you to submit SR-22 insurance after the following violations:

• Getting too many points on your license
• After an at-fault accident
• Driving with a suspended license
• Driving without insurance
• After a DUI conviction

You’ll be responsible for submitting SR-22 insurance for about three years. However, you won’t have to do it all by yourself — your insurance company will file it for you.

How do you get SR-22 car insurance in California?

SR-22 car insurance in California is more expensive than a standard policy because companies consider it a red flag.

However, you’ll still be able to find the right coverage with a little searching. The process is easier if you already have insurance. Your company might drop you as a customer if you need SR-22 insurance, but most companies will work with you.

To add SR-22 filing to your policy, simply contact an insurance representative and let them know what you need.

If you don’t have a policy, getting quotes works the same as if you need a standard policy. When you request a quote, make sure to let the company know you need SR-22 insurance.

California usually suspends your license until you submit proof of SR-22 insurance. Meeting the minimum insurance requirement can be more difficult if you don’t have a car. If you find yourself in this situation, consider a non-owner policy. Non-owner auto insurance allows you to prove financial responsibility to the state and covers you in any car you drive.

As a bonus, non-owner insurance is typically 15% cheaper than a standard policy.

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Find the Best Car Insurance in California Today

Although the average car insurance cost in California is higher than the national average, there are ways to save. Shopping at companies with the lowest average rates — like Wawanesa, USAA, and State Farm — will help you find the cheapest insurance in the Golden State. Read our Wawanesa auto insurance review for more information on the company.

One of the most critical aspects of finding affordable insurance is comparing quotes. Make sure to look at as many companies as possible before you sign up for insurance.

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