The best, cheapest car insurance in California

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Best car insurance company in California

Drivers in California pay an average of $2,416 a year, or $201 per month, which is the 3^rd highest in the country, according to our research.

Actual car insurance rates vary by company, and GEICO, Progressive, and others continue to offer some of the most competitive premiums in California.

When it comes to the best cheap car insurance in California, GEICO is our No. 1 choice followed by Progressive and Auto Club Enterprises (AAA).

GEICO scores well with third-party rating organizations and it has an average premium in California of $1,919 a year, or $160 a month, which is roughly $497 less than the California average.

The best car insurance companies in California

How we picked the top auto insurance companies

When choosing the top car insurance companies in the state, we not only looked at the average cost of coverage but also J.D. Power customer satisfaction scores, AM Best financial strength ratings and National Association of Insurance Commissioners (NAIC) complaint rankings. National averages were used where state/regional data was not available.

For each of the four metrics, we gave companies in each state from 1 to 5 (5 being the best) based on how they performed in each category. Those components were then given the following weights to arrive at an overall star rating.

• Premiums: 25%
• JD Power: 30%
• AM Best: 25%
• NAIC: 20%

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Cheapest car insurance in California

GEICO has the lowest average rate in California at $1,919 a year or $160 a month.

Mercury Insurance is the next most affordable at $2,031 annually and Progressive at $2,179. While these insurers had the cheapest average premiums, there are plenty of other options for coverage in the state.

Insurers consider a wide variety of factors when setting a rate and use proprietary algorithms which can result in dramatic differences in premium quotes. Where you live also affects rates.

“States that have a higher rate of severe weather that damages cars or helps cause accidents will typically have higher rates,” says Chong Gao, director of product management R&D at Mercury Insurance. “California, for example, is prone to extreme weather like hurricanes and its car insurance costs are consequently much higher.”

The data shows how shopping around for coverage can result in savings. While GEICO had the lowest average rate at $1,919, Farmers was the most expensive at $3,035.

Below are the cheapest car insurance rates by state. To calculate these rates, we used data for a 40-year-old driver of a 2023 Honda Accord LX – one of the most commonly insured vehicles – to provide a consistent and realistic comparison across states.

Cheapest full-coverage insurance in California

Auto insurance premiums vary significantly from city to city, so drivers need to be sure they’re getting the best deal. Insure.com has done the research for you. Get more information on auto insurance rates by city below.

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Full coverage car insurance in California

As noted, the rates above are for full coverage car insurance. Full coverage car insurance adds collision and comprehensive to your liability insurance coverage, so your vehicle is repaired or replaced after an incident.

Full coverage insurance includes collision and comprehensive which will pay to repair your vehicle. Collision covers damage caused by a collision with another vehicle or object while comprehensive repairs damage done by perils such as fire, theft, flooding, vandalism, and more.

Learn more about liability, collision and comprehensive coverage.

Shopping for car insurance in California

Shopping around for coverage is a great way to make sure you are getting the best rates on your auto insurance. Experts often tell consumers to shop for insurance yearly. But that doesn’t necessarily mean you should be looking to switch.

“I recommend that people stay with the same insurance company, as they tend to get a better rate when they have been with the same carrier for more than 12 months. The more tenure you have with a carrier, the more potential there is to earn benefits,” says Tim Bottini, a Country Financial insurance agent based in St. Louis. “The carrier can also review your claims history and provide information about applicable discounts.”

But make sure you are comparing like coverage levels and deductibles.

“It is extremely important to make sure you start off with an apples-to-apples comparison,” Bottini says. However, if a person has low limits, say 25/50/25 – limit per person/per occurrence/limit for property damage – he will recommend higher coverage.

“Depending on their age/income and profession,” he says, “I would quote higher limits to protect their net worth and earnings potential.”

Bottini also says people can save money on their car insurance by keeping their credit score up, following the speed limit and placing both home and auto insurance with the same carrier.

Cheapest car insurance in California by age

Statistics show that young drivers, because they are inexperienced and tend to take more risks, have more accidents and claims, all of which lead to higher premiums for younger drivers.

“Data indicates that teenagers and seniors are riskier drivers, so they often pay more for auto insurance than other policyholders in different age groups,” says Chong Gao, director of product management R&D at Mercury Insurance. “For teenagers, the lack of driving experience is a significant factor that impacts their rates; younger drivers with little experience behind the wheel tend to pay higher insurance premiums.”

GEICO is the cheapest insurer in California for teens.

Age factors into a premium as the data clearly shows. Teens pay the highest rates by far with the lowest premium coming in at $4,836 which is 150% more expensive than the most affordable coverage for seniors at $1,935 and 91% more than young drivers’ best rate of $2,531.

Rates start to drop, assuming their driving record stays clean as teens move into their young adult years and tend to stay stable until a driver gets into their 70s when rates will go up a bit.

Cheapest car insurance for senior drivers in California

According to our data, senior drivers pay roughly 31% more than middle-aged drivers.

Seniors tend to pay slightly higher car insurance rates than younger drivers. In California, the cheapest insurance company for senior drivers is GEICO at $1,935 a year or $161 a month. Mercury Insurance grabbed the second-place spot with premiums running $2,072 annually or $173 a month, State Farm was third at $2,252.

Seniors pay higher rates thanks to age-related issues. They often suffer from vision and hearing issues as well as slowing reflexes and medical issues. This all leads to more accidents and claims, which pushes up the cost to insure seniors.

The chart below shows the average premium for senior drivers.

Average rates for seniors in California

Car insurance for young drivers in California

While young adults pay less than teen drivers, they still pay more than older more experienced drivers. The best choice for young adults (early 20s) in California is GEICO with an annual rate of $2,531 or $211 a month.

Travelers had the second cheapest premium at $3,370 a year followed by Mercury Insurance was third at $3,393.

If young drivers keep their driving record clean, their rates will drop down as they move out of their 20s.

The table below shows the best insurers for young drivers in California:

Average rates for young drivers in California

Car insurance for teen drivers in California

Although teen drivers always pay much higher premiums than other driver groups, GEICO offers teens the cheapest rate at $4,836. Teen drivers are inexperienced and are big risk takers which results in more accidents and claims, pushing up the cost of coverage.

“Teenagers are more likely to be involved in accidents than older drivers because of their lack of experience. This increased risk results in higher insurance rates because insurance companies regard them as high-risk drivers,” says Goronga. “Teenagers are also more likely to engage in risky driving behaviors, such as distracted driving or speeding, increasing their chances of being involved in an accident.”

State Farm has the second most affordable premium at $4,961 a year followed by Travelers at $5,079 annually.

Our data clearly shows how dramatic premium differences can be for teens and how important shopping your coverage is when trying to find the best rate for your specific risk factors. While GEICO was the most affordable at $4,836, Nationwide was the most expensive with an annual premium of $9,683.

There are a few ways to save some money when insuring a teen. Ask your insurer for a good student discount if they are carrying a B average or better. Putting your teen in an older vehicle that you wouldn’t repair after an accident can help save some money by dropping collision and comprehensive. Just keep in mind that doing so means you’ll be on the hook for any damage if they’re in a crash.

The chart below shows average premiums for teens in California:

Average rates for teens in California

Average cost of car insurance in California

The average cost of car insurance in California is $2,416, which makes it the 3^rd most expensive state in the country behind Louisiana and Florida.

Metropolitan areas – and all states have them – equals lots of drivers, which often leads to car crashes and claims.

“States with a higher population density have more cars on the road and thus more accidents and claims, increasing insurance rates. A more rural state like Iowa will have significantly lower average yearly car insurance costs compared to a highly metropolitan state like California,” says Gao.

Below are the cheapest car insurance rates by state. To calculate these rates, we used data for a 40-year-old driver of a 2023 Honda Accord LX – one of the most commonly insured vehicles – to provide a consistent and realistic comparison across states.

Average rates for a 40-year-old in California

Which California ZIP codes are most expensive for car insurance?

Car insurance costs in California can vary significantly based on your location, as insurers consider the ZIP code where your vehicle is primarily parked when determining your premium.

Our data shows that the Tarzana area came out as the most expensive with an average annual premium of $3,430. Panorama City was No. 2 and Beverly Hills was No. 3.

Here are the most expensive ZIP codes in California for car insurance:

Most expensive ZIP codes in California

Which California ZIP codes are the cheapest for car insurance?

Rural areas are almost always cheaper than urban areas when it comes to car insurance. Fewer people and cars on the road mean fewer accidents and claims. The cheapest zip code for car insurance in California is in Mount Shasta with an annual premium of $1,832.

Least expensive ZIP codes in California

Cheapest car insurance for high-risk drivers in California

If you have an at-fault accident, DUI or speeding ticket on your driving record, your insurer may consider you a high-risk driver and will push up the cost of your coverage.

A speeding ticket increases the average premium to $3,512 and will stay on your record and impact your premium for three years.

If you are responsible for an accident, your rates will push the average cost of coverage to $4,366.

A DUI is considered a major violation and will raise the average premium to $8,047.

The table below shows the average increase for drivers with an incident on their record:

How much rates increase in California after a traffic incident

Minimum car insurance requirements in California

Most states require drivers to carry a minimum amount of liability car insurance, and California is no exception. Drivers are required to carry 30/60/25 in liability coverage, which translates into:

• $30k for injury/death per person
• $60k for injury/death per accident
• $15k for damage to property

But state-required minimums are rarely enough coverage in a serious accident. If you cause an accident and the damages exceed your coverage levels, you will need to cover the damages out of pocket.

The most common required coverages are $25,000 bodily injury liability per person, $50,000 bodily injury liability per accident and $25,000 property damage.

Experts typically recommend carrying 100/300/100 as a minimum liability coverage level.

What our expert says

Q: How does a state’s population affect car insurance rates?

Chong GaoDirector of product management R&D at Mercury Insurance.

“States with a higher population density have more cars on the road and thus more accidents and claims, increasing insurance rates. A more rural state like Iowa will have significantly lower average yearly car insurance costs compared to a highly metropolitan state like California.”

Mark Vallet

Contributing Researcher

 

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Mark Vallet is a Denver-based insurance expert and journalist with 18 years of experience covering the car insurance industry. He specializes in breaking down complex insurance topics into clear, expert-backed insights that help drivers make smarter insurance coverage decisions.

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