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 is the cheapest option for car insurance in California.

Insurers consider a wide variety of factors when setting a premium including your driving record, credit score, age and marital status as well the vehicle. 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. “Florida, for example, is prone to extreme weather like hurricanes and its car insurance costs are consequently much higher.”

Insurance companies crunch all this data with proprietary algorithms, which can result in dramatic differences in premium quotes.

The numbers highlight these differences. Farmers is the most expensive insurer in California with an average premium of $3,035 a year.

On the other hand, as mentioned above, the average premium for GEICO policyholders in California is $1,919 a year. Mercury Insurance had the second cheapest coverage in California at $2,031 and Progressive rounded out the top three cheapest at $2,179.

Below is a list of the cheapest full-coverage car insurance rates in California for a 40-year-old driver of a 2023 Honda Accord LX.

Cheapest full-coverage insurance in California

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 – I am going to recommend and quote at least 50/100/100. Depending on their age, income and profession, 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

Insurance companies consider your age when setting a premium and teens and young adults pay more for coverage as statistics show that young drivers, because they are inexperienced, have more accidents and claims.

Regardless of your age, in California, GEICO is the most affordable coverage with an average rate of $1,919 a year.

As teens transition into young adults and get more experience under their belt rates start to drop. By their mid to late-20s – assuming they keep their record clean – driver rates should stabilize and then stay stable until the driver moves into their 70s when rates will start climbing again.

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

Insuring a teen is always expensive; statistics show that inexperienced teen drivers get into more accidents and file more claims than more experienced drivers. In California, the best insurer for teen drivers is GEICO with an annual premium of $4,836 or $403 a month. State Farm was second most affordable at $4,961 a year or $413 monthly while Travelers was number three at $5,079.

While teens are expensive to insure, there are a few ways to save some money. Most insurers offer a good student discount so if your teen is carrying a B average or above you should ask for a discount. Putting them in an older vehicle will also lower your insurance costs.

The chart below shows average premiums for teens.

Average rates for teens in California

Average cost of car insurance in California

In California, the average premium is $2,416, which makes California the 3^rd most expensive state for coverage.

All states have large metropolitan areas, which will always push up the cost of insurance as more vehicles on the road lead to more accidents and claims. A high crime rate will also impact rates.

“If a state has a higher rate of car insurance claims associated with vandalism or car theft, prices are usually higher because car insurance companies view insuring these cars as a higher risk for them,” says Chong Gao, director of product management R&D at Mercury Insurance.

The chart below is the average rate in each state for a 40-year-old driver of a 2023 Honda Accord LX.

Average rates for a 40-year-old in Idaho

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?

The cheapest ZIP codes for car insurance in California tend to be in rural areas where there are fewer people and cars which leads to lower accident and claim rates. Mount Shasta has the most affordable ZIP code in California with an annual premium of $1,832.

Least expensive ZIP codes in California

Cheapest car insurance for high-risk drivers in California

Drivers with a speeding ticket, DUI or at-fault accident on their record are often considered high-risk drivers and end up paying more for coverage. The increase can range from reasonable for a speeding ticket to a big leap in costs for a DUI.

The data showed that a speeding ticket will result in a 59% increase, pushing the average rate to $3,512. Speeding tickets will typically impact your premium for at least three years.

An at-fault accident will raise your rates by 98% to an average of $4,366. A DUI will result in the biggest increase, sending your premium up 265% to an average of $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 all drivers to carry a minimum amount of liability coverage to drive legally. California requires drivers to carry 30/60/25 in liability coverage, which translates into:

• $30k for bodily injury and $50,000 for death for a person involved in an accident
• $60k for bodily injury and $100,000 for death for two or more people in an accident
• $15k for property damage for a single accident

These required minimums are fairly average when compared to other states. However, these minimums are rarely enough coverage if you are involved in a serious accident. Once your coverage levels are exceeded, you will be on the hook for any remaining damage.

Experts typically recommend carrying 100/300/50 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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