Best and Cheapest Car Insurance in California (Find Savings With These Top 10 Companies in 2024)

The best and cheapest car insurance in California comes from USAA, Geico, and State Farm.

USAA has the best car insurance rates in California, with prices starting at a low $24 per month. However, only military members and their families are eligible for coverage. For everyone else, the top California car insurance companies that customers recommend are Geico and State Farm.

Company	Rank	Monthly Rates	A.M. Best	Best For	Jump to Pros/Cons
	#1	$24	Military Benefits	A++	USAA
	#2	$33	Coverage Options	A++	Geico
	#3	$35	Local Agents	B	State Farm
	#4	$40	Unique Coverage	A++	Travelers
	#5	$43	Combining Discounts	A+	Progressive
	#6	$45	Customer Service	A	American Family
	#7	$47	Multi-Policy Savings	A+	Nationwide
	#8	$54	Contractor Equipment	A	Farmers
	#9	$65	Customized Policies	A+	Allstate
	#10	$70	Diverse Coverage	A	Liberty Mutual

Read on to explore your options to get the best auto insurance in California. Then, enter your ZIP code into our free comparison quotes tool to see how much you might pay.

What You Should Know

• California car insurance is typically lower than the national average
• Drivers in California looking to save should take advantage of as many car insurance discounts as possible
• USAA and Geico are our top picks for the best and cheapest car insurance in California

On this page:

• Who offers the best teen car insurance rates in California?
• Who offers the best car insurance rates for a married couple in California?
• Who offers the best senior car insurance rates in California?
• 10 Cheapest areas in California for car insurance
• 10 Most expensive areas in California for car insurance
• Minimum car insurance coverage and limits in California
• California’s uninsured motorists percentage

#1 – USAA: Top Pick Overall

Pros

• Exclusive Military Coverage: USAA’s specialized services and discounts for military members and veterans are significant for California's large military population. Learn more about USAA’s commitment to serving military families in our USAA car insurance review.
• Excellent Customer Service: Aside from offering the cheapest car insurance in California, USAA also maintains high customer satisfaction and claims handling ratings.
• Comprehensive Policies: Add coverage like roadside assistance or rideshare coverage to craft the best full coverage car insurance in California from USAA.

Cons

• Eligibility Restrictions: USAA coverage is only available to military members and their families.
• Limited Local Branches: Although it offers cheap car insurance in CA, drivers looking to interact with insurance agents might be disappointed with USAA’s lack of physical offices.

#2 – Geico: Best for Affordable Insurance Rates

Pros

• Affordable Rates: Geico has a reputation for its competitive pricing, appealing to California's diverse and budget-conscious drivers.
• Strong Digital Presence: California drivers love Geico’s user-friendly website and mobile app for easy policy management.
• Wide Range of Discounts: Take advantage of Geico’s various discounts to find cheap car insurance in California.

Cons

• Limited Local Agents: Geico has fewer insurance representatives stationed throughout California. If you want the best cheap car insurance in California from Geico, you should be comfortable with a digital experience.
• Fewer Customization Options: Despite being one of the largest insurance companies in the country, Geico lacks some popular coverage options.

#3 – State Farm: Best for Extensive Network of Agents

Pros

• Extensive Agent Network: With a strong local presence in California, State Farm offers personalized service and support to all of its policyholders.
• Variety of Coverage Options: State Farm’s broad range of coverage options, including rideshare and rental car reimbursement, make it easy to get the best car insurance in California.
• Safe Driver Discounts: State Farm offers 13 discounts, including multiple discounts for safe driving and having safety features in your vehicle.

Cons

• Higher Rates for High-Risk Drivers: If you need the cheapest auto insurance in California and you’re considered a high-risk driver, State Farm probably isn’t the cheapest option. See how much you might pay in our State Farm car insurance review.
• Slower Claims Process: The State Farm claims handling process can be slower compared to some competitors.

#4 – Travelers: Best for Excellent Customer Service

Pros

• Discount Variety: Travelers offers a wide range of discounts which can be beneficial for California families with multiple vehicles and safe driving habits.
• High Customer Service Ratings: Travelers takes its spot as one of the best insurance companies in California by offering an excellent customer service experience.
• Strong Financial Stability: Strong financial ratings from A.M. Best help make Farmer one of the best car insurance companies in California. See more ratings in our Travelers car insurance review.

Cons

• Limited Digital Tools: Drivers looking for a modern insurance experience might find Travelers’ online tools and mobile app disappointing.
• Higher Premiums: If you need inexpensive car insurance in California, Travelers might not be the cheapest option.

#5 – Progressive: Best for User-Friendly Digital Tools

Pros

• Snapshot Program: Snapshot is a usage-based insurance (UBI) program that rewards safe driving, ideal for California’s tech-savvy and safety-conscious drivers.
• Advanced Digital Tools: Progressive focuses on providing the best digital tools possible for a modern car insurance experience. Check out all the digital tools – including the Name Your Price budgeting tool – in our Progressive car insurance review.
• Loyalty Discounts: Progressive offers a variety of discounts, many of which apply automatically to your account. Drivers who maintain their Progressive policy for at least a year will automatically earn a loyalty discount.

Cons

• Unexpected Rate Increases: Many customers report initially getting affordable car insurance in California from Progressive, then having their rates increased unexpectedly later.
• Customer Loyalty Issues: Despite offering cheap car insurance in CA, Progressive struggles to retain its customers.

#6 – American Family: Best for Teen Drivers in California

Pros

• Teen Safe Driver Program: The Teen Safe Driver program helps reduce teen driving accidents, which is beneficial for California families with young drivers. Completing the program will earn you an American Family discount.
• Multi-Policy Discounts: American Family sells a variety of insurance policies, including auto, home, and renters coverage. It also offers a discount for buying more than one type of policy.
• Excellent Add-On Selection: Customize your American Family policy to get the exact coverage you need.

Cons

• Higher Rates for Some Profiles: American Family can be expensive for certain driver demographics. Learn more about coverage rates in our review of American Family car insurance.
• Indirect Policy Sales: California drivers can’t buy American Family policies. Instead, they’ll have to buy from a company connected to American Family, like CONNECT.

#7 – Nationwide: Best for Safe Drivers Savings

Pros

• Vanishing Deductible Program: Earn $100 off your deductible for every you spend claims-free, up to $500. Learn more about the vanishing deductible program in our Nationwide car insurance review.
• Wide Variety of Coverage: Nationwide offers a range of coverage options beyond standard insurance choices, like gap coverage and accident forgiveness.
• Good Customer Support: With high overall ratings for customer service, Nationwide provides its drivers with the support they need.

Cons

• Higher Rates for High-Risk Drivers: Nationwide is not a good choice if you want cheap insurance in California and have a poor driving record.
• Limited Local Offices: There are fewer physical Nationwide locations in California compared to other competitors.

#8 – Farmers: Best Selection of Discounts in California

Pros

#8 – Farmers: Best Selection of Discounts in California

• Strong Local Presence: One of the primary reasons Farmers can offer some of the best auto insurance for California drivers is that it maintains an extensive network of local agents throughout the state.
• Generous List of Discounts: Farmers has one of the best selections of discounts of any California insurance company. See all 23 discount opportunities in our Farmers car insurance review.
• Friendly Customer Service: Farmers consistently earns high ratings for its customer service and claims handling processes.

Cons

• Higher Average Rates: Farmers does not usually have the best car insurance rates in California.
• Limited Online Features: Most California customers agree that Farmers’ digital tools and mobile app are less advanced than expected.

#9 – Allstate: Best for Usage-Based Insurance

Pros

• Drivewise and Milewise: Get the cheapest insurance in California by enrolling in either of Allstate’s UBI programs. Drivewise offers a discount of up to 40% for safe habits, while Milewise is ideal for low-mileage drivers.
• Financial Strength: With high ratings for its financial stability, you can trust that your Allstate claims will be paid. Learn more in our Allstate car insurance review.
• Full Coverage Policies: Get the best auto insurance in California by adding coverage to your policy. Allstate offers a variety of valuable add-ons to meet any need.

Cons

• Expensive Coverage: While Allstate has some of the best full coverage policies, it is not known for having the best auto insurance rates in California.
• Inconsistent Customer Service: Car insurance reviews in California frequently mention varying experiences with Allstate’s customer support.

#10 – Liberty Mutual: Best for Optional Policy Add-ons

Pros

• Diverse Coverage Options: Liberty Mutual offers a wide range of coverage options, which are important for diverse driving conditions in California. Explore your options in our car insurance review of Liberty Mutual.
• Affordable Rates: While it’s not always the cheapest car insurance for California drivers, Liberty Mutual is usually an affordable coverage option.
• RightTrack: Save up to 30% by enrolling in Liberty Mutual’s UBI program RightTrack and consistently practicing safe habits on the road.

Cons

• Mixed Reviews: It may be one of the cheapest car insurance companies in California, but many customers report unsatisfying customer service experiences during their times with Liberty Mutual.
• Limited Digital Experience: Liberty Mutual’s online tools and app are less comprehensive.

California Car Insurance Rates

Despite the fact that Californians pay higher prices for many things, car insurance rates aren’t usually too expensive. Instead, California car insurance typically costs around the same as the national average. Check below to see how much you might pay for insurance from our top companies.

Insurance Company	Minimum Coverage	Full Coverage
Allstate	$65	$199
American Family	$45	$138
Farmers	$54	$167
Geico	$33	$101
Liberty Mutual	$70	$216
Nationwide	$47	$142
Progressive	$43	$132
State Farm	$35	$108
Travelers	$40	$122
USAA	$24	$74

Of course, you might see much higher or lower rates depending on what type of driver you are. For example, companies with the best car insurance for high-risk drivers will probably be different than standard coverage providers.

While rates aren’t necessarily high in California, there are plenty of ways to find even lower prices. To start, consider some of the most popular discounts our top companies offer.

Aside from finding discounts, other ways to save on your insurance include choosing a higher deductible and limiting the coverage in your policy.

The most important step in finding cheap California car insurance, however, is to compare rates from multiple companies. You only need about 10 minutes and some information to fill out a quote request form on a company’s website.

Alternatively, you can enter some personal information into a quote-generating tool online to see personalized quotes from multiple companies in your area.

California Teen Car Insurance Rates

Although car insurance does go down at age 25, teens and young adults will see higher average premiums. While this may mean that they don't yet have access to the cheapest options on the market, it does mean that they still have the ability to be insured.

Mercury Insurance Groups has the cheapest car insurance rates for teen drivers in California, slightly edging the average rates for USAA Insurance Group.

Note: This is only among the six largest car insurance companies in California by market share.

Of course, rates vary between teen boys and girls. Some programs also offer discounts for good grades and good driving behaviors. For an insured who takes advantage of these cheap car insurance discounts, other providers may edge their way up.

Insurance Company	Female Teen Rates	Male Teen Rates
AAA	$107	$123
Allstate Insurance	$184	$226
CSAA Insurance Group, a AAA Insurer	$99	$111
Farmers Insurance Group	$107	$162
Mercury Insurance Group	$96	$109
State Farm Insurance Company	$125	$147

These rates are based on profiles for 18-year-old male and female drivers in California. The car used was a 2015 Honda Civic EX. We used the minimum car insurance state limits. The rates displayed should only be used for comparative purposes as individual rates in California will differ. Rate data is provided by Quadrant Information Services.

California Car Insurance Rates for Married Couples

Again, Mercury Insurance takes the top spot for the best car insurance companies for married couples . They offer competitive rates on standard coverage. The quotes don't account for drivers who take advantage of RightTrack or other similar telematics programs.

It also doesn't account for other factors that are harder to measure in a simple quote, including which neighborhood you're in or where you have your garage located, should you keep one separate from your home. Things typically included in an average quote would be credit history, or whether the drivers have clean records.

Insurance Company	Married Couple Rates
Allstate Insurance	$210
CSAA Insurance Group, a AAA Insurer	$201
Farmers Insurance Group	$261
Mercury Insurance Group	$156
State Farm Insurance Company	$251

These rates are based on a 35-year-old married couple with two drivers and two vehicles on a policy. The cars used were two 2015 Toyota Highlander LEs. Full coverage was used with 100/300/50 limits for collision coverage and a $500 collision and comprehensive deductible. The drivers had 1 driving incident within the past 3 years, and they both have a good credit score. The rates displayed should only be used for comparative purposes as individual rates in California will differ. Rate data is provided by Quadrant Information Services.

California Car Insurance Rates for Older Drivers

The list of the best car insurance companies for senior drivers in California is once again topped by Mercury Insurance. It also offers the cheapest car insurance rates when compared to the other largest car insurers in the state by market share.

Insurance Company	Female Senior Rates	Male Senior Rates
AAA	$116	$114
Allstate Insurance	$98	$94
CSAA Insurance Group, a AAA Insurer	$120	$120
Farmers Insurance Group	$117	$117
Mercury Insurance Group	$96	$90
State Farm Insurance Company	$106	$106

These rates are based on profiles for 65-year-old male and female drivers. The car used for each was a 2015 Toyota Camry LE. Full coverage was used with 100/300/50 limits and a $500 collision and comprehensive deductible. The drivers had zero incidents within the past three years and a good credit score. The rates displayed should only be used for comparative purposes as individual rates in California will differ. Rate data is provided by Quadrant Information Services.

California Car Insurance Rates by ZIP Code

While many factor affect car insurance rates - which is why it's important to know what a driving record is and what it tracks - your ZIP code is one of the most important.

California is a large state and the average annual cost of car insurance rates can vary significantly based on the area you live in. On average, the northern California city of Mount Shasta has the cheapest rates in the state. In the table below, you can see the top ten cheapest areas in California for car insurance based on average rates for single adults.

Area	Car Insurance Rates
Mount Shasta	$127
Los Osos	$129
Yreka	$130
Weed	$130
Cambria	$131
Big Pine	$131
Greenview	$132
Bishop	$132
Avila Beach	$133
San Ardo	$134

The average rate is based on a 35-year-old single adult with one driver and one vehicle on a policy. The car used was a 2015 Toyota Highlander LE. Full coverage was used with 100/300/50 limits and a $500 collision and comprehensive deductible. The driver had one driving incident within the past three years and had a good credit score. The rates displayed should only be used for comparative purposes as individual rates in California will differ. Rate data is provided by Quadrant Information Services.

Most Expensive California Car Insurance Cities

In certain areas of California, a driver's annual premium can be expensive. It's crucial to know what kind of car insurance you really need in these areas to avoid overpaying for your insurance.

On average, the most expensive area in California for car insurance is Beverly Hills. The table below displays the top ten most expensive areas in California for car insurance based on average rates for a single adult.

Area	Car Insurance Rates
Beverly Hills	$291
Tarzana	$289
West Hollywood	$288
Van Nuys	$270
Glendale	$269
Encino	$268
North Hollywood	$266
Valley Village	$265
Camp Pendleton	$259
Universal City	$258

These rates are based on a 35-year-old single adult with one driver and one vehicle on a policy. The car used was a 2015 Toyota Highlander LE. Full coverage was used with 100/300/50 limits and a $500 collision and comprehensive deductible. The driver had 1 driving incident within the past 3 years and had a good credit score. The rates displayed should only be used for comparative purposes as individual rates in California will differ. Rate data is provided by Quadrant Information Services.

California Car Insurance Requirements

All California drivers are legally required to purchase bodily injury and property damage liability insurance as a minimum level of coverage. The state's minimum requirements, listed below, are lower than a majority of other states. Still, it's not necessarily smart to purchase just the minimum coverage to save money.

Doing so could leave you underinsured and paying out of pocket for a costly accident. Even if you don't have the lowest rates of coverage, you still might be paying less each month than if you were to end up with medical bills because of an accident. You can learn more about different car insurance coverage and what the limits mean here.

California state minimum requirements:

Liability:

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

Bodily injury liability provides coverage for injuries sustained by the other vehicle's driver and passengers if you are held responsible for an accident. This coverage also kicks in to defend you in the event of any legal claims. Property damage liability provides coverage in the event you damage someone else's property in a car accident, most commonly the other vehicle, but also things like a home or fence.

If you buy comprehensive coverage and collision insurance, your insurance will pay for your auto damage in the event of an accident. Many people also buy personal injury protection. If you have a clean driving record, your rates could still be relatively low for a good auto policy. If you have a couple tickets or accidents, your rates will go up.

Keep in mind, your driving history isn't the only factor in determining your insurance quote rates. Auto insurance companies consider many factors. Choosing to take advantage of auto insurance discounts can add up significantly.

Uninsured Motorists in California

California insurance companies are also required to offer you uninsured motorist coverage, but you aren't required to purchase it. Uninsured or underinsured motorist coverage offers protection in the event you are involved in an accident with a driver who either doesn’t have insurance or doesn’t have enough coverage.

While buying the coverage would increase your premium, it may be a wise purchase. California’s percentage of uninsured drivers is 15.2 — the 12th highest in the United States, according to 2015 data from the Insurance Information Institute. That ranks higher than the 2015 national average of 13 percent.

How Car Insurance Rates are Calculated in California

When searching and comparing quotes from the best auto insurance companies in California, it can be frustrating trying to understand how your insurance rates are calculated. A frequent question arises: why car insurance is so expensive? While there is no exact formula that each car insurance company uses when providing you a quote, there are many factors that do contribute to the price you pay for your insurance.

Among the factors that car insurers consider are:

• Your driving record
• How much you drive
• Location
• Age
• Marital status
• Gender
• Your car’s make, model and year
• Amount of car insurance coverage (required coverage and optional add-ons, such as collision and comprehensive)

One of the biggest misunderstandings when it comes to insurance rates is that the history of drivers in your area also contributes to how much you pay. People assume that high risk drivers are just irresponsible. Even if you go two years without an accident, if there were a lot of accidents near you recently, your rates might still go up. Your insurance might see you as a higher risk. Why is that the case?

Insurance companies have to consider risk as a bigger picture. If you're a responsible driver, your risk is lower. If you live on a big road where you have to pull into heavy traffic just to go to the store, you're more likely to be in an accident. This is true even if you're the best driver in the world. If you live in a neighborhood with more break-ins or other incidents, you're more likely to file a claim. Not all claims are associated with at-fault accidents.

However, this does mean that they may reward you with a safe driving discount, if you've never been into an accident, or you've taken a defensive driving course in the past to amend for your previously poor driving habits.

How to Save Money on Your Car Insurance in California

At the end of the day, we'd all like to have the best coverage at a cheap, affordable price from one of the best car insurance in California. And we'd prefer it if our policy provided us the most coverage per accident as well. While you never want to sacrifice quality to save a couple of dollars, there are some different ways you can lower your car insurance rates.

It may seem like a lot of financial responsibility to put onto the consumer's shoulders, but this way you can choose how to fit your policy into your budget, rather than be told you need coverage levels that you can't afford. For informational purposes, it also allows you to be fully aware of what is included in your policy, and provides you with financial stability as well.

Here are eight ways you may be able to lower your car insurance rates:

• Bundle your car insurance with other policies
• Consider raising your deductibles
• Pay your car insurance policy in full
• Try usage-based car insurance
• Sign up for discount programs that monitor your driving and reward you
• Monitor price changes to your policy
• Shop for better insurance rates and policy service options
• Talk to your current insurance company about loyalty discounts

Even if you already have a good price for your insurance, comparing quotes at least once a year can ensure you're not overpaying.

How Clearsurance Ranks the Best Car Insurance Companies in California

Consistent with its mission towards greater transparency, Clearsurance does not keep its rating and ranking formulas in a black box. Our algorithm analyzes a range of inputs from our independent community of insurance customers, including:

• Price
• Customer Service
• Claim service
• Likelihood to renew

The algorithm also takes into account the percentage of what customers say the company does well vs. the percentage of what customers say the company could do better.

Finally, there is also a confidence factor based upon the number of reviews a company has by product. If the total number of reviews is less than 100, then a confidence deduction is applied to the star rating. The maximum impact of this deduction occurs when there are less than 25 reviews.

Companies with 100 or more reviews, aged two years or less, receive 100% weighting (no deduction), while companies with 50 to 99 customer reviews receive a weighting of 95%, 25 to 49 reviews receive a weighting of 90% and companies with less than 25 reviews a weighting of 85%. The Clearsurance customer ratings and rankings of the best car insurance in California are derived entirely from customer reviews and ratings.

Now that you have an idea of what the best car insurance companies in California are, you should be ready to compare quotes. Enter your ZIP code into our free tool below to get started today.