Home and auto insurance are two essential types of coverage you need to protect your finances in California, whether you live in Los Angeles, San Francisco, or somewhere in between. Car insurance is required in California, and unless you pay for your house with cash, your lender will require you to have homeowners insurance as well.

Both home and auto insurance can be costly, so there’s an opportunity to save a significant chunk of change if you can find a lower rate on your homeowners or auto policy. The easiest way to check is to use Insurify to compare customized insurance quotes from several different home and auto insurance providers. Insurify users can save up to $996 on their annual car insurance premium

If you find a lower rate on a car and home insurance policy from the same provider, you may be able to save even more by bundling your policies. The Insurance Information Institute estimates that bundling home and auto insurance can save you 5 to 15 percent on your annual premium. 

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How Much Does Home and Auto Insurance Cost in California?

Data from Insurify’s proprietary database of millions of driver quotes shows that car insurance is about 13 percent more expensive in the state of California than the national average, while home insurance is about 17 percent less expensive than average.

>>> MORE: Car Insurance Cost Calculator 

Best and Cheapest Homeowners Insurance and Auto Insurance Coverage for California Residents

If you’re looking for an insurance provider that offers both home and auto insurance, we’ve got your back. We evaluated the cheapest California insurers and selected the best options based on financial strength, coverage options, bundling discounts, and customer satisfaction

1. GEICO

GEICO offers an average rate of $64 per month in California for a 30-year-old male driver with a clean record purchasing the state’s minimum liability insurance. GEICO has an A++ (Superior) financial strength rating from A.M. Best and was ranked above-average in J.D. Power’s 2020 U.S. Auto Insurance Study for California

While not ranked in J.D. Power’s 2020 U.S. Home Insurance Study, the company offers home, renters, and condo insurance. And you can save money with their multi-policy discount, though the company doesn’t estimate discount amounts. 

2. State Farm

State Farm offers average premiums of $61 per month for a 30-year-old male driver with a clean record purchasing liability coverage. The company was ranked third in J.D. Power’s 2020 U.S. Auto Insurance Study and above-average in J.D. Power’s 2020 U.S. Home Insurance Study

State Farm also has an A++ (Superior) financial strength rating from A.M. Best. With State Farm, policyholders can choose to bundle home, condo, renters, or life insurance with their auto policy. The company claims you could save up to $965 annually when bundling auto and home. 

3. Nationwide

Nationwide offers an average monthly premium of $106 across cities for a 30-year-old male driver with a clean driving record buying a liability policy. You can save up to 20 percent when you bundle your home and auto insurance with the company, in addition to other attractive discounts. Nationwide also offers renters insurance, condo insurance, and flood insurance.

Nationwide has an A+ (Superior) financial strength rating from A.M. Best. But the company was ranked below-average in both the J.D. Power 2020 U.S. Auto Insurance Study and the J.D. Power 2020 U.S. Home Insurance Study. Still, you may want to get a quote when comparing the best homeowners insurance companies for you. 

California Home and Auto Insurance: Laws and Requirements

While California law doesn’t require home insurance, your lender will likely require proof of insurance. And even if you own your home outright, a California homeowners insurance policy is certainly recommended. Maintaining an active car insurance policy in California, on the other hand, is essential to staying legal on the road. 

California Auto Insurance Laws 

According to the California DMV, the following minimum coverage limits are required for every driver in the state, unless you are self-insured or make a $35,000 deposit or bond:

  • $15,000 per person in bodily injury liability coverage
  • $30,000 per accident in bodily injury liability coverage
  • $5,000 per accident in property damage liability coverage

These minimum requirements may not be enough to protect your finances, however. You should consider purchasing additional coverage, such as comprehensive and collision insurance, to fully protect yourself. You may also want to purchase underinsured/uninsured motorist coverage, rental car reimbursement, or roadside assistance. 

California Home Insurance Laws 

In California, homeowners insurance isn’t required by law. However, the Department of Insurance recommends that Californians protect such a large asset with an insurance policy that includes the following:

  • Dwelling coverage to protect your house
  • Other structures coverage to protect detached structures on your property
  • Personal property coverage to help pay the replacement cost for stolen or damaged personal belongings
  • Loss of use coverage to help with additional living expenses
  • Personal liability coverage to help pay legal fees and judgments if someone in your family injures someone else or destroys their property unintentionally
  • Medical payments coverage to cover medical bills if someone is accidentally injured on your property

Keep in mind that your California home insurance policy won’t cover most natural disasters. If you’re worried about wildfires, consider talking to your insurance agent about adding fire insurance. The best home insurance companies also offer flood insurance and earthquake insurance for an additional charge. 

How Much Can California Drivers Save by Bundling Home and Auto Insurance

The Insurance Information Institute estimates a 5 to 15 percent reduction in your premium when combining a home and auto policy. However, it’s possible to save even more than that. For example, Allstate claims you can save up to 25 percent when bundling your car and homeowners policies, and State Farm says you could save up to $965 annually. Your savings will depend on the types of policies you bundle, where you live, what types of coverage you have, and other individual factors.

Bundling Home and Auto Insurance in California: Pros and Cons 

While bundling can save you hundreds on your annual premium, there are some drawbacks to bundling your home and auto insurance as well. 

Pros Cons
  • Huge savings on your annual premium
  • May only have one bill to worry about
  • Only need one insurance company’s app on your phone
  • If your home and car were damaged in the same event, only one deductible may apply 
  • It’s possible you could get a cheaper overall insurance rate from two separate companies
  • The top-rated auto insurance providers aren’t necessarily the best home insurance companies, so you may not get a company that’s great in both areas

 

Other Discounts California Drivers and Homeowners May Quality For 

If your auto or home insurance rates are steep, there are ways you can save beyond bundling your different insurance products.  

  • Maintain a clean driving record: Not only will this keep your insurance rates from skyrocketing because of past claims, but it could also earn you a good driving discount if you remain accident-free for three to five years. 
  • Drive safely: Some of the best car insurance companies offer safe driving programs based on your actual driving behavior. Avoid hard braking, rapid acceleration, texting, and night driving to earn a discount or rewards. 
  • Drive less: Some insurance companies will give you a discount for low mileage. 
  • Stay with the same insurance company: Both home and auto insurance providers offer loyalty discounts if you renew your policy for a certain number of years.
  • Protect your assets: Both home and auto insurance companies provide anti-theft and anti-burglary discounts for installing anti-theft devices and security camera systems. 
  • Pay online and in full: Many car and home insurance companies will give you a discount for paying annually and electronically. 
  • Upgrade your home: Adding a water safety system, getting an electrical or HVAC upgrade, installing fire alarms or sprinklers, and upgrading to a hail-resistant roof can all help you save money on your homeowners insurance

How Californians Can Save on Car Insurance and Home Insurance 

The easiest way to save on your car insurance and homeowners insurance rates is to get your free quote from Insurify for both home and auto insurance. Since every insurance company weighs your individual information differently when determining your premium, expect wildly different quotes from different companies. But that’s the magic of Insurify—it allows you to quickly identify the best deal in car insurance

With Insurify, you just need to enter your information once, and our artificial intelligence technology will do the work comparing insurance rates from up to 20 different providers. You can even play with increasing your coverage limits, changing your deductible, and adding additional coverage types to see how your rates will be impacted. 

Insurify will help you identify the greatest savings opportunities available to you, whether that’s going with separate providers for home and auto coverage or bundling to receive a multi-policy discount. 

Home and Auto Insurance in California: Quick Questions

Can I bundle home and auto insurance in California?

Yes. There are several insurance providers that will allow you to bundle your home and auto policies in California, including USAA, Nationwide, The Hartford, GEICO, Safeco, State Farm, and Allstate.

How big a discount can I get for bundling California home and auto insurance?

That depends on your provider, the types of coverage you have, what city you live in, and other individual factors. However, some car insurance companies advertise discounts of up to 25 percent. Try Insurify to compare car and home insurance policies.

What are the pros and cons of bundling home and auto insurance?

You can save money by bundling your home and auto insurance, and you’ll also only have one provider to worry about when it comes to billing and filing claims. That could mean if a covered event damages both your home and car, you would only need to pay one deductible. However, you won’t be able to choose the best and cheapest provider for each policy separately.

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Updated June 16, 2021

Lindsay Frankel is a full-time freelance writer specializing in personal finance and insurance topics. Her work has been featured in publications such as LendingTree, The Balance, Coverage.com, Bankrate, NextAdvisor, and FinanceBuzz. For the past year, she has written about car insurance for Insurify.