Cheapest Auto Insurance in California (2023)

California drivers pay an overall average of $127 a month for car insurance. Insurify’s analysts expect costs to rise over the next 12 to 18 months. The end of California’s freeze on rate hikes, the state’s high risk of weather-related damage, and the rising cost of auto body parts will drive the increase.

USAA, GEICO, and Safeco consistently offer cheap car insurance in California, each with average liability-only rates of less than $80 a month. The average quote for a California liability-only car insurance policy is $90 per month, while a full-coverage policy costs $163 per month. By comparison, the national average rates are $106 for liability-only insurance and $172 for full coverage.

Here’s how to research the best car insurance companies in California to find the right one for you.

Cheapest car insurance companies in California

Finding the best car insurance company for you depends on your specific needs and circumstances.

USAA and GEICO have the lowest average quotes for liability-only coverage in the Golden State. However, your circumstances and insurance needs will play a major role in finding the best rate. Here are the cheapest car insurance companies in California for different drivers.

Best company for liability-only coverage: GEICO

Best company for full coverage: Safeco

Best company for temporary insurance: Hugo

California’s low-cost auto insurance plan

California’s Low Cost Automobile Insurance program (CLCA) exists to help drivers afford car insurance amid rising rates. Car insurance through the CLCA costs $232 to $932 a year. To be eligible for the program, you must:

• Have a valid California driver’s license

• Meet income eligibility requirements

• Own a vehicle valued at $25,000 or less

• Be at least 16 years old

• Have a good driving record or be a new driver

The program’s auto insurance meets minimum liability requirements, but drivers can add medical payments and uninsured/underinsured motorist coverage for $37 to $107 a year. Drivers can apply for the program online at MyLowCostAuto.com.

How to get the cheapest car insurance in California

Your specific needs and circumstances can influence which insurance company is the cheapest for you. Insurers consider several factors to determine your premium, including your age, driving record, type of car, and the city where you live.^[1] Here are a few tips to help you find the most affordable car insurance in California:

• Consider usage-based insurance. Some companies, like Mile Auto, may offer the lowest premiums if you only drive a little.

• Keep a clean driving record. At-fault accidents and traffic violations can raise your premiums, so safe driving can lead to significant savings.

• Take advantage of discounts. Discounts for safe driving, bundling policies, or even for driving a hybrid or electric car can cut down your car insurance quote.

• Increase your deductible. While you’ll pay more out of pocket if you file a claim, a higher deductible can significantly lower your monthly premium.

• Shop around. Comparing quotes from multiple insurers is essential because rates can vary quite a bit from one company to the next.

Cheapest liability-only car insurance in California: USAA

“Liability-only car insurance coverage pays for the policyholder’s legal responsibility to others for bodily injury or property damage,” says Mark Friedlander, director of corporate communications at the Insurance Information Institute. It doesn’t cover repairs or medical expenses for you or your vehicle.

Because it covers so little compared to other policy types, liability usually has the cheapest car insurance rates available. Here’s what you can expect to pay for liability-only insurance with different companies in California:

Cheapest full-coverage car insurance in California: USAA

A liability-only policy covers damages and injuries to others in an accident you cause, but full-coverage insurance also includes protection for your vehicle. Full coverage is generally the better choice if you drive a newer or more valuable car. It includes comprehensive coverage, which pays for damage from theft, vandalism, and natural disasters, and collision coverage, which pays for car damages from an accident, even if you’re at fault.

Here’s a look at some of the cheapest auto insurance companies for full coverage in California:

Are car insurance rates in California going to increase?

Car insurance rates have been relatively stable in California for the last few years. That’s because California’s consumer protection laws that regulate insurance rates imposed a two-year freeze on rate hikes during the COVID-19 pandemic.

But premiums will probably increase over the next 12 to 18 months.

Currently, the average annual cost of car insurance in California is $1,518, a 17% increase from 2022. This price may rise a further 4% through the end of the year, and Californians may see fewer options than before, according to Insurify’s 2023 Mid-Year Auto Report.

The combination of California’s car insurance laws and its high risk of severe weather events — more than 50% of counties are at a relatively high or high risk — have made it difficult for insurers to price policies adequately. 

Insurance companies are beginning to stop offering auto coverage in the state:

• State Farm stopped quoting California car insurance rates by phone.

• GEICO has closed its offices in the state.

• Progressive has paused advertising in the state.

The crisis also extends to property coverage. In 2023, State Farm and Allstate stopped writing new business and homeowners policies in California.

With more insurers pulling out of California and rates on the rise, it’s now more important than ever for California drivers to shop around and compare prices before buying policies.

Car insurance requirements in California

California is an at-fault state for car insurance. However, it uses “comparative negligence,” so each driver can end up shouldering part of the blame. For instance, if you sue another driver for causing an accident, the court may find that you’re 15% at fault because you were driving a little too fast at the time. In this case, you can only collect 85% of the damages.^{[2] [3]}

If you plan to drive in California, you must have auto insurance that meets the state's minimum liability requirements. Here’s the minimum coverage you need in California:^[4]

• 

  Bodily injury liability

  • $15,000 per person

  • $30,000 per accident

• 

  Property damage liability

  • $5,000

For more protection, California auto insurance companies have several optional insurance coverages you can buy:

• 

  Uninsured/underinsured motorist

  Covers you in case of an accident with a driver who doesn’t have insurance or has insufficient coverage

• 

  Medical payments coverage

  Helps pay for medical expenses resulting from an accident, regardless of fault

• 

  Collision insurance

  Covers the cost of repairing or replacing your vehicle if it collides with another car or object

• 

  Comprehensive insurance

  Protects against non-collision incidents, like theft, vandalism, fire, and natural disasters

• 

  Custom equipment

  Protects aftermarket additions or modifications you make to your vehicle, such as stereos, custom wheels, or navigation systems

• 

  Towing and roadside assistance

  Pays for help during breakdowns, providing towing, tire changes, and fuel-delivery services

• 

  Rental reimbursement coverage

  Helps offset the cost of a rental car while your car is in the shop due to a covered claim

• 

  Gap insurance

  Pays the difference between the actual cash value and the outstanding balance you owe on a car lease or loan if your car is totaled

Cheapest car insurance for drivers with an incident

Car insurance companies see you as a high-risk driver if your history includes incidents like at-fault accidents, speeding tickets, or DUIs. Higher risk can lead to higher rates for car insurance.^[1] For instance, California drivers with a DUI pay nearly double what good drivers with a clean record pay.

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Cheapest car insurance for drivers with a speeding ticket: USAA

Despite the higher risk, several insurers in California offer competitive rates for drivers with speeding tickets on their records. Note the differences in premiums between companies — the average monthly quote for a driver with a speeding ticket is around $90 with GEICO but nearly $200 with The General.

Cheapest car insurance for drivers with an at-fault accident: USAA

Accidents happen. A fender bender or more serious crash can cause your premiums to rise for at least three years, but it doesn’t mean you’ll never get affordable coverage again.^[5]

Consider starting your search for coverage after an at-fault accident with policies from the following California auto insurers:

Cheapest car insurance for drivers with a DUI: USAA

Getting cheap car insurance in California can be difficult if you have a DUI. Fortunately, several companies specialize in high-risk coverage, offering competitive rates if you have a DUI on your driving record or need to have your insurer file an SR-22 in California. To help get the lowest rate, ask for car insurance discounts and consider telematics programs to demonstrate your commitment to safer driving habits.

Cheapest car insurance for seniors: USAA

Car insurance costs tend to decrease around age 25 due to having more experience and a generally lower likelihood of risky behavior.^[1] However, seniors face rising rates due to higher risk. Fatal crash rates jump significantly around ages 70 to 74, according to the Insurance Institute for Highway Safety (IIHS).^[6] Here are the cheapest California car insurance companies for senior drivers:

Cheapest car insurance for teens: USAA

Auto insurance rates for young drivers tend to be significantly higher than those for adults due to limited driving experience and higher accident risks. In general, graduated licensing programs cause fatal crash rates to decrease over time, but they remain nearly two times higher than for drivers ages 20 and older, according to the IIHS.^[7]

To make coverage costs more affordable, consider staying on your parents’ policy and driving a safe, reliable, older vehicle. If you maintain good grades, you may qualify for a good student discount that can get you even lower rates.

California car insurance FAQs

Insurify Insights

How California Drivers Measure Up

While most drivers know that car insurance quotes are determined in part by your personal driving history, many may be unaware that rates are also impacted by the average risk of the drivers around you as well. Check out Insurify's latest analysis of driving records in California below:

Methodology

Drawing from an internal database of over 4 million car insurance applications, the research team at Insurify analyzes patterns in car ownership and driver behavior - including how California drivers measure up to their fellow motorists across the United States in areas including speeding, DUIs, and more.
Insurify Insights publishes data-driven articles, trend analyses, and national rankings each week on all factors related to cars and those who drive them.

Honda Civic

Most Popular Car in California

#39

State with the Most Speeding Tickets Rank

#26

State with the Moving Violations Rank

#15

State with the Most DUIs Rank

#26

State with the most Suspended Licenses

• Accidents in California

  While car accidents are a sadly unavoidable feature of time spent on the road, rates of accidents do vary from city to city and from state to state. California is the #17 state in the country for drivers with an at-fault accident on their driving record.

  • Rank among states: #17
  • Percent of drivers in California with an accident: 9.4%
• DUIs in California

  While driving while intoxicated is never acceptable, it’s a more common offense than many assume. California is the #15 state in the country for drivers with a prior drunk driving conviction.

  • Rank among states: #15
  • Percent of drivers in California with a DUI: 1.8%
• Reckless Driving in California

  Reckless driving refers to a specific traffic violation: when drivers willfully act dangerously in spite of the risks they’re imposing on both themselves and others. California is the #23 state in the country for drivers with a reckless driving offense on record.

  • Rank among states: #23
  • Percent of drivers in California with a reckless driving offense: 1.3%
• Rude Driving in California

  The Insurify team classifies rude drivers as those who commit one or more of the following driving offenses: failure to yield or failure to stop, improper backing, passing where prohibited, tailgating, street racing, or hit-and-run. California is the #23 state in the country for drivers with a rude driving violation on record.

  • Rank among states: #23
  • Percent of drivers in California with a rude driving violation: 1.5%
• Speeding in California

  Exceeding the speed limit can endanger others and have a serious impact on your insurance costs. California is the #39 state in the country for drivers with a speeding ticket on record.

  • Rank among states: #39
  • Percent of drivers in California with a speeding ticket: 6.9%
• Failure to Yield Rates in California

  Failing to yield the right of way isn’t just frustrating for other drivers; it’s dangerous, too. California is the #38 state in the country for drivers with a failure to yield violation on record.

  • Rank among states: #38
  • Percent of drivers in California with a failure to yield violation: 0.1%

Insurify Insights

Insurify's team of data scientists and content specialists presents Insurify Insights, a series of automotive, home, and health studies focusing on the topics that impact us all. through expert analysis of over 4 million car insurance applications and an array of top data sources, the Insurify Insights team produces new data-driven articles, trend analyses, regional superlatives, and national rankings every week. See Insurify Insights as featured in Forbes, Fox News, USA Today, NPR, and more.