Average cost of home and auto insurance in California
Insurance rates in California tend to run higher than the national average due to wildfire exposure, the high cost of living, and dense urban driving conditions.
The average monthly premium for car insurance in California is $147, while the average monthly rate for homeowners insurance with $300,000 in dwelling coverage is $167. This is compared to the U.S. national average of $142 for car insurance and $239 for $300,000 in home insurance coverage.
Auto insurance rates in California are also often higher than in nearby states, like Nevada and Arizona, due to stricter regulations and heavy traffic congestion in cities like Los Angeles, Anaheim, and San Francisco.
California’s car insurance market is also more tightly regulated than most states, requiring insurers to obtain approval for rate changes under rules enforced by the California Department of Insurance.
Home insurance premiums in California are also elevated due to wildfire risk, high property costs, and the expenses of materials and labor required for repairs. But wildfires in particular have led some insurers to restrict new policies or tighten underwriting in high-risk areas, according to the Insurance Information Institute and researchers at UC Berkeley’s Terner Center.[1]
Coverage Type | Average Monthly Cost in California |
|---|---|
| Car insurance (full coverage) | $199 |
| Home ($300K dwelling) | $167 |
Best home and auto insurance companies in California
The best home and auto insurance companies in California are State Farm, Allstate, Farmers, USAA, and Travelers. We selected them based on pricing, bundling discounts, and customer satisfaction metrics, including customer experience scores from J.D. Power’s U.S. Home Insurance and Property Claims Satisfaction studies and consumer complaint data from the National Association of Insurance Commissioners.[2]
The table below reflects home insurance companies and auto insurers that consistently balance price, coverage, and availability in a market shaped by wildfire risk, regulation, and tightening underwriting.
Here, you can see the specific ways each insurer stands out in California.
Insurance Company | Best For | IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | Bundling Discount |
|---|---|---|---|
| USAA | Military families | 9.1 | Up to 10% |
| State Farm | Overall value | 9.3 | Savings vary |
| Allstate | Add-ons and discounts | 8.9 | Up to 25% |
| Farmers | Strong local expertise | 8.5 | Up to 10% |
| Travelers | Flexible coverage | 8.5 | Up to 15% |
USAA: Best for military families
| User Reviews | 4.9 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.1 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $65/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $143/mo |
USAA's score | Industry average | |
|---|---|---|
| Coverage options | 4.9 | 3.2 |
| Customer service | 4.8 | 3.6 |
| Discounts | 4.9 | 2.9 |
| Policy transparency | 4.9 | 3.1 |
| Value | 4.9 | 2.9 |
Customers appreciate the insurer’s reliable customer service and claim handling but express concerns about high rates and frequent price increases. Some also find the insurer’s security protocols and communication methods frustrating.
USAA consistently ranks near the top of J.D. Power customer satisfaction studies and offers some of the cheapest home and auto insurance bundles in California for eligible military families, including competitive rates in high-cost urban markets, like Los Angeles and San Diego.[2]
Excellent service
Low average rates
Strong financial ratings from AM Best[3]
Must be a current or former member of the military
No 24/7 customer service
Smaller in-person agent network than many competitors
State Farm: Best for overall value
| User Reviews | 4.0 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.3 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $99/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $221/mo |
State Farm's score | Industry average | |
|---|---|---|
| Coverage options | 4.1 | 3.2 |
| Customer service | 4.3 | 3.6 |
| Discounts | 3.9 | 2.9 |
| Policy transparency | 3.9 | 3.1 |
| Value | 3.7 | 2.9 |
Customers appreciate the insurer’s excellent customer service and personal attention but dislike the high prices and frequent rate increases. They also express frustration with the claims process.
State Farm offers competitive car insurance rates and comprehensive homeowners insurance coverage throughout California, including some wildfire-prone regions where coverage availability has tightened in recent years. The insurer also maintains one of the largest local agent networks in the state and offers strong multi-policy discounts for drivers and homeowners who bundle coverage together.
Strong bundling discounts
Large insurance agent network
High customer satisfaction[2]
Limited online tools
May restrict coverage in high-risk areas
Fewer niche add-ons
Allstate: Best for coverage options
| User Reviews | 3.8 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.9 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $90/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $198/mo |
Allstate's score | Industry average | |
|---|---|---|
| Coverage options | 3.8 | 3.2 |
| Customer service | 3.8 | 3.6 |
| Discounts | 3.8 | 2.9 |
| Policy transparency | 3.6 | 3.1 |
| Value | 3.3 | 2.9 |
Drivers appreciate the friendly customer service and efficient claims processing, but many find the rates too high and experience unexpected price increases. Some also report poor communication from agents.
Allstate stands out for its customizable endorsements and optional coverages, such as water backup coverage, identity theft restoration, and yard and garden coverage. It also offers protection for high-value homes, a common need along California’s coast. It typically scores below the industry average in J.D. Power’s Home Insurance and Property Claims Satisfaction studies, though it remains competitive due to its coverage options and available discount programs.[4]
Many add-ons
Strong digital tools
Good discount variety
Higher premiums than some competitors
Mixed claims satisfaction[4]
Fewer local insurance agents in some areas
Farmers: Best for California homeowners
| User Reviews | 3.8 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.5 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $92/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $204/mo |
Farmers's score | Industry average | |
|---|---|---|
| Coverage options | 3.7 | 3.2 |
| Customer service | 3.7 | 3.6 |
| Discounts | 3.4 | 2.9 |
| Policy transparency | 3.5 | 3.1 |
| Value | 3.2 | 2.9 |
Customers appreciate the helpful agents and good initial quotes but dislike the consistent rate increases and lack of senior discounts. Some also reported issues with claim handling and communication.
Farmers Insurance has deep roots in California and offers specialized insurance coverage for wildfire risks and high-value homes, as well as customizable dwelling protection. The insurer also maintains a large local agent network throughout the state and provides several optional endorsements designed for homeowners in higher-risk or higher-cost housing markets.
Local expertise
Customizable policies
Strong agent support
Higher premiums than some competitors
Stricter underwriting
Fewer discounts
Travelers: Best for flexible policies
| User Reviews | 4.6 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.5 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $105/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $232/mo |
Travelers's score | Industry average | |
|---|---|---|
| Coverage options | 4.6 | 3.2 |
| Customer service | 4.6 | 3.6 |
| Discounts | 4.3 | 2.9 |
| Policy transparency | 4.6 | 3.1 |
| Value | 4.3 | 2.9 |
Customers appreciate the insurer’s communicative customer service and efficient claims process. But they’re dissatisfied with the consistent and sometimes significant price increases, even for those with clean driving records.
Travelers offers flexible coverage limits and strong multi-policy insurance discounts, making it a good option for bundling home and auto insurance. It performs around the industry average in J.D. Power’s Property Claims Satisfaction Study, reflecting solid but not standout customer satisfaction scores.
Flexible insurance policies
Solid discounts
Wide availability
Average customer satisfaction scores
Fewer local insurance agents
Less brand recognition
Our editorial team analyzed regional and national auto insurance companies that sell home and auto policies in California to assess which companies offer the best rates, coverage options, customer service, and savings to customers. We prioritized competitive rates, homeownership and multi-policy discounts, bundling options, 24/7 customer service, low-mileage discounts or programs, safe driving discounts, and specialty or supplemental coverages for policyholders.
What affects home and auto insurance rates in California?
Several California-specific factors influence insurance premiums, including:
Wildfire risk: California homeowners face some of the highest wildfire risk exposure in the U.S., particularly in areas like Northern California and the Sierra foothills. Insurers often raise premiums or limit dwelling coverage in high-risk zones.[5]
Traffic and population density: Los Angeles drivers lose dozens of hours annually to traffic congestion, according to the INRIX Global Traffic Scorecard. And California’s densely populated urban counties report high numbers of vehicle collisions each year through the California Office of Traffic Safety. Increased accident exposure, medical costs, and repair expenses can all contribute to higher auto insurance premiums.[6]
State regulations: California’s insurance laws limit the factors insurers may use to set rates. Unlike most states, California generally prohibits insurers from using credit history in pricing decisions and requires companies to obtain approval from the California Department of Insurance before implementing major rate increases under Proposition 103. Supporters say the rules help protect consumers from excessive pricing, while insurers argue the approval process can make it harder to respond quickly to rising claims and catastrophe costs.
Natural disasters: Beyond wildfires, earthquakes and floods are key risks in certain areas of the state. Standard homeowners insurance policies typically exclude coverage for these perils. Earthquake insurance and flood insurance are available but you must purchase them as separate policies or endorsements.
Compare California Car Insurance Quotes
Check quotes from 120+ top insurance companies
Is bundling home and auto insurance worth it in California?
Bundling home and auto insurance in California can lead to meaningful savings through multi-policy discounts. Major insurers, including Allstate, USAA, Farmers, and Travelers, advertise bundle savings ranging from about 10% to 25%, depending on eligibility and coverage selections.
Bundling can also simplify policy management by consolidating billing, claims, and customer service under a single insurer.
For California homeowners facing elevated wildfire-related insurance costs and drivers facing high urban accident exposure, bundling may help offset rising insurance premiums while maintaining broad coverage.
Lower insurance premiums through bundle discounts
Simplified policy management with one insurance company
Potential access to additional perks, such as single deductibles, loyalty discounts, and streamlined claims handling
May not always be the cheapest option
Less flexibility if one policy becomes expensive
Switching insurers can become more complicated if homeowners and auto coverage are tied together
Best home and auto insurance in California FAQs
If you still have questions about how to find the best home and auto insurance bundling options in California, the following answers can help.
What is the best home and auto insurance in California?
State Farm, Allstate, and USAA are among the best insurance companies in California. Each offers strong customer satisfaction scores, competitive coverage, and robust bundle discounts.
What is the cheapest home and auto insurance bundle in California?
USAA and State Farm often offer the cheapest home and auto insurance in California, though rates vary based on your location, wildfire risk, chosen deductible, coverage limits, and more.
How can you bundle home and auto insurance in California?
You can bundle California home and auto insurance by searching for insurance quotes and purchasing both policies from the same insurance company, either online, through insurance agents, or by comparing insurance quotes across insurers.
Do you need homeowners insurance in California?
Homeowners insurance isn’t legally required in California, but most lenders require a home insurance policy to ensure adequate dwelling coverage.[7]
Sources
- Terner Center. "The California Home Insurance Challenge in Eight Charts."
- J.D. Power. "It’s Now a Buyer’s Market for Auto Insurance, JD Power Finds."
- AM Best. "AM Best Affirms Credit Ratings of United Services Automobile Association, Its Subsidiaries and USAA Capital Corporation."
- J.D. Power. "J.D. Power Home Insurance Study."
- Insurance Information Institute. "Facts + Statistics: Wildfires."
- Inrix. "INRIX 2024 Global Traffic Scorecard: Employees & Consumers Returned to Downtowns, Traffic Delays & Costs Grew."
- California Department of Insurance. "HOMEOWNERS INSURANCE EMPOWERING CONSUMERS, STRENGTHENING COMMUNITIES."
Methodology
Insurify data scientists analyzed more than 190 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
)
)
)
)