California drivers, it’s time to save big on car insurance without compromising on coverage. With rising rates and unique challenges like wildfire risks and traffic congestion, finding the best car insurance in California tailored to your needs can feel like navigating the 405 at rush hour. We can help make it easy!
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5 Best California car insurance companies
Navigating California’s car insurance market means choosing a policy that fits your needs, whether you’re a new driver, a senior, or someone with a perfect driving record. Here are our top picks:
1. Best for High-Risk Drivers: First Acceptance Auto Insurance
Specializing in high-risk drivers, First Acceptance provides competitive rates for those with past accidents, speeding tickets, or poor credit. It’s a lifeline for drivers often sidelined by other insurers.
- Full coverage cost per month: $174 (average).
- Minimum coverage cost per month: $67 (average).
- Pro: Flexible payment schedules and SR-22 availability make it accessible for high-risk drivers.
- Con: Limited coverage options and higher complaint volume compared to competitors.
2. Best for Rideshare Drivers: Mercury Insurance
Mercury caters to California’s gig economy with rideshare insurance starting under $1 per day, ensuring you’re covered whether you’re driving for Uber, Lyft, or DoorDash.
- Full coverage cost per month: $185 (average).
- Minimum coverage cost per month: $72 (average).
- Pro: Affordable rideshare coverage and guaranteed repairs for authorized garages.
- Con: No gap insurance and below-average customer satisfaction ratings.
3. Best for Senior Drivers: Safeco
Seniors 55 and older can save up to 30% with Safeco’s RightTrack program, which rewards safe driving. Accident forgiveness and a diminishing deductible sweeten the deal.
- Full coverage cost per month: $190 (average).
- Minimum coverage cost per month: $65 (average).
- Pro: Unique perks like accident forgiveness and claim-free cashback rewards.
- Con: Higher-than-average complaint volume and limited online quoting options.
4. Best for Discounts: Capital Insurance Group (CIG)
With a focus on West Coast drivers, CIG offers an array of discounts, including savings for good students, bundling, and safe driving habits.
- Full coverage cost per month: $153 (average).
- Minimum coverage cost per month: $54 (average).
- Pro: Low complaint volume and A+ BBB rating ensure peace of mind.
- Con: Policies must be purchased through an agent, and quotes aren’t available online.
5. Best for Customer Satisfaction: Wawanesa
Consistently topping J.D. Power’s rankings in California, Wawanesa prioritizes customer satisfaction with unique add-ons like custom parts coverage and original manufacturer parts for repairs.
- Full coverage cost per month: $160 (average).
- Minimum coverage cost per month: $49 (average).
- Pro: Outstanding customer service and innovative policy add-ons.
- Con: Only available in California and rated lower for handling claims quickly.
Understanding the minimum car insurance requirements in California
California law mandates that all drivers carry minimum liability car insurance to legally operate a vehicle. This requirement helps ensure that drivers can cover the financial costs of injuries or property damage they may cause in an accident. Beginning January 1, 2025, the minimum liability limits will increase, reflecting the state’s effort to better protect drivers and property owners.
Bodily injury liability
Bodily injury liability covers the medical expenses, lost wages, and other costs associated with injuries you cause to other people in an accident. The current minimum requirement in California is $15,000 per person and $30,000 per accident. This coverage is critical in helping accident victims recover financially, but it doesn’t cover injuries to the policyholder. Starting in 2025, these limits will rise to $30,000 per person and $60,000 per accident, offering greater financial security in higher-cost scenarios.
Property damage liability
Property damage liability covers repairs or replacement costs for damage you cause to another person’s property, such as their vehicle, fence, or home. California currently requires at least $5,000 in property damage liability coverage. However, this amount can be easily exceeded in modern accidents involving high-value vehicles or extensive damage. Beginning in 2025, the minimum requirement will increase to $15,000, better aligning with current repair and replacement costs.
Uninsured/underinsured motorist (UM/UIM)
Uninsured motorist coverage helps pay for medical expenses if you’re injured by a driver without insurance, while underinsured motorist coverage kicks in when the at-fault driver’s liability limits aren’t enough to cover your expenses. California’s minimum requirement is $15,000 per person and $30,000 per accident, matching the current liability limits. Although this coverage is optional, it’s a smart addition, given that roughly 16% of California drivers are uninsured.
Optional car insurance coverages in CA
While the minimum requirements provide a legal baseline, optional coverages can offer extra peace of mind.
- Liability protection: Goes beyond state minimums to offer higher coverage limits, ensuring you’re fully protected in severe accidents.
- Collision protection: Covers the cost of repairs to your own vehicle after an accident, regardless of fault.
- Comprehensive coverage: Protects against non-collision-related damages, like theft, vandalism, or natural disasters (hello, wildfire season!).
- Medical payments coverage: Covers medical expenses for you and your passengers, regardless of who’s at fault.
- Roadside Assistance: Provides towing, jump starts, and other emergency services.
- Rental car reimbursement: Pays for a rental vehicle while your car is being repaired after a covered accident.
How much is car insurance in California?
Car insurance costs vary across California, influenced by factors such as age, driving history, location, and vehicle type.
- Full coverage average: $155 per month ($1,860 annually).
- Minimum coverage average: $56 per month ($670 annually).
For instance, drivers in Los Angeles might pay higher rates due to traffic congestion and theft risk, averaging around $215 per month, while drivers in San Diego enjoy lower rates at $142 per month.
How to get California car insurance discounts
Saving on car insurance in California isn’t just possible—it’s practically a sport. Here are ways to lower your premiums:
- Good driver discount: Drivers with clean records can save up to 20%.
- Multi-car discount: Insuring multiple vehicles on one policy often leads to discounts.
- Bundling with home insurance: Combine your auto and home insurance for significant savings.
- Good student discount: High school and college students with good grades often qualify for reduced rates.
- Low mileage discount: Drive less? Pay less. Insurers reward drivers who clock fewer miles annually.
- Safety features: Cars equipped with anti-theft systems and airbags can earn you discounts.
- Defensive driving course completion: Completing an approved course can lead to lower premiums.
What are the penalties of driving a vehicle without insurance in California?
Driving without car insurance in California can hit your wallet hard—and not just in fines.
- Fines: Up to $200 for a first offense and up to $500 for subsequent offenses.
- Registration suspension: The DMV will suspend your vehicle’s registration until proof of insurance is provided.
- Vehicle impoundment: You’ll be responsible for towing and storage fees.
It’s not worth the risk. Stay covered to avoid these costly consequences.
Drive confidently with the right coverage
Finding the best car insurance in California doesn’t have to feel like navigating LA traffic. From high-risk drivers to senior discounts, there’s a policy for everyone. Use these tips and recommendations to lock in the coverage you need while helping you save big. And make sure to explore other guides for different states!
FAQs
Is car insurance more expensive in California?
Yes, California’s higher traffic density and natural disaster risks contribute to higher premiums compared to many states.
Is California a no-fault state?
No, California follows a fault-based system for car insurance claims.
What are California’s rules on electronic proof of insurance?
California accepts electronic proof of insurance, allowing you to show it via your smartphone during traffic stops or accidents.
Methodology
To determine some of the best car insurance options in California, we analyzed factors such as average premiums, coverage options, available discounts, financial strength ratings, and customer satisfaction scores. We prioritized local providers and included insights into California-specific requirements to ensure the recommendations are relevant and comprehensive.