California residents have many insurance companies available to them when they are shopping for auto insurance.Geico, Progressive, State Farm and Wawanesa sell some of the best car insurance in California, based on Bankrate’s extensive research.California residents may want to compare these quotes when searching for car insurance.
The average cost of car insurance in California is $2,065 per year for full coverage, according to Bankrate’s 2021 study of quoted annual premiums obtained from Quadrant Information ServicesWe have done extensive research to find the best auto insurance companies in California. This could help you choose the right company for your needs and budget.
California’s best car insurance companies
Bankrate’s editorial team analyzed the average annual premiums of the top insurance companies in California to find the best car insurance. We also looked at each carrier’s policies, discounts, and coverages. We also reviewed each company’s 2021 J.D. Scores of AM Best financial strength and Power customer satisfaction.
If you’re looking for the best California auto insurance, we recommend that you get quotes from these companies.
Geico
California is another state where Geico has consistently offered the lowest average premiums. If your primary concern is finding a cheap car insurance policy, Geico might be a good choice. Geico might be a good option for customers with a high level of tech skills who prefer to manage their insurance online. According to the 2021 J.D., Geico is the most highly rated digital service platform. The Power U.S. Insurance Digital Experience Study.
Progressive
Progressive may be an option if you are looking to purchase your auto insurance online and get a quote. Progressive offers discounts on online quotes and purchase, and its digital tools can help you save time. If you have a tight budget, the Name Your Price tool may be an option. This tool will allow you to enter your car insurance budget, and then it will populate coverage options that match your financial picture.
State Farm
State Farm has local agents in almost every major city in California, making the company a good choice if you want an in-person insurance experience. State Farm’s good student discount and Steer Clear safe driving program might help you save money on your premium if you have a teen driver in your household. State Farm has an A++ (Superior), financial strength rating from AM Best. This means that it is likely to be capable of handling large amounts of claims.
Wawanesa
Wawanesa may not be the most well-known insurance company, but it could be a great option if you value excellent customer service. J.D. ranked Wawanesa as the best. The California region has the most power. Wawanesa is a U.S. company that only covers California and Oregon. This means that they may be more familiar in California with drivers’ needs.
California’s average car insurance price
The average annual cost of car insurance in California is $2,065 for full coverage and $733 for minimum coverage.California drivers are more expensive than those in the United States, on average. This may be because California has the highest cost of living.Most registered driversThis leads to more accidents and denser traffic. The average national premium for full coverage is $1.674 per year.
California’s minimum insurance requirements
California law requires that drivers have at least the minimum amount of liability coverage to be able to drive legally in California. These are the minimum coverage requirements:
- $15,000 bodily injury liability per individual
- $30,000 bodily injury liability per incident
- Property damage liability of $5,000 per accident
California also requires that you are offered uninsured and underinsured motorist bodily injury coverage, along with uninsured motorist property damage, but you can decline these coverages if you do not want to have them. Although comprehensive and collision coverages are not required, lenders may require that you purchase them if your vehicle is financed. You may need to buy higher liability limits if you have a vehicle loan or lease.
You might want to check with your lender to verify the coverage you require and speak with an agent to review your policy.
How to get the best car coverage
California may not be the most affordable state for car insurance. However, it is possible to get the best rates and discounts by shopping around and comparing quotes across multiple providers. These are two options that you might be able to use to get the best car insurance.
- Assess your needsEvery person has different auto insurance needs. It is possible to live in an area with heavy traffic or tourism, such as Los Angeles or San Francisco. You may have a teenage driver to insure, or have had a few tickets or accidents on your driving record. Knowing your needs can help you choose the right company to get quotes from.
- Take into account state factorsCalifornia is densely populated.16.6% of motoristsThey are considered uninsured. ShoppingUninsured motorist coverageThese drivers could help to protect your finances against accidents. You may be more at risk of theft or vandalism if you live in a larger city. Therefore, it is a good idea to have comprehensive coverage.
California car insurance discounts
Many car insurance companies offer discounts that will help you save money on car insurance premiums. California offers the following discounts:
- Multi-policy:Multi-product insurance companies, such as auto, home, and umbrella policies, will often offer a discount for each policy you purchase. You could save quite a bit by consolidating your insurance products with one provider.
- Good driverYou may be eligible for a safe or good driver discount if you haven’t been in an accident or received a ticket within a specified time period, typically three to five years.
- Loyalty:HoweverSwitching your insuranceYou may be able to get a lower premium. Many companies will give you a discount if you keep your policy with the same provider for longer periods.
- Excellent studentYou may be eligible for a student discount if you insure a student who is a full-time student and under 25 years old. To qualify, students must have a minimum B-letter-grade average and a 3.0 GPA.
- AffinityYou might be eligible for discounts with certain insurance companies if you are a member of alumni associations or membership clubs.
Multi-policy discounts offer some of the best savings. In addition to saving you money, bundling your policies with one company can make your insurance more convenient. Good student discounts are also available if you insure a full time student. On average, California households see an increase of $3,744 per year when adding a 16-year-old driver to an existing policy. This increase can be reduced to $3,160 annually if you are a student.
Questions frequently asked
What is the cost of California car insurance?
California’s average annual cost for full coverage car insurance is $2,065 Your premium could be higher or lower than what the state average because car insurance rates vary depending on individual factors.
Which California auto insurance company is the best?
Each provider has a unique rate, coverage option, customer satisfaction, discount options and different rates. This is why the best car insurance company depends on each driver. Although the market leaders may be a great place to begin comparing quotes, it is worth looking at local providers for better rates and customer service.
Is California offering a reduced rate program to low-income drivers?
Yes. California’s Low-Cost Automobile Program (CLCA) offers potential savings on car insurance for drivers who meet income requirements.
California allows you to self-insure your vehicle.
Yes. Yes. California’s financial responsibility laws require that you provide proof of auto insurance. You can self-insure your vehicle, provide a cash deposit of $35,000 or provide a surety bond for $35,000 from a qualifying company.