Penny Gusner is a senior insurance writer and analyst at Forbes Advisor. For more than 20 years, she has been helping consumers learn how insurance laws, data, trends, and coverages affect them. Penny enjoys translating the complexities of insurance into easy-to-understand advice and tips to help consumers make the best choices for their needs. Her work has been featured in numerous major media outlets, including The Washington Post and Kiplinger’s.
Penny Gusner
Penny Gusner is a senior insurance writer and analyst at Forbes Advisor. For more than 20 years, she has been helping consumers learn how insurance laws, data, trends, and coverages affect them. Penny enjoys translating the complexities of insurance into easy-to-understand advice and tips to help consumers make the best choices for their needs. Her work has been featured in numerous major media outlets, including The Washington Post and Kiplinger’s.
Les Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before covering insurance, Les was a news editor and reporter for Patch and Community Newspaper Company and also covered health care, mortgages, credit cards and personal loans for multiple websites.
Fact Checked
Les Masterson
Les Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before covering insurance, Les was a news editor and reporter for Patch and Community Newspaper Company and also covered health care, mortgages, credit cards and personal loans for multiple websites.
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Finding the cheapest car insurance in California doesn’t have to be hard. We analyzed rates from large California auto insurers to identify the most affordable choices.
Read more
Best Car Insurance Companies
Show Summary
- Cheap Car Insurance in California
- Wawanesa
- Grange
- Capital Insurance Group
- Geico
- Mercury
- National General
- USAA
- Summary: Cheap California Car Insurance Ratings
- Finding Cheap Car Insurance in California
- Car Insurance Discounts Required in California
- Least Expensive Vehicles for Insurance in California
- California’s Low Cost Automobile Insurance Program
- Many Californians Dissatisfied with Fairness in Auto Insurance
- Required Minimum Auto Insurance in California
- Summary: Required California Car Insurance
- Can I Show My Insurance ID Card from My Phone in California?
- Factors Allowed in California Car Insurance Rates
- How Many Uninsured Drivers are in California?
- Penalties for Driving Without Auto Insurance in California
- When Can California Car Insurance be Canceled?
- When Can a Vehicle Be Totaled in California?
- Solving Insurance Problems in California
- Methodology
- Next Up In Car Insurance
Cheap Car Insurance in California
Summary: Cheap California Car Insurance Ratings
| Company | Forbes Advisor Rating | Average cost per year for good drivers | Average cost per year for drivers with a speeding ticket | LEARN MORE | ||||
|---|---|---|---|---|---|---|---|---|
| Wawanesa |  |
5.0 |  |
$1,470 | $2,080 | Compare Rates | Compare rates from participating partners via EverQuote's secure site. | |
| Grange |  |
4.5 |  |
$2,170 | $2,700 | Compare Rates | Compare rates from participating partners via EverQuote's secure site. | |
| Capital Insurance Group |  |
4.0 |  |
$1,729 | $2,494 | Compare Rates | Compare rates from participating partners via EverQuote's secure site. | |
 |
4.0 | |
$1,721 | $2,537 | Compare Rates | Compare rates from participating partners via EverQuote's secure site. | ||
| Mercury |  |
4.0 | |
$2,145 | $2,828 | Compare Rates | Compare rates from participating partners via EverQuote's secure site. | |
| National General |  |
4.0 |  |
$2,358 | $2,471 | Compare Rates | Compare rates from participating partners via EverQuote's secure site. | |
 |
4.0 | |
$1,775 | $1,969 | Compare Rates | Compare rates from participating partners via EverQuote's secure site. |
Finding Cheap Car Insurance in California
Comparing quotes to find cheap car insurance in California shouldn’t be a hassle. We evaluated companies in California to find the lowest rates.
Featured Car Insurance Partners
1
Geico
Auto insurance rates
Good
Collision repair
C-
Complaint level
Low
2
USAA
Auto insurance rates
Excellent
Collision repair
C+
Complaint level
OK
Cheap California Car Insurance for Good Drivers
Wawanesa and Geico are the cheapest California car insurance companies for good drivers, among the companies we analyzed.
Cheap Car Insurance in California for Drivers With a Speeding Ticket
A speeding ticket increases car insurance rates by 36% in California. The exact rate increase will vary by insurance company. Even though you’ll face higher insurance rates, you can still compare quotes for the best car insurance.
USAA and Wawanesa have the lowest average rates for drivers with a speeding ticket in California, so make sure to get quotes from those companies if you’re shopping for California vehicle insurance and have a speeding ticket on your record.
Cheap California car insurance for drivers who caused an accident with injury
Causing a car crash with an injury to someone else will make it harder to find cheap car insurance. Our analysis found an average increase of 89% in California compared to drivers with a good driving record.
If you cause a car crash with an injury, Grange and Wawanesa may have the most competitive prices among the insurance companies in our analysis.
An accident will stay on your record for three years in California. Here’s California’s guide to what’s next after you have an accident.
Cheap California car insurance for drivers with a DUI
Car insurance premiums in California go up an average of 131% if you have a DUI conviction on your record. You can still compare car insurance quotes to find better rates.
The cheapest California car insurance companies for drivers with a DUI are Wawanesa and National General, among the insurers we analyzed.
Cheap California car insurance for adding a teen driver
Adding a teen to your insurance increases rates by an average of 102% in California, compared to rates for a married couple without a teen driver.
Take a look at quotes from Hartford and Grange if you’re looking for cheap car insurance for teens in California.
Cheap California car insurance for young drivers ages 18 to 25
Purchasing your own car insurance is a pricey entry into adulthood. Our analysis found that Wawanesa and USAA offer the cheapest California car insurance for young drivers.
Cheap California car Insurance for senior drivers ages 60-80
Wawanesa and USAA offer the best car insurance for seniors who are looking for low costs in California. Senior drivers should also find out if there’s a discount for taking a defensive driver class.
Car Insurance Discounts Required in California
California car insurance companies must reveal all discounts that a customer is eligible for, including those for good drivers, students, older drivers and multiple vehicles and any others available.
These are the car insurance discounts that must be provided in the state.
Good driver discount
Californians eligible for a good driver discount include:
- Drivers without more than one violation point or more than one dismissal of a complaint within the last three years.
- People who have not been the driver in an accident with bodily injury or death and not convicted of a violation connected to driving under the influence in the last 10 years.
The good driver should be charged at least 20% less than the lowest cost for a comparable non-good driver. Insurers must apply the discount to the total cost for coverage.
Training or defensive driving discount
California car insurance companies must offer discounts to drivers who complete driving training or defensive driving courses.
Older adult discount
California insurance companies must offer a discount to drivers who are age 55 or over and who finished an approved mature driver improvement course. Drivers must show proof of the course completion every three years to get the discount. The car insurance company decides on the discount amount.
Least Expensive Vehicles for Insurance in California
The most expensive for insurance in California among popular models are the Tesla Model 3, Standard Plus ($3,596 a year) and the Tesla Model S Performance ($6,727 a year).
With the right vehicle, you can potentially save money on auto insurance. In California, the Honda CR-V and Subaru Forester and Crosstrek are among the cheapest vehicles for car insurance, based on average rates for 50 top-selling 2021 models. The 20 least expensive are below.
| Vehicle | Average annual cost in California |
|---|---|
|
Honda CR-V LX
|
$2,237
|
|
Subaru Forester 2.5I
|
$2,244
|
|
Subaru Crosstrek
|
$2,303
|
|
Jeep Wrangler JL Sport
|
$2,346
|
|
Hyundai Tucson SE
|
$2,366
|
|
Ford Escape S
|
$2,382
|
|
Jeep Compass Latitude
|
$2,391
|
|
Honda Pilot SE
|
$2,394
|
|
Chevrolet Trax LS
|
$2,395
|
|
Chevrolet Equinox L
|
$2,409
|
|
Kia Sportage EX
|
$2,429
|
|
Volkswagen Tiguan SE
|
$2,436
|
|
Dodge Grand Caravan SE
|
$2,447
|
|
Toyota Highlander LE
|
$2,473
|
|
Mazda CX-5 Grand Touring
|
$2,475
|
|
Chevrolet Traverse LS
|
$2,477
|
|
Subaru Outback 2.4I Limited XT
|
$2,484
|
|
Ford Edge SE
|
$2,490
|
|
Toyota RAV4 LE
|
$2,495
|
|
Ford F-150 XL
|
$2,500
|
California’s Low Cost Automobile Insurance Program
California runs a program that makes auto insurance more affordable for drivers who meet income guidelines. You can find out whether your income level qualifies at MyLowCostAuto.com. To qualify you also must:
- Be at least 16 years old
- Have a valid California driver’s license
- Have a vehicle worth $25,000 or less
- Have a good driving record
Many Californians Dissatisfied with Fairness in Auto Insurance
Almost six in 10 (58%) California voters said they are dissatisfied with the fairness of car insurance rates, according to a November 2020 survey conducted by EMC Research and commissioned by Root Insurance. Just over half of the survey respondents feel the current method to determine car insurance rates in California is discriminatory.
Ironically, California’s Prop 103 law, passed in 1988, was supposed to reduce these grievances. The law says auto insurers in California must base their rates on driving record, years of driving experience and annual mileage.
The level of dissatisfaction with California auto insurance rates was high among key demographic groups:
- 70% of lower-income voters said they are unsatisfied with the fairness of rates, as well as 64% of Latino voters, 61% of Asian/Pacific Island voters, 59% of Black voters and 61% of Democrats
- Only 11% of Black voters and 17% of Latino voters are satisfied with the availability of affordable car insurance for low-income drivers
The survey also found that 58% of Latino and Black voters believe the current way car insurance rates are determined is discriminatory.
“Black and Latino voters feel discriminated against and that won’t change unless we make changes to give them more fair and equitable options,” said Edwin Lombard, CEO of the California African-American Chamber of Commerce, in a statement.
When asked if car insurance rates should be determined by how someone drives versus their demographic makeup, California voters overwhelmingly chose driving behavior as the most important.
Nationwide, insurance regulators have pledged to address racism and discrimination within the industry. The National Association of Insurance Counselors announced the formation of a special committee with a focus on Race and Insurance. The committee is tasked with looking into potentially inherently discriminatory practices in the industry’s use of non-driving pricing factors such as occupational status, education, home ownership, and insurance credit scores.
Required Minimum Auto Insurance in California
Liability insurance pays for damage and injuries you cause to others. In turn, if someone else crashes into you, you should be able to make a claim on their liability coverage. Car owners in California must buy at least:
- $15,000 for injury/death to one person.
- $30,000 for injury/death to more than one person.
- $5,000 for damage to property.
Summary: Required California Car Insurance
A good auto insurance policy starts with liability insurance that’s higher than state requirements. State minimums are low and can leave you open to lawsuits when you don’t have enough insurance. If you have assets to protect from a lawsuit, such as savings, you’ll want a higher level of coverage. As your income and assets get higher, you can become a lawsuit target and should consider generous auto insurance limits.
| Coverage | Required in California |
|---|---|
|
Liability – bodily injury to one person
|
$15,000
|
|
Liability – maximum per accident
|
$30,000
|
|
Liability – property damage
|
$5,000
|
Other coverage types we recommend are:
Collision and comprehensive coverage: Collision and comprehensive pay for repairs to your car from a wide variety of problems, including hail, floods, fire, vandalism and crashes with other objects and animals. Comprehensive insurance also covers car theft.
Uninsured motorist coverage: If you’re injured by a driver who has little or no liability insurance, uninsured motorist coverage (UM) can help. It pays your medical bills when someone else causes an accident and they have no insurance or not enough to cover your bills. UM can also pay for lost wages and pain and suffering due to the accident.
Umbrella insurance: This coverage provides an extra layer of liability insurance above your auto and homeowners insurance. In the event of a disastrous auto accident, umbrella coverage gives increased coverage from lawsuits.
Can I Show My Insurance ID Card from My Phone in California?
California law allows you to show proof of insurance from your mobile phone. Otherwise you must keep a paper copy in your car and show it when:
- Law enforcement requests it.
- You renew the vehicle registration.
- You’re in a car accident.
Factors Allowed in California Car Insurance Rates
Car insurance companies typically use many factors to calculate your rates, and prices can vary significantly among insurers. Your driving record, past claims, vehicle model and more all play a part. In California companies can also use these factors.
| Factor | Allowed in California? |
|---|---|
|
Age
|
Yes
|
|
Credit
|
No
|
|
Education & occupation
|
Yes
|
|
Gender
|
No
|
|
Marital status
|
Yes
|
|
ZIP code
|
Yes
|
Source: American Property Casualty Insurance Association. Other factors will be used to calculate your rates, including driving record and the amount of coverage you want.
How Many Uninsured Drivers are in California?
About 17% of California drivers have no insurance, according to the Insurance Research Council. If they crash into you, you can sue them to try to get payment.
If you have uninsured motorist coverage, you can use that for injuries to you and/or your passengers.
If you have a form of insurance called uninsured motorist property damage coverage, you can use that for repairs to your car. Another option is to use collision insurance, if you have it, for repairs.
Penalties for Driving Without Auto Insurance in California
California law requires car owners to have a minimum amount of insurance coverage. If you’re caught driving without insurance, here are the penalties.
- First offense: $100 to $200 fine plus penalties.
- Second offense within three years of the first: $200 to $500 plus penalties.
When Can California Car Insurance be Canceled?
State law defines reasons car insurance can be cancelled. In California the reasons are:
- You didn’t pay your car insurance bill.
- You, your household members or anyone who regularly drives your car had their driver’s license suspended or revoked during the policy period. Or if the policy is a renewal, during the policy period or the 180 days immediately preceding the policy effective date.
- You made a fraudulent car insurance claim.
- You misrepresented any of the following information about you, your household members or anyone who regularly drives your car 1) driving record; 2) annual miles driven in past years; 3) number of years of driving experience; 4) past car insurance claims; 5) any other factor found by the California insurance commissioner to cause a substantial risk of loss.
When Can a Vehicle Be Totaled in California?
If your vehicle is severely damaged in an accident, your insurance company might decide it’s totaled. Under California law, a vehicle can be considered totaled when it’s “uneconomical to repair.”
If you want to receive an insurance payment for a totaled car, make sure you buy collision and comprehensive coverage. They will pay the value of the vehicle if it’s totaled or stolen. Your deductible amount will reduce the insurance check.
Solving Insurance Problems in California
The California department of insurance is responsible for taking complaints against insurance companies. If you have an issue with your insurer that you haven’t been able to resolve, the department of insurance may be able to help. See the getting help page.
Methodology
To find the cheapest auto insurance companies in California, we used rates from Quadrant Information Services, a provider of insurance data and analytics. Except where noted, rates are based on a 40-year-old female driver with a clean record insuring a new Toyota RAV4 with $100,000 in bodily injury liability coverage per person, $300,000 per accident and $100,000 in property damage liability (known as 100/300/100), uninsured motorist coverage and any other coverage required in the state. Rates also include collision and comprehensive insurance with a $500 deductible.
State averages for California are based on rates from Wawanesa, Grange, Capital Insurance Group, Geico, Mercury, National General, USAA, California Capital, Esurance, Infinity, Progressive, State National, Workmen’s Auto, 21st Century, Alliance United, Auto Club, CSE, Kemper, CSAA, Farmers, Travelers, Allied, Allstate, State Farm, Bristol West, Chubb, Nationwide, Pure and Hartford.
