Finding the Best Car Insurance in California: A Guide to Affordable Coverage
California is known for its sunshine and beautiful scenery but also has one of the highest car insurance rates in the country. In July 2024, annual premiums for full coverage car insurance averaged $2,573 in the Golden State, according to Bankrate data, compared to a national average of $2,278. But don’t fret, finding reasonable and reliable car insurance is still possible. CNBC Select has compared rates for dozens of auto insurance companies operating in California and selected the best based on cost, coverage and customer service.
Key Takeaways:
- California car insurance is more expensive than in most of the U.S.
- Multiple factors influence car insurance rates: Your driving record, age, location and other factors.
- CNBC Select has analyzed dozens of car insurance companies to identify the best options for different drivers.
- You can save money by shopping around and comparing quotes from different companies.
- Many companies offer discounts for good drivers, safe driving, and other factors.
- You can find car insurance companies that specialize in coverage for specific groups of drivers, such as high-risk drivers, seniors, new car owners, teachers, rideshare drivers and active military and veterans.
Best Car Insurance in California:
Here are some of the best car insurance companies in California, categorized by their key strengths:
Best for Affordability:
First Acceptance Auto Insurance
Who’s this for? First Acceptance is ideal for drivers who prioritize the best possible rate on their car insurance. It had the lowest sample premiums of all companies reviewed.
Standout benefits: First Acceptance is a budget-friendly option for drivers with speeding tickets and in other high-risk categories. They offer flexible payment schedules.
Detailed Information:
- A.M. Best rating: A
- Pros: Competitive rates for high-risk drivers, SR-22 certificate available, flexible payment schedules.
- Cons: Limited number of endorsements, not available in all states, high volume of complaints.
Best for Discounts:
Capital Insurance Group Car Insurance
Who’s this for? Capital Insurance Group offers numerous discounts for car insurance.
Standout benefits: CIG offers multi-policy credit rewards to customers who bundle auto and home insurance and is rated A+ by the Better Business Bureau.
Detailed Information:
- A.M. Best rating: A
- Pros: Affordable rates, A+ score from the Better Business Bureau, low volume of complaints.
- Cons: Only available in five states, policies must be purchased through an agent, quotes are not available online.
Best for Customer Satisfaction:
Wawanesa Auto Insurance
Who’s this for? Wawanesa is rated highly for customer satisfaction in California by J.D. Power. It offers coverage for custom parts and an optional add-on to have repairs done using genuine original equipment manufacturer (OEM) parts.
Standout benefits: Wawanessa has topped J.D. Power’s auto insurance survey for the California region every year since 2020 and has an A+ rating from the Better Business Bureau.
Detailed Information:
- A.M. Best rating: A+
- Pros: Highly rated for customer satisfaction, coverage for custom parts available, optional add-on to use original manufacturer parts in repairs.
- Cons: High volume of complaints, only available in California.
Best for Seniors:
Safeco Car Insurance
Who’s this for? Safeco offers affordable rates and a discount available to drivers 55 and older who complete a defensive driving course.
Standout benefits: If you stay claims-free, Safeco will send you a check for up to 5% of your premium every year. You can also save up to 30% with the RightTrack safe driving app.
Detailed Information:
- A.M. Best rating: A+
- Pros: Safe-driving discount worth up to 30% off, has accident forgiveness and a diminishing deductible, available nationwide.
- Cons: Above-average volume of complaints, below-average customer satisfaction rating from J.D. Power, quotes are not available online.
Best for New Cars
CONNECT Auto Insurance (backed by American Family Insurance)
Who’s this for? CONNECT offers gap insurance that covers the first three years you own your vehicle and comes with new car replacement insurance. They offer discounts for good drivers, returning customers and for parking in a garage overnight.
Standout benefits: All policies include a glass repair deductible waiver and comprehensive plans cover the cost of changing your lock if your keys are lost or stolen.
Detailed Information:
- A.M. Best rating: A
- Pros: Waiver of glass repair deductible included with standard policies, comprehensive plans include coverage to replace locks if keys are lost, gap insurance available, Costco members eligible for a discount and free roadside assistance.
- Cons: Not available in every state, new Costco CONNECT policies not available in California or Florida.
Best for Teachers
Horace Mann Auto Insurance
Who’s this for? Horace Mann offers special perks to educators, including rate discounts, new car replacement coverage and no deductible for collisions or vandalism losses on or near school property.
Standout benefits: The Educator Advantage package includes new car replacement coverage and no deductible for collisions or vandalism losses on or near school property.
Detailed Information:
- A.M. Best rating: A
- Pros: New car replacement coverage for teachers, $1,000 in property coverage if educational items are stolen/damaged, deductible waived for collisions or vandalism claims near school property.
- Cons: Most benefits are limited to educators, personal injury protection (PIP) and medical payments (MedPay) are not offered, above-average volume of complaints.
Best for Rideshare Drivers
Mercury Auto Insurance
Who’s this for? Mercury is one of the few car insurance companies that offers rideshare coverage in California.
Standout benefits: Rideshare insurance can cost as little as 90 cents a day more. Repairs made by an authorized garage are guaranteed for as long as you own your car.
Detailed Information:
- A.M. Best rating: A
- Pros: Affordable rates in California, rideshare insurance available under $1 per day, repairs made by an authorized garage are guaranteed.
- Cons: Auto insurance only available in 11 states, rated below average for customer satisfaction by J.D. Power, no gap insurance coverage.
Best for Active Military and Veterans
USAA Auto Insurance
Who’s this for? USAA is a standout for active-duty service members, veterans and their families. They offer discounts if you’re deployed or park your vehicle on base and offer the cheapest liability-only coverage.
Standout benefits: Besides its low rates, USAA offers benefits tailored to the military community, including discounts if you’re deployed or park your vehicle on base.
Detailed Information:
- A.M. Best rating: A++
- Pros: Cheapest insurer for liability-only coverage, stellar customer satisfaction scores, track record of financial strength, available in all 50 states.
- Cons: Limited to military families and veterans, no brick-and-mortar offices, customer service is not available 24/7, safe-driver discount is not available in every state.
More on the Top Car Insurance in California
First Acceptance: First Acceptance is a non-standard auto insurance company that specializes in coverage for high-risk drivers.
Capital Insurance Group: CIG is a regional insurer that offers numerous discounts for drivers who are safe drivers, good students, and who bundle their policies.
Wawanesa: Wawanesa became a subsidiary of the Auto Club of Southern California (AAA) in 2024 and only offers auto insurance in California. They are known for providing high quality, customer-centric service.
Safeco: A subsidiary of Liberty Mutual, Safeco offers a variety of discounts, including a safe driving discount, a diminishing deductible, and accident forgiveness..
CONNECT: CONNECT’s coverage includes a glass repair deductible waiver and lock replacement coverage for comprehensive plans. In addition, Costco members can get access to additional discounts and perks with a Costco Connect policy.
Horace Mann: Horace Mann offers a number of unique benefits for educators, including new car replacement coverage and liability coverage for transporting students.
Mercury: Mercury offers affordable auto insurance with online quotes and claim filing. They also offer rideshare insurance in California.
USAA: USAA is a highly-rated insurance company that offers discounts for active-duty service members and veterans that are unavailable to other drivers.
Car Insurance Requirements in California
The minimum car insurance requirements in California include coverage for damage to other drivers and passengers, as well as their vehicles and property. The minimum requirements in California for private passenger vehicles are set to increase on Jan. 1, 2025.
| Coverage | Amount in 2024 | Amount in 2025 |
|---|---|---|
| Bodily injury (per person) | $15,000 | $30,000 |
| Bodily injury (per accident) | $30,000 | $60,000 |
| Property damage | $5,000 | $15,000 |
How to Shop for Car Insurance in California
Whether you are looking for replacement coverage or a new policy, these steps can help you find the right match.
Get Your Information Together
Before you start getting quotes, make sure you have the following information on hand:
- Your driver’s license
- Your vehicle identification number (VIN), usually at the bottom of your windshield on the driver’s side
- Your vehicle’s make, model, year, and mileage
If you have coverage now, keep the policy details handy — including your premiums, limits, deductibles, exclusions, and discounts — to compare these quotes against your current policy.
Get at Least Three Quotes
When choosing car insurance companies to investigate, make sure they operate in your state. Some large insurers have pulled out of California or scaled back operations. Once you have a shortlist, review these key things to help determine the best fit for you:
- Financial strength ratings: Check the company’s financial strength rating from AM Best to ensure it is financially sound.
- Customer satisfaction: Look at the company’s customer satisfaction scores from J.D. Power and the Better Business Bureau and check if the National Association of Insurance Commissioners lists a high volume of complaints.
- Coverage and limits: Compare the coverage types and limits offered by each company to ensure you have adequate protection. Also, make sure you can comfortably afford the deductibles.
Compare Quotes
After you have received quotes from several companies, carefully compare them. Consider the following factors:
- Cost: Compare the premiums for each company and choose the most affordable option.
- Coverage: Make sure you have enough coverage to protect yourself, your family, and your property in case of an accident.
- Customer service: Choose a company that has a good record of customer service.
By taking the time to shop around and compare quotes, you can find the best car insurance for your needs and budget.
FAQs
How much does car insurance cost in California?
Car insurance averages about $2,692 a year for full coverage in California and $653 a year for minimum coverage, according to Bankrate. Individual rates vary based on your driving record, age, location, and other factors.
Is California a no-fault state?
California is not a no-fault state. If you are found liable for an accident, you will be financially responsible for any damage or injuries.
What is the best car insurance in California?
The best car insurance company for you will depend on your individual needs and circumstances. It is best to compare quotes from several reputable companies and choose the one that offers the best combination of price, coverage, and customer service.
Do car insurance companies in California check your credit?
Car insurance companies in California are prohibited from using your credit history to determine your rates.
Why Trust CNBC Select?
CNBC Select is committed to providing our readers with high-quality service journalism and comprehensive consumer advice. We create all our content without input from our commercial team or any outside third parties. We pride ourselves on our journalistic standards and ethics. Detailed information about our methodology can be found on our website. We believe that by providing our readers with unbiased information and recommendations, we can help them make informed decisions with their money.
Our Methodology
To determine the best car insurance companies in California, CNBC Select analyzed dozens of insurance companies offering car insurance coverage in the state. We compared rates, focusing on cost with a sample premium based on full coverage for a single driver who:
- Has five to seven years of driving experience
- Drives 10,000 miles per year
- Has no violations on their record
- Drives a Honda Accord
We gathered sample premium data for the same driver in several cities across California:
- Burbank (Los Angeles County)
- Nob Hill (San Francisco County)
- Pacific Beach (San Diego County)
- Rosemont (Sacramento County)
We averaged these rates to create the state average annual sample premium.
Beyond basic cost, we also considered:
- J.D. Power customer satisfaction scores
- A.M. Best financial strength ratings
- National Association of Insurance Commissioners complaint index
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Remember, premiums and policy structures fluctuate in accordance with company policies.
