Cheapest and Best California Car Insurance Companies (2023) (2023)

FAQs

Who actually has the cheapest auto insurance? ›

The cheapest car insurance company overall: State Farm

State Farm is the cheapest major auto insurance company in the nation for good drivers, according to NerdWallet's 2023 analysis of minimum coverage rates.

Both Geico and Progressive offer lower average premiums on policies for drivers and homeowners, but if cost is your primary consideration, Geico has the edge. Its average rates tend to be lower than the average rates offered by Progressive, and the company's extensive discount list may help you save even more.

Most financial experts recommend raising your liability to $50,000 per person and $100,000 per accident if you have few assets. With more assets — like a house, expensive car, or large amounts of savings — experts recommend bumping your coverage up to at least $100,000 per person and $300,000 per accident.

The cheapest auto insurance company for young drivers in California is Geico. Its average rate of $97 per month for minimum coverage is 24% less than the statewide average. For full coverage, State Farm is slightly cheaper than Geico.

Cars in insurance group 1 have the cheapest insurance premiums, making them a great bet if you're on a budget. But how much you pay for your insurance will depend on other factors too, including your age, your claims history and how many miles you drive in a year.

According to our analysis, USAA, Geico, and State Farm consistently offer some of the cheapest annual rates on average, including policies to fit specific needs, such as for a teenager or for a driver with a blemish on their driving record like a speeding ticket or traffic accident.

According to our research, car insurance premiums start to go up within eight days of your current policy ending, and the sharpest rise comes around three days before. So as long as you buy before then you should avoid the big price hike reserved for those who leave it until the last minute.

All they have to do is look for opportunities in California's competitive marketplace. The Chronicle reports that insurance industry magazines linked Geico's decision to close California sales offices to its failure to raise insurance prices in compliance with Sacramento regulations and other market forces.

Who is cheaper than State Farm? ›

Geico and Progressive are better than State Farm, based on factors like average premiums, number of discounts available, and customer service record. Geico is also one of five top-10 car insurance companies that are cheaper on average than State Farm, along with Travelers, USAA and Progressive.

GEICO has closed its 38 sales offices in California and laid off “hundreds” of employees, according to media reports, but the closings will not affect the handling of claims, a spokesperson for the company told Repairer Driven News.

The average cost of car insurance in California is $1,429 per year or $119 per month. It ranks 38th among states, with #1 being the cheapest. The factors affecting it the most are the driver's age and how much coverage they purchase.

Geico is so cheap because it sells insurance directly to consumers and offers a lot of discounts. Direct-to-consumer insurance sales eliminate the cost of middlemen and allow Geico to have significantly fewer local offices and agents than companies like State Farm and Allstate.

Are older cars cheaper to insure? Yes, most older cars are cheaper to insure, especially in terms of comprehensive and collision insurance. Cars lose value as they age, so the potential insurance payouts after an accident drop as well. This is not the case with many classic or collector cars.

New drivers who are older tend to pay slightly less insurance, as part of the car insurance premium you pay will be based on your age. But your experience as a driver also determines how much you pay so an older driver with less driving experience will pay more than an older driver with more experience.

Basic car insurance is often known as liability insurance. Requirements vary by state, but basic auto insurance can be broken down into two main types of liability insurance: personal injury and property damage.

Are automatic cars cheaper to insure? ›

Automatic cars tend to be more expensive to buy than manuals, which generally means car insurance premiums are higher too. This is to cover the cost of any damage or a replacement vehicle. For example, an automatic gearbox is more complex than a manual one and so typically costs more to replace.

It's all about weighing up the odds and costs. If the cost of repairing your car, or another person's vehicle, after an accident is cheaper by claiming on your insurance, it's probably the best idea. Car insurance is there for these circumstances after all, so you shouldn't avoid using it if you have to.

What to know first. 18-year-old drivers on their own policy pay the highest car insurance premiums out of the age groups Bankrate analyzed. The most significant difference in premiums by gender occurs at age 18.

For young drivers, car insurance rates go down every year that you renew your policy and haven't made a claim. Age 25 is when you'll see the biggest drop in car insurance rates. Car insurance tends to cost more for male drivers, but both male and female drivers will see their rates go down when they turn 25.

In most cases, a six-month policy is going to be cheaper than a 12-month policy because you are paying for coverage over a shorter period of time. However, if you compare your car insurance price on a monthly basis, it may not be much different between a six-month policy and a 12-month policy.

What is minimum car insurance in California? ›

Here are the minimum liability insurance requirements (per California Insurance Code §11580.1b): $15,000 for injury/death to one person. $30,000 for injury/death to more than one person. $5,000 for damage to property.

Major auto insurers are pulling back in the California marketplace because they are saying our drivers are just too expensive to insure. Californians are driving about as much as they were before the pandemic, but apparently not as well.

GEICO competitors include USAA, Liberty Mutual Insurance, Nationwide Insurance, Allstate and State Farm Insurance.

State Farm beats Allstate in terms of cost, types of insurance, discounts offered, and transparency, though Allstate and State Farm make it equally easy for policyholders to file claims. Additionally, State Farm is a larger insurer by market share, which means it has more resources.

Compared to Progressive, Geico is the more affordable insurer for most types of drivers. For those seeking minimum coverage car insurance, the costs are nearly the same.

Compare the rates to help you find an affordable policy. Progressive is generally cheaper than State Farm with an average rate of $104 per month. State Farm, however, isn't much more expensive, coming in at $108 per month on average.

Geico increases premiums as the cost of medical care rises, for example, because it makes bodily injury claims more expensive to pay out. Unpredictable, severe weather also causes prices to go up since insurers are hit with large numbers of expensive claims at once.

GEICO has closed all of its 38 California offices that sell auto and homeowners' policies and other lines.

As of 2021, the average annual rate of car insurance in California is $1,429, making it one of the most expensive states to insure a vehicle.

Is monthly car insurance better? ›

If you can afford to pay for your car insurance in one go, that is almost always cheaper than choosing to pay monthly car insurance. That's because, by paying a lump sum upfront, you avoid entering into a credit agreement that involves paying interest on the premium calculated by the insurer.

Based on MoneyGeek's rating methodology, Esurance has an above-average score when it comes to stability and affordability and an average score for complaints and user satisfaction. The insurer has a below-average score for discounts. The company's policies are neither cheap nor expensive for drivers of all types.

As a result of the increased and expanded financial help made available through the federal Inflation Reduction Act, two-thirds of Covered California enrollees can get comprehensive coverage for all of 2023 for $10 or less per month.

The limits are based on both household income and household size. In 2022, an individual in a one-person household is eligible for some degree of Covered California subsidies if they earn up to $51,520. Meanwhile, that limit rises to $106,000 for a household size of 4.

Immigrants who are not lawfully present do not qualify for a health plan through Covered California; however, they may qualify for coverage through Medi-Cal if they are younger than 26 or are 50 or older, if they are a DACA recipient, if they are currently pregnant or were recently pregnant.

Is Progressive Cheaper Than Geico? Both Geico and Progressive offer cheap car insurance to drivers across the country. Geico's rates are typically lower overall, but Progressive tends to offer better prices to those with a recent DUI, at-fault accident or speeding ticket on their driving record.

A policy from Liberty Mutual costs 30% more than one from Geico, on average. In fact, Liberty Mutual is more expensive than many major insurers — a minimum-coverage policy costs 20% more than the national average.

Who can join? Our products and services are open to current and former military and their spouses. Children of USAA members can join, too.

The Zebra is accredited by the Better Business Bureau and holds an A rating. Previous customer complaints have included calls after getting a quote. Unlike some other comparison sites, The Zebra is not a lead-generation website for insurance companies and they do not sell consumers' personal information.

Is GEICO pulling out of California? ›

GEICO has closed its 38 sales offices in California and laid off “hundreds” of employees, according to media reports, but the closings will not affect the handling of claims, a spokesperson for the company told Repairer Driven News.

Please provide a copy of an acceptable military document and government-issued ID. Examples of acceptable military documents include DD214(long version), Discharge Certificate, Leave & Earnings Statement or military orders if you're actively serving. If you are in a Delayed Entry Program please provide your DD Form 4.

To join USAA, separated military personnel must have received a discharge type of Honorable or General Under Honorable Conditions. Eligible former dependents of USAA members may join USAA. The trademarks, logos and names of other companies, products and services are the property of their respective owners.

USAA insurance is only for military members' and veterans' direct family members. Anyone besides a current or former spouse and children will not be eligible for USAA insurance coverage.

On average, GEICO offers more affordable rates than Allstate for drivers with credit scores of less than 580. Drivers with outstanding credit — a score of 800 or better — should consider GEICO, which typically beats Allstate by $679 per year. View common insurance rates by credit level for Allstate and GEICO below.

kotak.com is the most visited Insurance website in India in January 2023, attracting nearly 19.4M monthly visits.

AARP Auto has a decent customer service reputation, with MoneyGeek rating both its customer satisfaction and customer complaints as average. It does not score well on affordability or discounts. AARP Auto offers car insurance policies that are expensive compared to other insurance firms.