Cheap Car Insurance in California for 2024 (Save Big With These 10 Companies!)

Explore our best providers of  cheap car insurance in California with rates starting only at $33 per month. Geico, State Farm, and Travelers are the top three companies that offer affordable rates, complete auto coverage, and premium customer experience.

If you’re a resident of California and own a car, having car insurance is not just a legal requirement but also a necessity for your financial protection. However, understanding what you should know about auto insurance is crucial, as finding affordable car insurance in the Golden State can be a daunting task.

Our Top 10 Company Picks: Cheap Car Insurance in California

In this article, we will guide you through the process of understanding car insurance in California, factors that influence car insurance rates, how to find cheap car insurance, and even provide you with a list of top affordable car insurance companies in California. Get your quotes by Entering your ZIP code below.

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#1 – Geico: Top Overall Pick

Pros

• Affordable Rates for Safe Drivers: Geico offers some of the most competitive rates for drivers with clean records in California, starting at $33 per month.
• Extensive Discounts: Geico provides a wide range of discounts, including those for good students, military personnel, federal employees.
• User-Friendly Mobile App: Geico’s app is top-rated for easy policy management and claims. Explore further details on our Geico auto insurance review.

Cons

• Limited Local Agents: While Geico is great for digital management, it has fewer local agents than competitors like State Farm, which may be a drawback for those who prefer in-person service.
• Higher Rates for High-Risk Drivers: Geico tends to have higher rates for drivers with poor records or recent accidents, making it less ideal for those in this category.

#2 – State Farm: Best for Local Agents

Pros

• Extensive Local Agent Network: See our article titled “Does State Farm car insurance cover rental cars when I am traveling out of town? to see how State Farm’s extensive agent network.
• Steady Rate Reductions: State Farm offers rate reductions for accident-free policyholders, making it a solid choice for cheap car insurance in California.
• Strong Financial Stability: Rated A++ by A.M. Best, State Farm’s financial stability ensures policyholders can trust the company to pay out claims reliably.

Cons

• Higher Base Premiums: State Farm’s base premiums tend to be slightly higher than some competitors, which could be a con for budget-conscious customers.
• Less Attractive Discounts for Low Mileage: State Farm’s low-mileage discounts are less significant compared to competitors, impacting infrequent drivers.

#3 – Travelers: Best for High Satisfaction

Pros

• Wide Range of Coverage Options: Offers more add-on coverages than most competitors, including accident forgiveness and new car replacement, providing customizable policies.
• Hybrid and Electric Vehicle Discounts: Travelers provides additional discounts for hybrid and electric vehicle owners, making it an eco-friendly choice.
• Reliable Claims Processing: Travelers provides quick and fair claims processing. For affordable car insurance in California, see our article on “Bundling Home and Auto Insurance With Travelers.”

Cons

• Limited Availability of Local Agents: Travelers relies more on online or over-the-phone interactions, which might not appeal to customers who prefer face-to-face service.
• Higher Rates for Young Drivers: Travelers tends to have higher premiums for drivers under 25, which can be a drawback for younger demographics.

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#4 – Progressive: Best for Nationwide Presence

Pros

• Name Your Price Tool: This feature lets customers set a budget, and Progressive shows matching options. For details, see “How do I appeal a car insurance claim with Progressive?”
• Snapshot Program: Drivers can save with this usage-based program that rewards safe driving. It’s ideal for those seeking cheap car insurance in California.
• Large Variety of Discounts: Progressive offers discounts for bundling, safe driving, and more to help lower premiums. California drivers can use these to find cheap car insurance.

Cons

• Mixed Reviews on Claims Satisfaction: Progressive has satisfied customers, but some reviews mention inconsistent claims, which may deter those seeking cheap car insurance in California.
• Rate Increases After Accidents: Policyholders with accidents may experience significant premium increases, even with accident forgiveness options.

#5 – American Family: Best for Family-Friendly

Pros

• Generous Discounts for Young Drivers: American Family offers discounts for young drivers, like good grades, to lower cheap car insurance premiums in California.
• Personalized Coverage Options: American Family offers customizable coverage options, enabling customers to tailor their insurance policies to fit their needs.
• Gaps in Coverage Protection: For cheap car insurance in California, read our article titled “How to File an Car Insurance Claim With American Family Insurance Company“.

Cons

• Availability Limited to Certain States: American Family doesn’t operate in every state, which may limit options for those who move or travel frequently.
• Higher Base Rates for High-Risk Drivers: American Family may charge higher premiums for high-risk drivers than other budget insurers.

#6 – Amica: Best for Broad Network

Pros

• Top-Ranked Customer Satisfaction: Amica excels in claims handling and service quality, offering peace of mind for cheap car insurance in California.
• Dividend Policies for Added Savings: Amica’s dividend policies return part of the annual premium to policyholders, reducing costs.
• Accident Forgiveness Feature: Amica’s accident forgiveness stops rate increases after the first accident, making it valuable for cautious drivers.

Cons

• Higher Premiums for Certain Age Groups: Amica tends to have higher rates for younger and older drivers compared to some competitors.
• Limited Online Presence and Tools: Amica’s digital tools are less advanced than competitors, which may deter tech-savvy customers seeking cheap car insurance in California.

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#7 – AAA: Best for Customizable Policies

Pros

• Bundled Insurance and Membership Discounts: AAA offers bundling discounts, ideal for cheap car insurance in California. Read more through our AAA insurance review.
• Reputable Roadside Assistance: AAA is well-known for its reliable roadside assistance service, which can be included with auto insurance policies.
• Strong Regional Network: AAA has a robust network of local agents and offices, providing personalized service and face-to-face support.

Cons

• Membership Fees Required: To access AAA’s insurance offerings, a membership fee is required, which can be an additional expense.
• Higher Premiums Without Discounts: While AAA provides many discounts, the base premiums can be higher without them, making it less attractive for some drivers.

#8 – Erie: Best for Flexible Options

Pros

• Accident Forgiveness and Rate Lock: For drivers looking for cheap car insurance in California, these options provide valuable financial stability and help maintain low insurance costs over time.
• High-Value Coverage Options at Affordable Rates: Erie provides comprehensive coverage options like better car replacement and pet injury coverage at competitive prices.
• Strong Claims Satisfaction Ratings: Erie has high ratings for claims satisfaction, a key factor for customers. Learn more here: “Bundling Home and Auto Insurance With Erie“.

• Limited Availability Outside Specific Regions: Erie’s insurance is limited to certain states, which can be a drawback if you relocate.
• No Online Claims Process: Unlike some competitors, Erie does not offer a fully online claims submission process, which can be a disadvantage for tech-savvy customers.

#9 – Farmers: Best for Strong Reputation

Pros

• Strong Focus on Customer Education:  This transparency can be crucial for those searching for cheap car insurance in California, allowing them to select cost-effective policies.
• Discounts for Homeowners and Bundled Policies: Farmers offers significant discounts for policyholders who bundle home and auto insurance, providing great savings potential.
• Good Claims Satisfaction Scores: For cheap car insurance in California learn more in our article titled  “What documentation do I need to file an car insurance claim with Farmers Insurance?“.

Cons

• Higher Rates for High-Risk Drivers: Farmers tends to charge more for drivers with a history of accidents or violations, making it less ideal for high-risk categories.
• Fewer Online Discounts: Unlike some competitors, Farmers does not offer as many digital or usage-based discounts, which could limit savings opportunities.

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#10 –Allstate: Best for Discount Opportunities

Pros

• Accident Forgiveness Program: Allstate provides accident forgiveness for eligible drivers, preventing rate increases after the first accident. For more, see “How do I renew my car insurance policy with Allstate?”
• Discounts for Good Students and New Drivers: Allstate provides considerable discounts for young drivers and good students, making it a cost-effective choice for families.
• User-Friendly Digital Tools: Allstate’s mobile app and website are easy to navigate, allowing customers to manage policies, make payments, and file claims efficiently.

Cons

• Higher Base Premiums for Some Drivers: Allstate’s rates may deter price-sensitive customers, as cheaper car insurance options in California are available elsewhere.
• Mixed Customer Service Reviews: While many customers report positive experiences, some have noted inconsistencies in service quality, which could be a consideration.

Understanding Car Insurance in California

Before diving into how to find cheap car insurance, it’s crucial to understand the basics of car insurance in California and be prepared for any incidents on the road. Car insurance provides financial protection in case of accidents, theft, or other damages to your vehicle.

California Car Insurance Monthly Rates by Provider & Coverage Level

Having a complete car accident checklist is also essential for understanding the necessary steps to take after an accident, ensuring that you have all the required information for a smooth claims process.

California law requires all drivers to have liability insurance, which covers damages you cause to others. Additionally, you can choose to purchase optional coverage, such as comprehensive and collision insurance, to protect your own vehicle.

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When it comes to car insurance, it’s important to know the different components that make up a policy. Understanding these components will help you make informed decisions when choosing the right coverage for your needs. The most common components of a car insurance policy are:

1. Liability Coverage: This covers damages caused by you to others in an accident. It includes bodily injury liability, which pays for medical expenses, lost wages, and other damages to the other party, and property damage liability, which covers the cost of repairing or replacing the other party’s property.
2. Comprehensive Coverage: This protects your vehicle from non-collision incidents like theft, vandalism, or natural disasters. It covers the cost of repairing or replacing your vehicle if it’s damaged by something other than a collision.
3. Collision Coverage: This covers damages to your vehicle in the event of a collision. It pays for the cost of repairing or replacing your vehicle, regardless of who is at fault.
4. Medical Payments Coverage: This pays for medical expenses incurred by you and your passengers in an accident. It covers necessary medical treatments, hospital stays, and related expenses.
5. Uninsured/Underinsured Motorist Coverage: This provides coverage if you’re involved in an accident with a driver who doesn’t have insurance or enough coverage. It helps pay for your medical expenses, lost wages, and other damages caused by the uninsured or underinsured driver.

Now that you have a better understanding of the different components of car insurance, let’s take a closer look at California’s minimum insurance requirements. These requirements are in place to ensure that all drivers have a basic level of financial protection in case of an accident.

Factors Influencing Car Insurance Rates in California

Car insurance rates in California are influenced by several key factors, including age, driving experience, vehicle make and model, and driving record.

5 Common Car Insurance Claims in California

Young and inexperienced drivers, such as teenagers, typically face higher insurance rates due to their increased risk of accidents and limited experience.

Insurance companies view drivers with clean records as less likely to engage in risky behaviors, which can lead to lower rates. It’s important to understand who has access to your driving record and how long violations stay on it, as these factors influence insurance premiums.

Maintaining a clean record can help reduce your rates over time, as insurers regularly review driving histories to assess risk and determine premiums.

By their mid-20s, rates generally lower as drivers are seen as less risky. Insurance providers often reward drivers with proven records of responsible driving through reduced premiums, potentially offering some of the best car insurance with rental reimbursement coverage.

 

The make and model of a vehicle also impact insurance costs; luxury and sports cars often have higher premiums because they are more expensive to repair and have a higher risk of theft.

Conversely, economical and safe vehicles usually attract lower rates due to their cheaper repair costs and lower likelihood of being stolen.

California DUI Report Card: Car Insurance Discounts

Vehicles equipped with advanced safety features such as anti-lock brakes, airbags, and collision warning systems may further benefit from discounts.

California DUI Accidents & Claims per Year by City

These safety technologies reduce the risk of accidents and the severity of injuries, making such cars more attractive to insurance companies. A driver’s history, including traffic violations and claims, plays a crucial role in determining insurance rates.

Car Insurance Discounts From the Top Providers in California

Drivers with accidents, speeding tickets, or multiple claims are considered high-risk by insurers and may face higher premiums. Insurance companies view frequent claims as indicators of a higher likelihood of future incidents.

Since rates can vary significantly among providers based on their specific criteria and algorithms, it is advisable for drivers to compare quotes from multiple insurance companies to secure the best rates and coverage tailored to their needs.

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Finding Cheap Car Insurance in California

Now that you have a better understanding of car insurance in California and the factors that influence rates, let’s explore some strategies for finding affordable car insurance:

California, known for its stunning coastline, diverse landscapes, and bustling cities, is also home to a large number of drivers. With so many cars on the road, it’s crucial to have car insurance that provides the necessary coverage while also being affordable.

Finding cheap car insurance in California involves strategic planning, research, and understanding various factors that influence insurance rates. One of the most effective ways to secure a budget-friendly policy is by shopping around and comparing quotes from multiple insurers.

California DUI Car Insurance Discounts by Provider

Each company uses its own formula to determine premiums, considering factors such as age, driving history, and vehicle type. By exploring different options, you can gauge the range of prices and identify potential savings.

However, it’s crucial not to choose a policy based solely on cost. Be sure to evaluate insurance company reviews and ratings, in addition to coverage limits, deductibles, and customer service reputation, to ensure the policy suits your needs.

Taking advantage of available discounts is another way to lower your car insurance costs. Many insurance companies offer discounts for safe driving, which can significantly reduce premiums for those who maintain a clean driving record.

Other discounts, like multi-policy discounts, allow you to save by bundling your car insurance with other types, such as homeowners or renters insurance.

For affordable and adequate coverage, shop around, utilize discounts, and maintain a clean driving record to ensure a secure and enjoyable driving experience in California.

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Insurers regularly review your record, so consistent safe driving is critical to benefiting from lower premiums. Overall, finding cheap car insurance in California involves a proactive approach: shopping around, leveraging discounts, and being a responsible driver.

This combination not only ensures affordability but also provides adequate coverage for a secure and enjoyable driving experience in California. Compare your quotes by entering your ZIP code below.

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Frequently Asked Questions

What factors affect the cost of car insurance in California?

The cost of car insurance in California is influenced by several factors such as your driving record, age, gender, location, type of vehicle, coverage limits, and deductible amount.

How can I find cheap car insurance in California?

To find cheap car insurance in California, you can start by comparing quotes from multiple insurance providers. Additionally, maintaining a clean driving record, opting for higher deductibles, bundling your policies, and taking advantage of available discounts can help reduce your premiums. Enter your ZIP code below to start.

Can I drive without car insurance in California?

No, it is illegal to drive without car insurance in California, as outlined by what is car insurance “financial responsibility” law? All drivers must have at least the minimum required liability insurance coverage.

What are the minimum car insurance requirements in California?

In California, drivers are required to carry at least liability insurance with minimum coverage limits of 15/30/5. This means $15,000 for bodily injury liability per person, $30,000 for bodily injury liability per accident, and $5,000 for property damage liability per accident.

What additional coverage options should I consider for my car insurance in California?

While liability insurance is the minimum requirement, it is often recommended to consider additional coverage options such as collision coverage, comprehensive coverage, uninsured/underinsured motorist coverage, medical payments coverage, and rental car reimbursement coverage for enhanced protection. Enter your ZIP code below to get your quote now.

What is the minimum liability insurance requirement for drivers in California?

In California, the minimum liability insurance requirement is $15,000 for injury or death of one person, $30,000 for injury or death of multiple people, and $5,000 for property damage, in accordance with property damage law. This ensures that drivers can cover basic costs in the event of an accident.

How do advanced safety features in vehicles influence car insurance rates?

Vehicles equipped with advanced safety features, such as automatic braking and lane departure warnings, often qualify for discounts on insurance premiums. These features reduce the likelihood of accidents, making the car less risky to insure.

What role does a driver’s age play in determining car insurance premiums in California?

Generally, younger drivers, especially those under 25, tend to have higher insurance premiums due to a lack of driving experience and a higher likelihood of accidents. Conversely, older, more experienced drivers often enjoy lower rates due to their established driving history. Enter your ZIP code today to compare your quote now.

How can bundling different insurance policies help reduce overall premiums?

Bundling policies, such as auto and homeowners insurance, can lead to significant discounts from insurers, often ranging from 10% to 25%.

This raises the question, “Do I need multiple policies to get enough coverage?” It not only simplifies managing multiple policies but also encourages loyalty to a single insurance provider.

Why is it important for California drivers to maintain a clean driving record?

A clean driving record can help drivers secure lower insurance premiums, as insurers view it as a sign of responsible driving behavior. Additionally, having no accidents or violations can prevent surcharges or increases in rates when it’s time to renew the policy.

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Written by:

Laura Kuhl

Insurance Content Team Lead

Laura Kuhl holds a Master’s Degree in Professional Writing from the University of North Carolina at Wilmington. Her career began in healthcare and wellness, creating lifestyle content for doctors, dentists, and other healthcare and holistic professionals. In 2018, she started writing for the cannabis industry. She curated news articles and insider interviews with investors and small business ...

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Written by Laura Kuhl

Insurance Content Team Lead

Reviewed by:

Brad Larson

Licensed Insurance Agent

Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...

Full Bio →

Reviewed by Brad Larson

Licensed Insurance Agent

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