How to Get Cheaper Car Insurance in California

According to the Insurance Information Institute, the average California driver pays about $1,034 a year for car insurance. That makes California the 19th cheapest state for auto insurance in the U.S. But that doesn’t mean you can’t save even more money on your car insurance policy. Read on to find the best car insurance for you, your car, and most importantly, your budget.

In This Article:

• Cheapest Rates for Different Types of CA Drivers
• Cheapest Liability Rates
• Cheapest Full Coverage Rates
• Cheapest Cities for Car Insurance
• California Car Insurance Discounts
• Best Car Insurance Companies in California
• California Car Insurance Laws and Penalties
• Frequently Asked Questions

The Cheapest Car Insurance in California in 2022

If you’re looking for ways to save money on your car insurance, look no further. In the sections below, we’ve analyzed millions of quotes and broken down the best car insurance rates for all different types of California drivers. Young or old, good driver or spotty record, NorCal or SoCal, we’ve got the best rates for you. Read on to find out how to save some serious money on your next car insurance policy.

Cheapest Rates for California Teens

Finding affordable auto insurance for teen drivers can be challenging due to their age and lack of driving experience. Thankfully there are insurance companies in California that offer more affordable insurance options for the youngest drivers on the road.

As you can see, Hugo tends to be the cheapest car insurance company for California teens, with average rates as low as $65 a month for liability insurance. Some other companies offering affordable insurance for cheap drivers include Anchor General ($115/mo.), Kemper ($128/mo.), and Metromile ($136/mo.).

But just because these companies offer the cheapest average rates for teen drivers, it doesn’t mean they’ll be the cheapest for you or your child. Car insurance companies take a number of factors into consideration when calculating their rates, so it’s important to shop around and compare quotes from multiple companies so that you can be sure you’re getting the best deal.

Cheapest Quotes for Young Drivers in CA

Once drivers hit 25 years old they’ll see a steep drop in auto insurance rates, but until then they can expect to pay more for insurance, but with the right company they can still save. Here are the cheapest insurance companies for drivers 18-24 years old.

Once again, Hugo comes in as the cheapest car insurance company for young drivers in California with rates averaging $65/mo for liability insurance. Other affordable options include Direct Auto ($90/mo), Workmens ($98/mo) and Aspire ($102/mo).

When comparing car insurance rates for teens and young drivers, you might be surprised to find that both groups will pay the same amount with Hugo Insurance Company – $65/mo. However, that’s where the similarities end. Teen drivers can see rates as high as $223/mo (BridgeNet), while the highest average young drivers can expect to pay is $132/mo (Safe Auto). That’s a $90/mo difference or over $1,0000/year that teen drivers have to pay for insurance. Big difference, right?

While these are the most affordable companies on average, you still want to compare rates to see which company will provide the best rates for you based on your background, demographics, and other factors. Be sure to compare quotes from different insurance companies to ensure you get the most affordable premium.

Cheapest Car Insurance for Retired Californians

After enjoying years of lower auto insurance rates, drivers 65+ begin to see their premiums rates creep up. This is due to drivers in this age group being identified as riskier to insure by insurance companies. That doesn’t mean drivers 65 and up can’t find cheap car insurance though.

Here are the top 10 cheapest car insurance companies for retired drivers in California.

Drivers over 65 can enjoy the lowest rates with MetroMile with an average monthly premium of just $50/mo for liability-only insurance. Beyond MetroMile you can enjoy premiums of less than $75/mo from companies such as Direct Auto ($53/mo), Kemper ($66/mo), Clearcover ($70/mo), and Mercury ($71/mo).

These are some of the lowest rates for retired drivers on average, but be sure to still shop around to compare auto insurance rates amongst different companies and consider the discounts you might be eligible for to further reduce your monthly premium.

Cheapest CA Companies for Married Drivers

Love aside, marriage comes with several benefits – one being a decrease in auto insurance rates. So if you’ve already said “I do” be sure to also say “I do” to these insurance companies that offer the most affordable rates for married drivers in California.

Hugo gets the top spot once again as the cheapest car insurance provider, but this time for married drivers in California with monthly insurance rates averaging $41/mo. Aspire ($52/mo), Freedom ($58/mo) and MetroMile ($59/mo) are the next most affordable companies to look into.

As you can see, the monthly insurance rates double from Hugo at $41/mo to Foremost at $81/mo. So even within this list of the most affordable insurance providers, you want to be sure you choose the company that will best suit your budget without sacrificing quality coverage.

Cheapest Quotes for Single Drivers

Just because you haven’t made it down the aisle doesn’t mean you have to overpay for auto insurance. These 10 insurance companies will get you the cheapest car insurance in California as a single driver.

For single drivers in California, Hugo offers the most affordable insurance rates with an average monthly premium of $54/mo for liability insurance. Next, you can look to Direct Auto ($58/mo), Aspire ($59/mo), and MetroMile $63/mo) to offer the most affordable premiums if you’re not married.

A closer look at the two lists further reveals the disparity in rates between single and married drivers. While a married driver insured by Workmen’s will pay a monthly premium of $74, a single driver will be stuck paying $87/mo. This $13 difference may not seem like much, but it can quickly add up. In a year, you could pay over $150 more in car insurance premiums. 

Since your insurance rates tend to be a bit higher as a single driver in California compared to a married driver, be sure to check for discounts that will help reduce your monthly insurance premium.

Car Insurance Rates for Men vs. Women in California

On average men pay more for auto insurance than women, but as they age, this difference in rates decreases. Overall you’ll find men pay $90/mo for auto insurance while women pay about 5% less at just $84/mo.

5 Cheapest Companies for Men

5 Cheapest Companies for Women

When comparing the most affordable auto insurance rates for men and women, you’ll see Hugo offers the most affordable monthly premium for liability insurance on average at $55/mo and $50/mo respectively. The other cheapest companies remain relatively the same for men and women aside from Sun Coast ($55/mo) coming in number 2 for women while Kemper doesn’t make the list.

While the differences are slight, you’ll see higher rates for men within the same insurer. Women insured by Metromile will enjoy rates of $61/mo, while men will need to pay a bit more at $64/mo.

Gender aside, there is a slew of factors that impact the rate an insurance company quotes you, so be sure to compare the insurance rates.

The Cheapest CA Insurance Companies After a Ticket or Accident

Have a ticket or two on your driving history? Maybe a couple of accidents in your past? Your driving history will impact your auto insurance rate, but some companies are more forgiving by still offering affordable auto insurance rates even if your background isn’t spotless.

Cheap Quotes for Drivers with a Ticket on their Record

Cheap Quotes for Drivers with Multiple Tickets on their Record

As you can see, there can be substantial differences in auto insurance rates when you have one ticket on your record vs. multiple tickets on your record. At the lowest when comparing Aspire insurance, drivers with one ticket pay 6% less per month than drivers with multiple tickets. But when you look at the rates for the 5th most affordable insurance company, drivers with multiple tickets are paying almost 30% more for auto insurance.

So, if this is your case, it’s crucial that you compare auto insurance rates to find the cheapest car insurance based on your driving history, demographics, vehicle of choice and other factors insurance companies consider when quoting monthly premiums.

Cheap Car Insurance for Drivers After an Accident

Best Rates for Drivers with Multiple Accidents on their Record

Similar to having tickets on your driving record, the number of accidents you have can substantially impact your monthly premium. The difference between drivers with one accident insured by Hugo ($57/mo) compared to drivers with multiple accidents insured by MetroMile ($79/mo) is a difference of almost 40%! Yes, you read that right…40%.

When you’ve been involved in an accident, especially multiple accidents, you have to compare rates, seek out all the discounts possible and practice safe driving habits until they drop off your record. That’s the best way to secure the cheapest car insurance.

Most Affordable California State Minimum Liability Coverage

If you just want state minimum coverage for your vehicles, you can save big bucks. Many drivers who own their vehicle outright choose to go this route to enjoy additional savings. Save even more by choosing one of these insurance companies which offer the cheapest state minimum coverage in California.

You can get state minimum coverage in California for as low as $39 when you’re insured through MetroMile or Hugo. Aspire ($42/mo), Direct Auto ($46/mo) and Sun Coast or Freedom ($49/mo) come in next as the most affordable auto insurance providers when you’re looking for bare minimum coverage.

In order to get the most bang for your buck in terms of savings, be sure to compare auto insurance quotes to get the lowest rate, but also learn which discounts you can take advantage of. Many of these insurance companies will offer a variety of discounts including safe driver, good student, vehicle safety, multi-policy and more. You can experience additional savings of 10% or more with different discount programs.

California’s Cheapest Full Coverage Insurance

Prefer full coverage car insurance? Or maybe you’re required to purchase full coverage because your vehicle is leased or financed.

Either way, your protection level will increase and so will your insurance premiums. But, no worries. These auto insurance companies offer the lowest rates throughout California to help you save while maximizing your protection.

Hugo offers full coverage auto insurance for as low as $58/mo – not bad for more comprehensive coverage.

The next affordable option jumps 41% with Direct Auto at $82/mo and again almost 20% with MetroMile at $97/mo. These are massive jumps in insurance rates that can make a big impact on your monthly budget.

When comparing the prices of full coverage insurance to the state minimum in California, you’ll find that full coverage is more expensive on average. Let’s say you choose to purchase state minimum insurance from Freedom. You’ll pay an average of $49/mo for this coverage. However, if you decide that you’d rather have full coverage insurance with Freedom, you’ll pay over $90 more at $134/mo!

So, when looking at full coverage auto insurance, be sure to compare rates to find the most affordable options for you.

Most Affordable Insurance for Drivers in California’s Major Metropolitan Areas

Depending on where you live in California, the auto insurance company that can offer the most affordable rates will vary. If you’re in a major metropolitan area like Los Angeles County, these are the rates you can expect to pay for liability insurance if you choose from one of these more affordable insurance companies.

The cheapest insurance rates in major metropolitan areas in California are relatively similar with just a $10 difference between the 5 most affordable companies. Progressive starts at just $24/mo with Geico ($29/mo), Grange ($31/mo) coming in right after.

With rates so similar, other coverage perks, discounts, and features offered by the insurance company might be the major decision-making factor when selecting the best option for you.

Cheapest Car Insurance for California Suburbs

As you head out of the major cities to the suburbs like San Bernardino County, auto insurance rates and the best company to choose for affordable insurance varies a bit, but stays rather consistent. Here are the best companies to choose from for affordable liability insurance in the California suburbs.

In the California suburbs, you’ll pay the least using Geico ($27/mo), while insurance premiums for the other cheapest insurance companies stay in a similar range. Mercury is the most expensive of the 5 at just $31/mo, so there are several affordable insurance options.

Lowest Rates for Rural Areas in California

If you live in the rural areas of California like Calaveras County, you’ll see a slight drop in average insurance rates. While you’re looking for the most affordable rates, opt for one of the 5 most affordable insurance companies for coverage in rural California.

As you head to rural California areas, you’ll see rates drop more. Geico offers the most affordable rate at just $21/mo followed by Progressive at $24/mo. First American P&C ($26/mo), Mercury ($27/mo), and Infinity ($27/mo) offer similar rates as they round out the cheapest car insurance carriers in rural California.

The Best California Car Insurance Discounts

One of the best ways to lower your auto insurance rate is to take advantage of discounts offered by the insurance company. You’ll want to check with each individual company to see which discounts are available, but here are some common discount options.

• Multi-Car Discounts: If you insure multiple cars on your policy you can save up to 25% on your premium with a multi-car discount.
• Multi-Policy Discount: When you also need insurance for your home, apartment or even life insurance, bundling it with your auto insurance under the same policy can also help you save up to 25% on your premium compared to insuring them separately.
• Pay in Full Discount: Insurance companies will reward you for paying in full by offering a pay in full discount. Not only do you save on your premium, but you also don’t have to worry about forgetting to make your payment each month.
• Vehicle Safety Discount: Ensuring your vehicle has some of the latest safety features can help you save a bit on your auto premium. Some of the features that will earn you a discount include having anti-lock brakes and electronic stability control.
• Good Driving Discount: Save up to 40% on your insurance premium when you demonstrate good driving habits. You may need to use a telematics tracking system to do so, but the savings can be worth it if you can meet the standards.
• Defensive Driving Course Discount: While taking a defensive driving course might not be fun, it can save you 10% or more on your auto insurance. As long as you complete a state-approved course, you should be able to enjoy this discount.
• Usage-Based Discount: If you drive fewer miles than the average American, you might be eligible for a pay-per-mile also known as usage-based auto insurance discount. On this plan, you typically have a low monthly base price and pay extra based on the number of miles you drive.
• Customer Loyalty Discount: Have you been with the same insurance company for a long time? If so, you may be eligible for a customer loyalty discount. 
• Good Student Discount: If you’re currently a high school or college student living in California, you can save money on your insurance premium with the good student discount. To qualify, you’ll have to maintain a B average/ 3.0 GPA or higher. Students that rank in the top 20% of their class may also qualify for this discount. Check with your insurance company to find out their specific qualifications. 

The Best Car Insurance Companies in California

Each year, J.D. Power conducts a customer satisfaction survey to identify the top-rated auto insurance companies based on a 1,000 point scale.

Here are the top 10 best-rated car insurance companies in California for this year.

• Wawanesa – 853 points
• CONNECT by American Family – 839 points
• Auto Club of Southern California Insurance Group – 830 points
• GEICO – 828 points
• Progressive – 819 points
• State Farm – 818 points
• Mercury – 816 points
• Farmers – 811 points
• CSAA Insurance Group – 807 points
• Allstate – 803 points

California Car Insurance Requirements & Other Laws

Drivers in California must show financial responsibility – usually, this means drivers must carry proof of car insurance. In California, this proof can also take the form of a $35,000 deposit with the DMV, a $35,000 surety bond, or a DMV-issued self-insurance certificate. You must carry this proof with you at all times, in case you are in an accident or stopped by the police.

California also requires insurance companies to electronically report insurance information for private-use vehicles, so that the DMV can determine whether or not you meet the coverage requirements. California’s minimum insurance coverage levels are:

• Body Injury Liability: $15,000 for injury/death to one person; $30,000 for one accident
• Property Damage Liability: $5,000

Medical payments, collision insurance and comprehensive coverage are not required by law in California. However, between medical bills, bumper damage, and possible lawsuits, you may wind up owing far more than the state minimum coverage is able to cover. Keep this in mind when you’re shopping, and be sure to get the most appropriate coverage for you.

California’s Unique Auto Insurance Rules

• Good drivers are rewarded: Car insurance companies make your driving history one of the main factors in calculating your premium. A 20 percent discount is guaranteed for drivers who have been licensed at least three years, have no more than one point on their records in the last three years and haven’t been found at fault in a major accident in the last three years.
• Your credit doesn’t matter: In most states, insurers use credit-based insurance scores to calculate how likely it is that you’ll make a claim, which can affect your rates. In California, this practice is prohibited (as it is in Hawaii and Massachusetts). So even if Johnny Racer has terrible credit, it won’t bring up his insurance rates.
• Your location does matter: California car insurance law states that location must be considered a secondary factor in determining rates, making it less important than your driving record. However, your ZIP code still affects your insurance premiums.

California Car Insurance Penalties

Failing to meet California’s minimum requirements may result in any number of penalties. These include:

• Suspension of your driver’s license plus a fee and the costs associated with a license and registration reinstatement
• Impoundment of your vehicle
• Being required to file an SR-22 annually for three years after reinstatement

To learn more about the requirements and penalties, visit the California Department of Insurance.

California Low-Cost Automobile Insurance Program Explained

In California, drivers are required to carry at least $15,000 in bodily injury coverage per person, $30,000 in bodily injury coverage per accident, and $5,000 of property damage coverage. If you don’t want to carry insurance, you have a few other options for demonstrating financial responsibility, such as a $35,000 cash deposit with the state Department of Motor Vehicles or a surety bond for the same amount.

What if you can’t afford California auto insurance? Low-income drivers may be eligible to participate in the California Low Cost Automobile Insurance Program. This program is open to people 19 and older who have a valid California driver’s license, own a vehicle valued at $25,000 or less and meet income eligibility guidelines. Find out if you qualify by taking this online questionnaire.

What about high-risk drivers? If your driving record is tarnished, you need to shop around for the lowest rate available. In our California car insurance comparison chart, Johnny Racer is looking at monthly premiums as high as $775 because of his age and his two speeding tickets. That’s almost twice as much as the $417 offered by another carrier — and that’s why it’s so important to compare insurance quotes on compare.com before you buy. It’s free, fast and easy.

Additional Vehicle Costs and Fees in California

If you’re in the market for a new or used car, you’ll need to budget for more than just the vehicle’s sticker price. You’ll be on the hook for basic DMV fees like title, license plate, and registration fees no matter where and how you purchase your new car, truck or SUV, as well as buying a new car insurance policy for your car. But some buyers will find themselves with additional fees such as sales tax, documentation fees, personal property tax, emissions and inspection fees, hybrid and electric vehicle fees, lien recording fees and a slew of other costs.

Check out Compare.com’s comprehensive vehicle costs breakdown to make sure you account for all the added fees you might be on the hook for when buying a car in California.

Cheapest Cities for Car Insurance in California

As you’ll see below, car insurance rates can vary quite a bit from city to city. For example, San Ysidro drivers pay the lowest average rates in all of California at just $34 a month. On the other end of the spectrum, people in West Hills pay an average rate of well over $100.

Want to know where your city falls in that range? We’ve compiled a list of average rates for nearly 300 cities across California:

Click on the name of each city in the table above to find detailed breakdowns on all the factors that go into calculating your monthly premium. Here, you’ll find all the information you need on how things like driving record, age, gender, vehicle make and model, and more will affect how much you pay for car insurance in each locality.

And if you want to jump right in and see how much you’ll pay, simply enter your ZIP code below and find your best rate in minutes!

California Car Insurance FAQs

How much is car insurance in California?

Based on the amount of coverage you need and several other factors, insurance rates in California will vary. In general, the average auto insurance rate is $87/mo.

What car insurance is required in California?

In California the minimum insurance coverage levels are:

• Body Injury Liability: $15,000 for injury/death to one person; $30,000 for one accident
• Property Damage Liability: $5,000

What happens if you drive without insurance in California?

If you’re caught driving without insurance in California, your consequence will start small and increase if it happens more than once.

The first time around you’ll receive a fine of up to $250 along with penalty assessments.

Penalty assessments can vary based on where you live but range from $1 for every $10 up to $10 for every $10 you owe in fees. That means if your fine is $100, you could owe up to an additional $100 in penalty assessments which doubles the total amount you have to pay.

If you’re caught driving without insurance again within 3 years, you could receive a fine of up to $500 plus penalty assessments.

Also, anytime you’re caught driving without auto insurance the court can elect to impound your vehicle.

Does California require full coverage car insurance?

California doesn’t require full coverage auto insurance. You can choose to secure a higher level of auto insurance coverage which will generally include a combination of liability, comprehensive and collision coverage.

Can you get car insurance without a license in California?

While you can get car insurance in California without a license, it’s definitely more challenging to do. And if you previously lost your license due to driving infractions it presents even more difficulties. Your best bet for securing auto insurance without a license is to work with a smaller insurance company that might be more flexible with their requirements.

Methodology

All data referenced in this article comes from a combination of proprietary data — which is aggregated from millions of real customer quotes through Compare.com — and additional data gathered in collaboration with Quadrant.