The Cheapest Car Insurance in California in 2023

The average California driver pays just over $87 per month for car insurance, according to the Insurance Information Institute. That’s just a hair under the national average rate, but it doesn’t mean you can’t still find savings. We analyzed thousands of real-life quotes from drivers all over California so that you can find the best deal for you, your car, and (most importantly) your budget.

How Much Is Car Insurance in California?

Key Takeaways

• The average California driver pays around $52 per month for basic liability insurance.
• San Ysidro is the cheapest city in California for car insurance.
• Grange Insurance tends to offer the cheapest average rates for California drivers.

If you need car insurance, your first question is probably a simple one: How much will I need to pay? While auto insurance is never something you necessarily want to buy, the good news is that California is actually cheaper than average when it comes to the typical car insurance bill.

*Source: Insurance Information Institute

Across the U.S., the average driver pays about $89 per month for car insurance. In California, that number drops slightly to $87 per month. But as you can see at the bottom of this table, there’s a big difference between what different companies charge.

The cheapest car insurance company in California by statewide average rates is Grange, whose average policy runs $62 a month, according to Compare.com data. On the other hand, Chubb offers the overall most expensive rates at $156 a month — that’s over a 150% difference in price!

Since there’s such a big difference in prices between one company and the next, the best way to save on your California car insurance is to get quotes and compare prices regularly. Luckily, car insurance comparison sites — such as Compare.com — give you a way to compare rates from several top companies at once, saving both valuable time and money.

California’s Cheapest Car Insurance Companies

Each car insurance company has its own method for calculating insurance rates, and some weigh certain factors more heavily than others. The car insurance companies mentioned in the following sections tend to offer the most affordable rates in California. Just remember that shopping around and comparing rates is the only way to know which company will be the most affordable choice for your unique profile.

Cheapest overall auto insurance rates in California: Wawanesa Insurance

Getting the cheapest car insurance from California insurance companies is possible with some research. We analyzed dozens of insurance providers to find the insurers with California’s cheapest auto insurance rates, as shown in the table below.

Wawanesa Insurance offers the cheapest overall car insurance, at $105 per month. Integon National Insurance Company, the second-cheapest option, costs almost $15 more, closely followed by Mercury and United Financial Casualty Company. Grange Insurance rounds out the list at $137 per month.

Cheapest rates for California minimum coverage: Grange Insurance

State-minimum coverage is the most affordable insurance you can get — the minimum amount of insurance you need to legally drive on the road. It only covers the other driver’s medical expenses and damages to the other vehicle if you cause an accident. That means you’re on the hook for any personal expenses resulting from an accident if you’re found to be at fault.

Grange Insurance is the cheapest company in California for minimum coverage, averaging rates of just $62 per month. It offers multiple optional coverages Californians may find valuable, such as pet injury coverage, mobile device coverage, OEM parts, full glass, and gap insurance.

United Financial Casualty Company’s rates are $1 per month more expensive, while Wawanesa and Mercury are both $2 more per month than Grange. GEICO rounds out the top five at $67 per month.

Cheapest rates for full coverage auto insurance: Wawanesa

While full-coverage insurance is more expensive than standard liability, it also provides you greater peace of mind in an accident or other event involving your vehicle. Full-coverage insurance includes comprehensive and collision coverage, so you’re protected if a tree limb falls on your car, it’s stolen, and most things in between.

Wawanesa offers the most affordable car insurance in California for full coverage, at $145 per month. Roadside assistance, rental expenses, and custom equipment are just a few of the optional coverages you can get from Wawanesa .

Integon National Insurance Company is also an option, at $16 more per month. Mercury and United Financial Casualty Company follow closely, with monthly rates around $185 and $190, respectively.

Compare California auto insurance quotes by age

Your auto insurance rates will fluctuate over time due to your age. You’ll pay the highest rates as a teen and experience a steep decrease once you turn 25. You can expect your insurance to remain low until you hit retirement age, when your premiums may begin to creep back up.

Cheapest car insurance for California teens: Wawanesa

Car insurance costs more for teens because they lack experience behind the wheel, making them a much higher risk to insure.

Teens looking for cheap car insurance in California may want to consider Wawanesa Insurance, which offers an average rate of $171 per month for teens. The next cheapest option is Integon National Insurance Company, which is $42 more per month. Mercury Insurance, GEICO, and United Financial Casualty Company round out the rest of the top five cheapest companies for teens.

Cheapest car insurance for young drivers in California: Wawanesa

As a young adult driver, you’ll pay less than you did as a teen. That’s because you have more experience behind the wheel, decreasing your chances of being in an accident.

Wawanesa Insurance has the cheapest car insurance for young California drivers, with average rates of $102 per month. It offers several optional coverages , such as uninsured motorist with collision waiver and roadside assistance, to keep you going with little out-of-pocket costs.

Integon National and United Financial are about $15 more per month. Grange and Mercury are also affordable options, costing just a few dollars more per month, at $125.

Cheapest car insurance for Californians in their 40s: Wawanesa

Car insurance costs level off once you reach 40. By then, you’ll have lots of driving experience, and car insurance companies will consider you a low-risk driver if you maintain a clean driving record. These costs continue to decrease until you turn 50, at which point car insurance costs will typically be at their lowest.

Wawanesa continues the trend as the cheapest car insurance company for this age group, with average rates around $92 per month. The company offers multiple discounts California drivers in their 40s might be eligible for, such as good driver, loyalty, multi-policy, and multi-car.

Integon National Insurance Company is $2 more per month, with United Financial another $5. Grange and Mercury close out the top five companies, at $101 and $104 per month, respectively.

Cheapest car insurance for California retirees: Wawanesa

Once you turn 65, your rates decrease a bit more, but as you continue to age, you might see an upward trend. That’s because older drivers tend to have slower reaction times, increasing their chance of being in an accident.

Wawanesa Insurance is the cheapest option for California retirees. The company offers a defensive driver discount for drivers who are 55 and older after completing a state-approved defensive driving course.

Mercury Insurance is the next cheapest option, costing $9 more per month, with Integon National Insurance Company, Grange Insurance, and United Financial Casualty Company falling closely behind.

Compare California auto insurance quotes by driving record

Your driving record also affects your car insurance rates. Maintaining a clean driving record — free of at-fault accidents and traffic violations — indicates you’re a low-risk driver. Because of this, car insurance companies will reward you with more affordable premiums.

Your rates can increase after an at-fault accident or traffic violation. DUIs are even more serious and often lead to steep premium increases. Fortunately, traffic violations and at-fault accidents fall off your driving record within three years in California, so your rates will only increase temporarily.

Cheapest car insurance for good drivers in California: Wawanesa

You can expect to save on your insurance premium if you maintain a clean driving record. Insurance companies reward you with lower premiums because there’s less chance you’ll need to file a claim in the future.

Wawanesa Insurance rewards drivers with a good driving record with the cheapest rates — $75 per month. You could save even more with Wawanesa’s loyalty, affinity, anti-theft and multi-policy discounts.

United Financial is $2 more per month. GEICO and Mercury tie at $91 per month, while State National rounds out the top five, at $103 monthly.

Cheapest car insurance in California after a ticket: Wawanesa

Your car insurance rates may increase when you receive a traffic violation, such as a speeding ticket. Car insurance companies view speeding as an indicator you make risky decisions behind the wheel and are more likely to get into an accident. They tend to charge higher premiums to make up for that increased risk.

Even with a ticket, Wawanesa Insurance is still the cheapest car insurance for California drivers. If your driving record is otherwise clean, you could still qualify for Wawanesa’s good driver discount if you’ve been licensed for three or more years.

Integon National is another affordable option, costing $6 more per month. Mercury Insurance and Kemper tie at $119 per month, with Esurance closing out the top five cheapest companies.

Cheapest car insurance in California after an at-fault accident: Wawanesa

Being found at-fault in a car accident, no matter how minor, will typically increase your car insurance rates. The higher premiums can last up to five years, depending on your insurer and the extent of the accident.

California drivers with an accident in their claim history may find the cheapest car insurance rates with Wawanesa, at $114 per month. CIG Insurance is the next cheapest option but costs $19 more for the same coverage.

Grange Insurance is $2 more per month than CIG, and United Financial Casualty Company follows closely behind, at $140 per month.

Cheapest California car insurance after a DUI: Integon National Insurance Company

Getting convicted of a DUI or DWI is one of the most serious driving offenses you can commit. These charges carry fines of $500 to $2,000, and having one on your record can significantly increase how much you pay for car insurance.

Some insurers won’t cover you at all, so you may even have to switch to a company that works with high-risk drivers.

In California, a DUI or DWI can stay on your driving record for up to 10 years, so the increase in premiums will add up tremendously over time.

Integon National Insurance Company is the cheapest car insurance company for California drivers with a DUI, with average rates around $111 per month. Drivers can add emergency expense allowance coverage and may be eligible for its telematics program, DynamicDrive.

Wawanesa Insurance is $15 more, at $126 per month. Rounding out the list are Mercury, Kemper, and United Financial Casualty Company.

Compare auto insurance rates by marital status

Even your marital status affects how much you pay for car insurance. Insurance companies believe single drivers are more likely to take risks behind the wheel, so they charge them slightly higher premiums.

Cheapest car insurance for married California drivers: Wawanesa

After you get married, you’ll likely see your car insurance premiums drop since insurers view married couples as more stable and less likely to file a claim. Married couples also typically have more than one vehicle on their policies, which can result in more savings.

Married Californians may find the cheapest car insurance from Wawanesa, with average rates around $85 per month. Combining your policies could help you save more with the multi-policy and multi-car discounts .

Integon National Insurance Company is $10 more expensive, at $95 per month, and United Financial Casualty Company follows closely behind, at $96. Mercury is slightly higher, at $101 per month, with Grange Insurance finishing out the top five.

Cheapest car insurance for single California drivers: Wawanesa

Rates are typically higher if you’re single. You can expect to pay about 35% more for car insurance than if you were married because single drivers are statistically more likely to get into a car accident or file a claim than married.

Wawanesa wins yet another category for cheapest car insurance in California, with $120-per-month rates for single drivers. It shouldn’t be surprising that Wawanesa won the top spot for customer service in the California region in the J.D. Power 2023 U.S. Auto Insurance Study.

Integon National Insurance Company is the next affordable option, followed closely by Mercury Insurance. United Financial Casualty Company, at $143 per month, and CIG Insurance are the next-closest competitors.

The Cheapest Cities for Car Insurance in California

Car insurance rates will also vary depending on where you live in California. If you’re considering relocating and want to save money on your car insurance, you may want to move to one of these ten cities in California that offer the most affordable premiums.

The ten cities on this list share some common characteristics — the first being their size. For example, Crescent City had a population of just 6,676 in 2019. The less populated a city is, the less traffic it has, which reduces your chance of getting into an accident.

Crime rates can also affect how much you pay for auto insurance when living in different cities. Drivers in locations with higher crime rates are more likely to be victims of vehicle vandalism and theft, resulting in more expensive car insurance premiums.

Factors That Determine the Cost of Car Insurance in California

Many factors can impact how much you pay for auto insurance in California. Here are a few.

• Driving record: Car insurance companies offer lower rates if you have a clean driving record. Having at-fault accidents and traffic violations indicates you’re a higher risk to insure, driving your insurance premiums up.
• Credit rating: Many insurance companies believe if you have a low credit rating, you’re a financial risk and are more likely to take risks behind the wheel. As a result, you’ll pay more for auto insurance than drivers with a higher credit score.
• Address: Where you live plays a major role in how much you pay for auto insurance. Drivers living in densely populated areas are more likely to be in a car accident because of the traffic. So, if you live in a city, prepare to pay more than in a rural area. Crime rates are also higher in densely populated metropolitan areas, which can also increase your premiums.
• Vehicle value: It costs more to repair or replace a more expensive vehicle if you have to file a claim. Because of this, insurers charge higher premiums if your vehicle has a higher value. The opposite is true for more affordable cars.
• Marital status: Car insurance companies typically charge married drivers less for auto insurance than single drivers. However, the difference in premiums based on this factor is not significant.
• Age: Age is a major indicator of how much you’ll pay for auto insurance. Teen drivers pay higher rates because they lack driving experience. Once you turn 25, your insurance rates will decrease, reaching the lowest amount in your 30s and 40s. But, as you enter your senior years, you’ll start paying more again because seniors have slower reaction times that can increase their chances of being in an accident.

The Best Car Insurance Discounts in California

In addition to choosing a car insurance company that offers cheaper policies, you can save additional money by qualifying for car insurance discounts. Most car insurance companies offer multiple discounts, and while savings can vary, they can quickly add up. As you explore different car insurance options, consider the discounts you qualify for and how they will impact your rates.

Some discounts are more valuable than others, and we’ve highlighted the best options to help you save on your premium.

• Payment discounts: Consider signing up for automatic bill pay or e-statements to save 2% to 25% on your premiums.
• Good driver discounts: Focus on driving safely and maintaining a clean driving record to save 10% to 30% on your car insurance with a good driving discount.
• Usage-based discounts: If your car insurance company offers telematics programs to track your driving habits or mileage, you could save up to 30% on your insurance.
• Safety feature discounts: Car insurance companies even offer a safety feature discount saving you 2% to 30% on your premium if your vehicle has safety features like anti-theft devices and airbags.
• Good student discounts: High school and college students on your car insurance can save you anywhere from 5% to 20% by maintaining at least a B average.

Companies with the most discounts in California

The number of discounts companies offer varies, but these five insurers provide the most discount choices in California. Choosing a company with many discounts gives you a greater chance to save on your insurance.

Drivers can get the most discounts from The Hartford , with 13 available discounts, such as paying in full, getting a quote online, getting driver education, and driving a hybrid or electric vehicle.

CIG Insurance has the second-most discounts with 12, such as anti-theft, multi-policy, student discounts, and insurance storage discounts. AAA Insurance comes in third, with one fewer discount, offering discounts for bundling policies, continuous coverage, alumni and professional affiliations, and good driving.

Top 5 Tips for Getting Cheaper Car Insurance in California

There are several simple ways to get cheap car insurance in California. Here are our top five tips.

1. Decide how much coverage you need. While it’s essential to obtain adequate protection in case of an accident, you don’t want to pay more for coverage you don’t need. Consider how much risk you’re comfortable assuming and what coverage limits you want and need. You may also want to explore options like a policy with a higher deductible, which can help keep your monthly payments down.
2. Choose your vehicle carefully. More valuable cars will cost more to insure, so if you’re considering leasing or buying a new car, consider how it will affect your insurance rates. You may save money by choosing a more affordable model or a used vehicle.
3. Focus on driving safely. Getting in a car accident and receiving traffic violations can increase your car insurance rates. Focus on practicing safe driving habits and consider enrolling in a telematics program if your car insurance company offers one. These programs can lower insurance premiums if you practice safe driving habits.
4. Maintain good credit. Your credit score can affect your car insurance rates, so focus on improving it. Pay your bills on time, and keep your credit utilization rate under 30%.
5. Comparison shop. Each car insurance company uses its own formula to calculate rates. Shopping around is the best way to ensure you get the lowest premium for your coverage needs.

Compare.com’s 5 Best Car Insurance Companies in California

While it may be tempting to choose the car insurance company that offers you the lowest rates, selecting a company that provides a quality claims process, fantastic customer services, and the specific types of coverage you need is essential.

These five companies are some of the best options in California.

1. GEICO

GEICO offers affordable rates, high policy limits, and a broad selection of insurance products, including homeowners insurance. Other options like roadside assistance, rental car reimbursement, and even rideshare insurance mean you can tailor your insurance policy to meet your needs. GEICO’s DriveEasy usage-based program can also help good drivers save money.

2. Progressive

Progressive is known for providing quality customer service and maintains an A+ AM Best rating. The company offers many insurance options, including rideshare and pet coverage. Progressive automatically provides accident forgiveness for claims with damage under $500. The Progressive Snapshot app monitors driving habits and rewards safe drivers with discounts.

3. Allstate

Allstate has an A+ BBB rating and offers standard coverage and optional coverages like rideshare insurance and classic car coverage. While the company’s rates are higher than average, Allstate’s Drivewise usage-based program rewards good driving habits with discounts. Allstate also has a Claim Satisfaction Guarantee on its standard car insurance policies. If unsatisfied with your experience, you’ll receive a six-month credit on your premium.

4. State Farm

State Farm is known for being a trustworthy insurance company. The insurance giant has various coverage options, including rental car reimbursement and rideshare insurance. Its Drive Safe & Save program offers discounts to safe drivers, and the company also has several programs specifically for teens and young drivers.

5. Nationwide

Nationwide has an A+ BBB rating and an A+ AM Best Rating. While Nationwide’s rates tend to be higher, the company offers many ways to save, including a vanishing deductible and accident forgiveness.

California Auto Insurance Requirements

California requires every vehicle parked or operated on state roads to have a certain minimum of auto insurance. The minimum car insurance requirements are:

• $15,000 of bodily injury liability per person
• $30,000 of bodily injury liability per accident
• $5,000 of property damage liability

While California sets minimum coverage standards to drive, we recommend investing in more insurance than just the minimum. California is an at-fault state, meaning the driver responsible for a car accident is also responsible for the expenses resulting from the accident. In a severe accident, medical bills for one person can very quickly climb beyond $15,000, meaning you could be responsible for paying the difference out of pocket.

Consider investing in coverage with higher limits and possibly purchasing collision or comprehensive insurance as well. Collision and comprehensive coverages help pay the expenses you might face after an accident, a weather incident, or other damage to your vehicle.

Penalties for driving without auto insurance in California

The California DMV will cancel your registration if you fail to insure your vehicle. You must provide proof of insurance and pay a $14 fee to reinstate your registration.

Driving without auto insurance in California carries steeper penalties. You may face fines of $100–$200 for your first conviction. The court may also decide to impound your vehicle, and you would have to pay storage fees, which can quickly add up. For your second conviction, the fine ranges from $200 to $500, and the authorities may impound your vehicle again.

In addition to those fines, your local officials may implement penalty assessments, which could double or triple how much you pay.

What makes California car insurance unique?

“California is a tort state in terms of auto insurance,” says Linda Chavez , founder and CEO of Seniors Life Insurance Finder. This means if a driver is deemed at fault for an accident, “they must pay out of pocket for these damages, regardless of whether they have insurance or not.” For this reason, Chavez and most of her fellow insurance and financial experts recommend drivers buy enough liability insurance to cover their assets and protect themselves financially.

Although uninsured and underinsured motorist coverage isn’t a requirement in California, drivers should consider this optional coverage as an additional layer of protection from people who drive without insurance or with low liability limits. California has the 10th-highest rate of uninsured motorists in the country, with around 16.6% driving without insurance, according to the Insurance Information Institute.

SR-22 insurance in California

California requires certain high-risk drivers to file an SR-22 certificate proving their insurance meets the state’s requirements. Drivers caught driving without insurance or demonstrating high-risk behavior, like reckless driving or driving under the influence, must file an SR-22 certificate. If your car insurance coverage lapses during those three years, your SR-22 period resets, and you’ll need to maintain coverage for another three years.

Some auto insurance companies won’t provide SR-22 certificates, so you may need to switch to an insurance company specializing in covering high-risk drivers. You can also expect your premiums to increase because of your risky driving history.

Helpful Resources for California Drivers

• California Drivers Handbook
• California Insurance Requirements – California Department of Motor Vehicles (DMV)
• Submit a Claim – California Department of Transportation
• California Department of Insurance
• Get Insurance Help — California Department of Insurance

California Auto Insurance FAQs

Want to know more about car insurance in California? Here are some of the questions drivers like you most often ask.

What is the cheapest auto insurance company in California?

Wawanesa Insurance is California’s cheapest auto insurance company, with average premiums around $105 per month.

How much is car insurance in California?

Car insurance in California costs an average of $188 per month, according to Compare.com data.

Which city has the cheapest car insurance in California?

Crescent City has the cheapest car insurance in California, with premiums averaging just $37 per month for basic liability insurance. The city’s low population density likely contributes to the affordable premiums.

How much car insurance is required in California?

You must carry at least $15,000 of bodily injury liability per person, $30,000 of bodily injury liability per accident, and $5,000 of property damage liability to drive in California.

What happens if you get caught driving without insurance in California?

If you get caught driving without insurance in California, you’ll be fined $100 to $200 for your first offense. The state may also impound your vehicle, and you could be required to pay additional fees on top of the initial fine.

Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information. All of the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.