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Senior Director, Media Relations, with Triple-I
30+ years of industry experience
Leadership positions at several trade organizations
Updated
If you earn less than $39,125 per year in California, you may qualify for California’s Low Cost Auto Insurance Program (CLCA). CLCA offers low-income Californians affordable, liability-only coverage that meets the state’s minimum insurance requirements.[1]
To qualify for CLCA, you also must own a vehicle worth $25,000 or less, have a valid California driver’s license, have a good driving record, and be at least 16 years old. But even if you don’t meet all of the qualifications for CLCA, you can still find affordable car insurance from the right company.
In this guide, we’ll tell you the best auto insurers for low-income drivers in California and ways to save money on your car insurance.
USAA offers the most affordable liability coverage in California, with rates starting at $85 per month.
CLCA provides liability insurance to eligible low-income drivers.
USAA, Aspire General, and Sun Coast offer some of California’s cheapest liability-only auto insurance rates.
California drivers pay an average of $145 per month for car insurance. But you can likely find solid coverage for much less with some insurers. Here are the cheapest auto insurers in California, according to Compare.com data.
Company | Average Monthly Premium |
|---|---|
| USAA | $85 |
| Aspire General | $87 |
| Sun Coast | $90 |
| GEICO | $91 |
| Mercury | $94 |
| National General | $95 |
| Dairyland | $105 |
| Direct Auto | $111 |
| Root | $111 |
| Anchor | $121 |
| Farmers | $121 |
| Bristol West | $130 |
| State Farm | $131 |
| Kemper Special | $133 |
| Travelers | $137 |
| Kemper Rsvp | $147 |
| 21st Century | $150 |
| First Acceptance | $199 |
| Chubb | $233 |
USAA offers the most affordable auto insurance in the state, with average rates starting at just $85 per month. But the cheapest company overall might not be the cheapest option for you. At the end of the day, your insurance rates depend on factors like your age, driving history, and location.
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Liability-only insurance typically costs less than other coverage types, making it the most affordable option for low-income drivers in California. The insurers below offer some of the most competitive car insurance rates in the state, as well as some of the best discounts to help you save even more.
| User Reviews | 3.8 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.5 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $93/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $155/mo |
Allstate's score | Industry average | |
|---|---|---|
| Coverage options | 3.6 | 3.2 |
| Customer service | 3.9 | 3.6 |
| Discounts | 3.5 | 2.9 |
| Policy transparency | 3.6 | 3.1 |
| Value | 3.5 | 2.9 |
Customers appreciate the insurer's efficient service and knowledgeable agents but find the consistently rising rates and lack of communication to be major drawbacks.
Allstate offers California residents many ways to save on car insurance, including deductible rewards, and safe-driving bonuses.
But despite the range of coverage options available, you can’t get gap insurance unless you buy it when you buy your car.
More than 10 discounts available
A+ (Superior) financial strength rating from AM Best
Offers rideshare insurance
Average customer satisfaction rating from J.D. Power
High volume of customer service complaints
Gap insurance available only when buying a car
| User Reviews | 3.9 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.6 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $91/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $192/mo |
GEICO's score | Industry average | |
|---|---|---|
| Coverage options | 3.9 | 3.2 |
| Customer service | 3.9 | 3.6 |
| Discounts | 3.6 | 2.9 |
| Policy transparency | 3.8 | 3.1 |
| Value | 3.7 | 2.9 |
Drivers appreciate the easy communication and good customer service, but many are unhappy with the regular and significant price increases.
GEICO is well known for offering low rates to drivers of various ages, driving records, and insurance needs. The insurer also has a wide range of coverage options and discounts to help lower your rate even more.
But GEICO customers complain about price hikes, and some say they saved more money after switching to a new insurer.
Excellent mobile app and website
Many coverage options and discounts available
A++ (Superior) financial strength rating
Doesn't offer gap coverage
Below-average customer satisfaction in California
Customers report unexpected price increases
| User Reviews | 3.9 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.7 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $131/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $307/mo |
State Farm's score | Industry average | |
|---|---|---|
| Coverage options | 3.9 | 3.2 |
| Customer service | 4.0 | 3.6 |
| Discounts | 3.4 | 2.9 |
| Policy transparency | 3.9 | 3.1 |
| Value | 3.5 | 2.9 |
Customers appreciate the helpful agents and prompt claim handling, but many are unhappy with the constant rate increases, even for safe drivers. Some also reported poor customer service.
State Farm is a good option if you want low-cost car insurance with personalized service. The company offers plenty of discounts, coverage options, and safe-driving rewards.
Above-average customer satisfaction in California
A++ (Superior) financial strength rating
Local insurance agents available
Gap insurance limited to State Farm Bank customers
Policies must be purchased through a State Farm agent
Accident forgiveness not available
Compare personalized quotes and save money today.
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To legally drive in California, you must have the following minimum coverage:[2]
$30,000 per person and $60,000 per accident of bodily injury liability coverage to pay for the other driver’s medical expenses if you cause an accident
$15,000 in property damage liability coverage to pay for damage you cause to someone else’s property, like their car or a fence
$2,000 of optional medical payments coverage, which helps with your own medical costs after an accident, regardless of fault
$30,000 per person and $60,000 per accident of optional uninsured/underinsured motorist bodily injury coverage, which covers expenses if a driver with too little or no insurance hits you
$3,500 of optional uninsured motorist property damage coverage for your vehicle if an uninsured driver damages it
While state-minimum coverage costs less, the cheaper price comes with fewer financial protections. For example, if you have only $15,000 in property damage coverage and cause an accident with $30,000 worth of damage, you’ll have to pay the remaining $15,000 out of pocket.
Liability-only policies give you the minimum coverage you need to legally drive, but you might want more coverage. These additional options can increase your monthly premium, but they provide financial protection that could save you money in the long run.
Collision coverage: This pays for damages to your vehicle resulting from a collision, regardless of fault.
Comprehensive coverage: This covers non-collision incidents, like theft, vandalism, or weather-related damage.
Gap insurance: If you total your car, gap insurance covers the difference between the amount you owe on your loan and your car’s value.
Roadside assistance: Many insurers offer services like towing, tire changes, and battery jump-starts for a small additional premium.
Rental reimbursement: This helps pay for a rental car while you wait for vehicle repairs after a covered accident.
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While liability-only insurance might be the most affordable option, you may find cheaper coverage by taking advantage of discounts. Some discounts to ask your insurer about include:
Bundling: Combine your auto insurance with other policies, like homeowners or renters insurance, for a multi-policy discount.
Safe driver: Get a discount for maintaining a clean driving record for a specified period — usually three to five years.
Good student: Full-time students can get a discount for maintaining good grades, typically at least a B+ average.
Low mileage: Drive fewer miles annually to qualify for a low-mileage discount.
Defensive driving course: Get a discount for completing an approved driving course.
Vehicle safety features: You can get a discount if your car has safety features like anti-lock brakes or airbags.
Compare rates from California’s top insurers.
You might feel overwhelmed looking for car insurance on a tight budget, but we’re here to help. Below, we answered some common questions from California drivers.
USAA offers the cheapest auto insurance rates in California, with average liability-only policies starting at $85 per month. But your rates may vary, so compare quotes before buying.
Most insurers don’t offer coverage without a down payment, but some offer low-down-payment plans for eligible drivers. California’s Low Cost Auto Insurance Program offers affordable coverage for qualifying drivers.
You can get cheaper car insurance by comparing quotes from multiple companies, asking about discounts, and reducing your coverage. Low-mileage or safe-driving programs can also lower your rate.
California requires all drivers to have:
$30,000 per person and $60,000 per accident of bodily injury coverage
$15,000 of property damage coverage
$2,000 of medical payments coverage
$30,000 per person and $60,000 per accident of uninsured/underinsured motorist coverage.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates 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 the rates listed in this article have been collected 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 readers with insights into how auto insurance companies determine their premiums.
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Compare.com's #1 goal is to save you money. We publish resources that are based on hard-hitting data and years of industry experience to help you make more informed decisions with your wallet.
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Senior Director, Media Relations, with Triple-I
30+ years of industry experience
Leadership positions at several trade organizations
At Compare.com, it’s our mission to give you the tools to find the best (and most affordable) insurance for your unique needs and budget. We strive to provide information that’s helpful, clear, and unbiased, and we believe that comparing insurance companies should never put you at risk of spam. Our editorial team — which is made up of experienced writers, editors, insurance agents, and data analysts — has spent thousands of hours researching and creating the coverage overviews, side-by-side comparisons, and detailed reviews you see across our site.
While we make money through partnerships with some of the brands we discuss in our articles, our editorial team operates 100% independently, and these partners never influence or affect the topics, reviews, ratings, or recommendations we provide. We never guarantee favorable reviews or mentions in exchange for compensation from any brands or partners, and we uphold strict editorial standards to ensure our content is always independent, truthful, and unbiased.
