The largest car insurance companies in California are State Farm, Geico and Progressive, according to S&P Global Market Intelligence. State Farm is the largest auto insurer in California as well as the largest property and casualty insurer in the United States overall, providing more than 87 million insurance policies. Each of the 10 largest companies has an A- rating or higher from AM Best for its financial strength and ability to pay out claims, and at least a B+ rating from the Better Business Bureau.
Top 10 Largest Car Insurance Companies in California
In addition to the top 10 most popular car insurance companies in California, there are locally based companies that are smaller but still worth checking out. For instance, Wawanesa Insurance is a major car insurance company that mainly operates in California.
Drivers in California need $15,000 of bodily injury liability insurance per person (up to $30,000 per accident) and $5,000 of property damage liability insurance. Collision, comprehensive and gap insurance may also be required by a lender or lessor if your vehicle is financed.
In addition, an optional but recommended type of coverage in California is … read full answeruninsured/underinsured motorist insurance. It replaces the liability coverage an at-fault driver should’ve had and pays for your costs up to your policy limits.
Here’s How Much Car Insurance Drivers Need in California:
Minimum Coverage Limit
Bodily Injury Liability Coverage (per person)
Bodily Injury Liability Coverage (per accident)
Property Damage Liability
If you lease or finance your car, you may be required to carry coverage types that are not mandatory under California law. Lenders or lessors usually require comprehensive and collision insurance. Collision insurance covers repairs to your car when you hit another car or object. If the damage to your vehicle was caused by something other than a collision—like a natural disaster, vandalism, falling objects, or animals—it is most likely covered by comprehensive insurance. Lenders may also require gap insurance, which covers the difference between what you owe on your loan or lease and what the vehicle is worth if it has been stolen or totaled.
Even if you’re not required to carry these optional coverage types, you may still need them. You can learn more about when to drop optional coverage and the penalties for driving without insurance in California to make sure you’re paying for the coverage you need.
Car insurance in California is $60 per month for minimum coverage and $214 per month for full coverage, on average. The cheapest insurance companies in California are Wawanesa, Geico and Grange, and getting quotes from several companies can help you find the best deal.
Average Cost of Car Insurance in California by Category
The average cost of car insurance in California is 1% lower than the national average auto insurance premium, and California ranks 33 out of 50 for the most affordable car insurance rates in the U.S.. There are several factors that affect how much you’ll pay for car insurance in California, including your driving record, age, location, the amount of coverage that you purchase, and the insurance company you buy it from.
Finally, it’s worth noting that car insurance premiums in California are high, compared to the cost of coverage in neighboring states like Oregon and Texas. You can find more details in the table below.
Cost of Car Insurance in California vs. Neighboring States
You can get car insurance discounts in California based on how you drive, the car you own, and your relationship with your insurance company. In California, car insurance companies are allowed to consider factors like marital status, driving experience, and insurance history when setting premiums. That means there are also discounts available for being married or driving safely over time. In California, insurance companies cannot use customer loyalty to determine rates. That means you can't get discounts for staying with the same company for a long time.… read full answer
Almost anyone can get a discount on car insurance in California because most insurance companies make it easy to qualify for a variety of savings. California insurers typically offer discounts that fall into one of three categories—policy discounts, driver discounts, and vehicle discounts.
Policy discounts typically reward customer behavior that is desirable to the insurance company. For example, most California drivers can save by registering for paperless billing or getting both home and auto policies from the same company. Driver discounts are available to California residents who are lower-risk to insure, like those with clean driving records. And vehicle discounts help drivers save if their car has certain safety features or anti-theft systems.
Car Insurance Discounts in California
How It Works
Under current law in California, an insurance company can offer a Customer Loyalty discount to its own customers, but can't offer that same discount to new customers who had continuous coverage for some period of time from a different auto insurance company.
Up to 10%
California state law requires insurance companies provide at least a 20% discount to all drivers who have been continuously insured for at least three years and who have one point or less on their driving record.
Insurance companies are required by state law to provide a discount to older drivers who complete an approved defensive driving course. Drivers must be 50 years of age or older to qualify.
5% to 10%
Drivers who have been insured for 6 months or more save on insurance.
5% to 25%
Billing and Payments
If you pay for your policy in full, set up automatic payments, pay online, or go paperless, you can save.
2% to 25%
Insure multiple vehicles or get different policy types (like home and auto) from the same company can earn a discount.
10% to 25%
Young drivers with a “B” average or higher are eligible for discounts.
8% to 25%
Some insurance companies offer discounts for drivers who are willing to have their driving habits monitored by an electronic device attached to your car and/or your smartphone.
1% to 30%
Cars featuring multiple airbags, anti-lock brakes, daytime running lights, and other safety add-ons can save on car insurance.
2% to 30%
Car alarms, LoJack, steering wheel locks, or other anti-theft features can make comprehensive coverage more affordable.
5% to 25%
Remember, discounts vary among different insurance companies, so it’s always best to contact the provider directly to determine which discounts you qualify for.
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