Car insurance is a requirement to drive in almost all U.S. states, including California. And it’s generally not cheap, especially in this state. The average California driver spends $2,692 for full coverage on car insurance according to Bankrate data. That’s slightly higher than the national average of $2,545 per year for full coverage.
Fortunately, it’s possible to save on your car insurance whether you’re up in San Francisco or down in Los Angeles. CNBC Select compared rates, looking at dozens of auto insurance companies in the Golden State and picked the top six that stand out based on cost, coverage and customer service. (Read more about our methodology below.)
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Best for affordability
First Acceptance Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Policy highlights
First Acceptance Insurance Company has been underwriting and servicing insurance policies for more than 50 years. Its policies are affordable and sold by agents.
Pros
- Competitive prices in California
- Online payments available
Cons
- Online claims not available
- High NAIC complaint index
Who’s this for? First Acceptance is ideal for those whose main priority is getting the cheapest rate on their car insurance policy. It’s even budget-friendly to those with less-than-perfect driver profiles, including those with a speeding ticket.
Standout benefits: First Acceptance had the lowest sample premiums in California of the companies we considered. The company also offers coverage to those needing flexible payment schedules.
Average annual California sample premium: $1,878
Best for discounts
Capital Insurance Group Car Insurance
Cost
The best way to estimate your costs is to request a quote
Policy highlights
Capital Insurance Group focuses on the west coast and offers affordable prices. It features a number of discounts available for car insurance customers and has a relatively low complaint index with the NAIC.
App available
Pros
- Affordable sample premiums for customers in California
- Low NAIC complaint index rating
Cons
- Must be purchased through an agent
- Quotes not available online
Best from a big-name insurer
Safeco Car Insurance
Cost
The best way to estimate your costs is to request a quote
Policy highlights
Safeco customers can benefit from accident forgiveness, claims-free cash back, or diminishing deductibles if they qualify. Several discounts are available for those who have specific safety features, and those who bundle home, auto and other policies with the company.
App available
Pros
- Bundling discounts are available
- Add-on coverages available to customize your policy
Cons
- Above average NAIC complaint index
Who’s this for? Safeco is a part of Liberty Mutual and has strong car insurance coverage options for California drivers.
Standout benefits: With consistently low sample premiums and many savings options from discounts to diminishing deductibles, Safeco’s car insurance coverage can be an affordable option for many drivers.
Average annual California sample premium: $3,214
Best for customer satisfaction
CONNECT Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Policy highlights
There are two ways to get CONNECT auto insurance:
CONNECT auto insurance: Available in nearly all 50 states, CONNECT’s auto insurance includes a glass repair deductible waiver included with all policies, allowing customers to avoid paying a deductible if their windshield can be repaired rather than replaced. Comprehensive coverage also includes coverage for stolen car keys at no additional cost.
CONNECT auto insurance for Costco members: Not available in California or Florida, Costco members can receive an exclusive discount on coverage. Executive members get additional perks with included roadside assistance and lifetime renewability to prevent your policy from being dropped as long as you remain an executive member.
Pros
- Waiver of glass deductible is included and will waive your deductible if your windshield can be repaired instead of replaced
- Costco members can get an exclusive discount, and executive members get roadside assistance included.
Cons
- New Costco Connect auto policies are not available in California or Florida
Who’s this for? CONNECT is a good fit for those wanting to bundle and save, as the company also offers homeowners insurance and umbrella insurance.
Standout benefits: J.D. Power ranked CONNECT highly for customer satisfaction, giving it the second spot overall for customer satisfaction in California. For those with a clean driving record, a discount is available, and CONNECT also offers a unique Good Driver discount in California to reward good driving habits.
Average annual California sample premium: $3,483
Best for teachers and educators
Horace Mann Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Policy highlights
Horace Mann Insurance is focused on teachers and educators, and has been offering insurance for more than 75 years. Educators can receive special coverage benefits at no extra cost and discounts.
Pros
- Quotes available online or through an agent
Cons
- Above average NAIC complaint score
Who’s this for? While anyone can get a quote from Horace Mann, the company offers unique perks and benefits to teachers. Its Educator Advantage package offers teachers coverage for a replacement car if a new car is considered a total loss and no deductibles for covered collisions or vandalism on or near school property at no extra cost.
Standout benefits: Teachers can get auto insurance discounts and bundle home and auto insurance policies to save.
Average annual California sample premium: $2,585
Best for veterans, military members and their families
USAA Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Policy highlights
USAA’s auto insurance is available in all 50 states, Washington D.C. and some international locations. In addition to low rates and coverage options for unique circumstances, such as for active-duty members, customers have access to an intuitive mobile app.
Pros
- Cheapest insurer for liability-only coverage
- Stellar customer satisfaction
- Track record of financial strength
- Available in all 50 states
Cons
- Limited to military families and veterans
- No brick-and-mortar insurance agencies
- Customer service is not available 24/7
- Safe-driver discount not available in every state
Who’s this for? USAA is a standout choice for those who qualify for coverage, limited to those with a U.S. military affiliation.
Standout benefits: In addition to affordable prices in California, USAA consistently stands out in terms of customer satisfaction survey scores and claims satisfaction.
Average annual California sample premium: $3,024
More on our top auto insurance companies in California
First Acceptance
Capital Insurance Group
Safeco
CONNECT by American Family
App available
Yes
A.M. Best rating
A
Notable perks
Backed by American Family Insurance, CONNECT offers a simple online experience at an affordable price point. Benefits include a Glass Repair Deductible Waiver with all car insurance policies for no additional cost. Comprehensive coverage plans include Stolen Key Expense Coverage for no additional cost.
Horace Mann
App available
Yes
A.M. Best rating
A
Notable perks
Horace Mann offers educators unique perks not found elsewhere, such as up to $35 for transportation if you’re away from home and feel you can’t safely drive if you have rental reimbursement coverage. Additionally, educators pay no deductible for covered vandalism losses or collision claims on or near school property or while at a school-sponsored event. There’s also no deductible for collision claims with another vehicle insured by Horace Mann.
USAA
App available
Yes
A.M. Best rating
A++
Notable perks
USAA consistently leads the pack in customer service and financial strength in addition to offering relatively affordable premiums. While only available to military members and their families, it could be a standout option for those who qualify.
FAQs
How much does car insurance cost per year in California?
Car insurance costs about $2,692 per year for full coverage in California and $653 per year for minimum coverage according to Bankrate data. Costs vary based on your driver profile and records, speeding tickets and other factors. In California, car insurance companies can’t use credit histories in rating or underwriting auto insurance policies.
What is California’s minimum car insurance coverage?
Minimum car insurance coverage in California includes:
- $15,000 of bodily injury coverage per person
- $30,000 of bodily injury coverage per accident
- $5,000 worth of property damage
However, many people opt for more than this coverage and choose to get comprehensive and collision coverage, which can pay to fix your car after an accident or other damage.
What is recommended for car insurance coverage in California?
Minimum coverage car insurance only covers damages to others, including other drivers, their passengers and their property. If you’d like your car insurance to cover your belongings, your vehicle and you in an at-fault crash, it is recommended to get full coverage car insurance. If you lease or have a loan on your car, you’ll likely need full coverage car insurance.
Is California a no-fault state?
California is not a no-fault state, so if you are found to have been responsible for an accident, then you would be financially responsible for any injuries and property damage resulting from the accident.
What is the best car insurance for California?
What is the number one auto insurance in the U.S.?
Bottom line
California is one of the most expensive states to own a car in part because of its high gas prices and expensive insurance premiums. If you’re looking to lower your costs, it’s worth shopping around for new car insurance quotes to see if there are better options available. In addition to low prices, consider top companies that offer strong customer service ratings, financial strength ratings and low complaint indexes.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every car insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of car insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best car insurance companies in California.
Our methodology
To determine the best car insurance companies in California, CNBC Select analyzed dozens of U.S. insurance companies offering car insurance coverage in the state.
When narrowing down and ranking the best car insurance companies, we compared rates, focusing on cost with a sample premium. We also considered coverage, ease of use, customer satisfaction ratings from J.D. Power, financial strength ratings from A.M. Best and complaint indexes from the National Association of Insurance Commissioners.
Sample premium data was gathered from the California Department of Insurance’s Automobile Insurance Comparison Tool, and was based on full coverage for a single driver who:
- Has 5 to 7 years of driving experience
- Drives 10,000 miles per year
- Has no violations on their record
- Drives a Honda Accord
We considered sample premium data in several cities across California and gathered sample premium data for the same driver with the qualifications above in Burbank (Los Angeles County), Nob Hill (San Francisco County), Pacific Beach (San Diego County) and Rosemont (Sacramento County). These were averaged to create the state average annual sample premium.
Note that the premiums and policy structures advertised for car insurance companies are subject to fluctuate in accordance with the company’s policies.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
