California Car Insurance – Cheapest Auto Insurance in California
Shopping for the cheapest car insurance in California can be confusing with so many insurance companies claiming to offer the best quotes. With MyCarInsurance123.com, consumers have the opportunity to compare car insurance quotes in California and find the best companies with the cheapest rates.
However, before you go ahead and buy an auto insurance policy, it is important to learn about California car insurance rates, laws, regulations, and minimum coverage requirements.
Average Car Insurance Rates in California
In 2018, the average cost of car insurance in California was $180 per month or $2,150 per year, which was more expensive than the national average of $135/month, or $1,625 annually. If your premiums aren’t cheaper than the state average, you may want to consider comparing car insurance quotes from the best companies in California.
California Car Insurance Requirements
California car insurance requires drivers to buy at least $15,000/$30,000/$5,000 coverage. These minimum liability coverage requirements mean that your insurer will cover you up to $15,000 for an accident involving the death or injury of a single person, including medical expenses, and up to a total of $30,000 for an accident involving the death or injury of multiple people. Property damage liability coverage requires a minimum of $5,000 and includes coverage of public and private property repairs and claims.
Since California’s car insurance requirements are some of the lowest in the country, most experts recommend buying a policy with 100/300/100 coverage. These higher liability limits can protect your personal assets, including your home, business, savings, etc.
California Car Insurance Coverage
- Minimum Bodily Injury Liability: $15,000/$30,000 Limit
- Minimum Property Damage Liability: $5,000 Limit
California car insurance companies also offer optional uninsured or under-insured motorist coverage to protect you from other drivers who don’t have auto insurance or are minimally insured. Any difference between the insurance coverage and the total damages is the responsibility of the at-fault driver.
California Car Insurance Laws
Because California is an at-fault insurance state, you must carry liability auto insurance that will protect other drivers in the event of an accident that’s your fault. This means that the driver who caused the accident will be accountable, along with their auto insurance company, for any and all damages. Failure to comply with California minimum car insurance laws can result in stiff penalties from fines to license suspension.
Proof of Insurance
In California, all vehicles on public roads must maintain proof of insurance and keep the certificate with the vehicle at all times. The penalty for no proof of insurance carries a fine of up to $500 and can result in the suspension of your driver’s license and court fees. If there is a lapse in car insurance, auto insurance companies are required to report the lapse in coverage.
Once you have purchased a car, you have 30 days to buy auto insurance. When changing or canceling a policy, there is a 45 day grace period to obtain a replacement policy. If these deadlines are not met, your car’s registration can be revoked and penalties may apply. If the owner of the vehicle gets into an accident during this time, they are responsible for all damages and may not submit a claim or ask for reimbursement from a previous car insurance company.
Good Driver Discount Policy
Due to the passage of Prop 103, California law requires insurance companies to offer all good drivers a 20% discount. To qualify for a Good Driver Discount in California, you must:
- have been licensed to drive for the past 3 years;
- have no more than one point on your driving record during that time; and
- not have been the at-fault driver in an accident that resulted in injury or death.
Cheap Car Insurance in California
Here is a list of the best car insurance companies in California with the lowest rates. Finding cheap car insurance from the best insurer is especially important when you live in expensive cities such as Los Angeles, Glendale, San Diego, Sacramento, San Francisco, or Long Beach.
| Rank | Company | Average Annual Rates |
|---|---|---|
| 1 | USAA* | $647 |
| 2 | Amica Mutual | $834 |
| 3 | Sterling Casualty | $905 |
| 4 | Affirmative | $913 |
| 5 | Progressive | $929 |
| 6 | Loya | $937 |
| 7 | Mercury | $978 |
| 8 | Horace Mann* | $987 |
| 9 | AAA | $1,008 |
| 10 | Geico | $1,015 |
| 11 | California Casualty* | $1,037 |
| 12 | Metropolitan Direct | $1,105 |
| 13 | Unitrin Direct | $1,105 |
| 14 | Safeco | $1,115 |
| 15 | Allstate | $1,241 |
| 16 | 21st Century | $1,250 |
| 17 | Kemper | $1,276 |
| 18 | GMAC | $1,278 |
| 19 | Esurance | $1,314 |
| 20 | Infinity | $1,394 |
| 21 | Safeway | $1,408 |
| 22 | Nationwide | $1,492 |
| 23 | Farmers/Mid-Century | $1,508 |
| 24 | Federal Ins (CHUBB) | $1,630 |
| 25 | Pacific Specialty | $1,928 |
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Please note that USAA, Horace Mann, and California Casualty are specialty insurers; USAA serves military members and their families, Horace Mann specializes in insurance for educators, and California Casualty is limited to teachers, police officers, firefighters, and nurses.
Cheapest Auto Insurance in California By City
Below is a breakdown of the cheapest car insurance rates in California by city and company.
| City | Cheapest Insurer #1 | Cheapest Insurer #2 | Cheapest Insurer #3 | |||
|---|---|---|---|---|---|---|
| Los Angeles | Amica Mutual | $1,074 | Sterling Casualty | $1,232 | Western General | $1,251 |
| San Diego | Amica Mutual | $765 | California Capital | $798 | Progressive West | $810 |
| San Jose | Horace Mann | $695 | Amica Mutual | $755 | AAA | $795 |
| San Francisco | Amica Mutual | $850 | Loya | $893 | Horace Mann | $906 |
| Fresno | Loya | $789 | Affirmative | $811 | Western General | $825 |
| Long Beach | Amica Mutual | $834 | Progressive West | $990 | Sterling Casualty | $1,041 |
| Sacramento | Loya | $876 | Horace Mann | $910 | Amica Mutual | $929 |
| Oakland | Amica Mutual | $748 | Loya | $773 | AAA | $908 |
| Bakersfield | Workmen's Auto | $716 | Loya | $728 | Affirmative | $738 |
| Anaheim | Amica Mutual | $885 | Horace Mann | $895 | Affirmative | $960 |
| Santa Ana | Horace Mann | $895 | Amica Mutual | $927 | Western General | $952 |
| Riverside | Loya | $803 | Amica Mutual | $823 | Sterling Casualty | $861 |
| Stockton | Workmen's Auto | $750 | Affirmative | $794 | Horace Mann | $805 |
| Chula Vista | Progressive West | $714 | Amica Mutual | $740 | Alliance United | $777 |
| Fremont | Workmen's Auto | $704 | Amica Mutual | $705 | Loya | $752 |
| Irvine | Alliance United | $831 | Amica Mutual | $846 | Loya | $867 |
| San Bernardino | Geico | $812 | Loya | $814 | Amica Mutual | $846 |
| Modesto | Horace Mann | $805 | Workmen's Auto | $805 | Affirmative | $818 |
| Oxnard | Loya | $771 | Western General | $807 | Workmen's Auto | $822 |
| Fontana | Loya | $814 | Sterling Casualty | $878 | Amica Mutual | $905 |
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*In most California cities, USAA was the cheapest insurer, but since the company only serves military families, we excluded them from our rankings, so keep that in mind when comparing auto insurance quotes.
Largest Car Insurance Companies in California
While bigger isn’t always better, here is a list of the largest auto insurance companies in California ranked by market share.
| Rank | Company | Market Share |
|---|---|---|
| 1 | State Farm | 14.0% |
| 2 | Farmers | 13.2% |
| 3 | Allstate | 9.0% |
| 4 | Mercury | 8.5% |
| 5 | Auto Club (AAA) | 8.5% |
| 6 | CSAA Insurance | 6.6% |
| 7 | Geico | 6.5% |
| 8 | USAA | 4.4% |
| 9 | Progressive | 4.1% |
| 10 | Liberty Mutual | 3.60% |
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