Affordable Auto Insurance In California: Best Options

California is one of the most expensive states for car insurance, with quotes up to 24% higher than the national average. The average cost of full coverage in the Golden State is $2,599 per year, compared to a national average of $2,348. The cheapest car insurance in California for 2024 is offered by Geico, with average estimated rates of $484 per year or $40 per month for minimum liability coverage.

Cheapest car insurance in California: Geico

Car insurance in California is more expensive than in most other states, with an average annual premium for full coverage of $2,599, compared to a national average of $2,348. However, Geico offers the cheapest car insurance in California, with an average annual rate of $239, or $20 per month, according to NerdWallet's September 2024 analysis.

Since its inception, Geico has aimed to provide high-quality insurance at affordable rates. The company achieves this by selling directly to the consumer, cutting out the middleman and passing the savings on to its customers.

Geico provides 24/7 customer service and has been rated "Better Than Most" in the policy offering and pricing category and "Among the Best" for its website by J.D. Power. It also demonstrates excellent financial health, with top rankings from both A.M. Best and Standard & Poor's.

Geico offers a range of discounts, including multi-vehicle discounts of up to 25% and multi-policy discounts of up to 15%. It also offers discounts for students, seniors, federal employees, and military personnel.

According to a study by InsuranceBlogbyChris, Geico's rates are significantly lower than those of most top carriers. For example, for a single male driver in San Francisco with no violations and driving around 12,600 to 15,000 miles per year, Geico offered a rate of $725 for basic liability-only insurance, placing it fifth out of 48 companies. The overall average based on the 48 companies was $1,078, about $350 more than Geico's proposal.

California drivers must carry liability insurance with the following minimum coverage:

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

However, these limits will increase in 2025, with the minimum requirements becoming:

• $30,000 bodily injury liability per person.
• $60,000 bodily injury liability per accident.
• $15,000 property damage liability per accident.

Cheapest car insurance for young drivers: State Farm

State Farm offers competitive rates on car insurance for young drivers, along with excellent service, safe-driving tips, and savings of up to 25% to help reduce insurance costs. Young drivers can also benefit from State Farm's Steer Clear and Drive Safe & Save programs, which offer savings of up to 30% for safe driving habits.

State Farm also offers a Good Student Discount, where students with a 3.0+ GPA, ranked in the top 20% of their class, or named to the Dean's List/Honor Roll can save up to 25% on their auto insurance. This discount can last until the student turns 25.

Additionally, State Farm provides a Driver Training Discount for students under 21 who complete an approved driver education course, and a Student Away at School Discount for students under 25 who only use the car while at home during school vacations and holidays.

State Farm also offers bundling options, where customers can combine the purchase of a homeowners, renters, condo, or life insurance policy with auto insurance to save up to $1,273.

To get a quote for car insurance with State Farm, you will need the following information:

• Year, make, model, body style, or Vehicle Information Number (VIN) of the car
• Name of the registered owner
• Prior insurance carrier and expiration date
• Driver information, including name(s), date of birth, driver's license number(s), and state of issue
• Ticket and accident history
• License suspension information

Cheapest car insurance for drivers with a ticket: AAA NorCal

AAA car insurance is available in California through two separate companies: the Automobile Club of Southern California and CSAA. The Automobile Club of Southern California serves the following counties: Imperial, Inyo, Kern, Los Angeles, Mono, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara, Tulare and Ventura. CSAA serves all other counties in California, plus several other states.

AAA insurance is available to members only, and membership costs vary depending on the level of cover you require. Basic membership starts at $56 per year, and includes four service calls per year, while the Plus membership is $119 per year and includes enhanced benefits such as free towing up to 100 miles.

AAA offers a range of insurance products, including auto, home, renters, life, and pet insurance.

AAA's auto insurance covers the following:

• Bodily injury liability per person
• Bodily injury liability per accident
• Property damage liability per accident
• Uninsured motorist coverage per person
• Uninsured motorist coverage per accident
• Collision coverage with a deductible
• Comprehensive coverage with a deductible

Cheapest car insurance for drivers with an accident: Mercury

Mercury Insurance is one of the cheapest car insurance companies in California for rideshare drivers. It offers affordable rates and convenient online quotes and claim filing. Discounts are available for anti-theft features, bundling, and for paying premiums in full. However, Mercury Insurance is only available in 11 states, and it is rated below average for customer satisfaction by J.D. Power.

Cheapest car insurance for drivers with a DUI: Mercury

Mercury Insurance is one of the cheapest car insurance companies for rideshare drivers in California. It offers affordable rates and convenient online quotes and claim filing. Discounts are available for anti-theft features, bundling, and for paying premiums in full. Mercury Insurance is one of the few car insurance companies that offer rideshare coverage in California.

Mercury Insurance is rated below average for customer satisfaction by J.D. Power and has a somewhat high number of complaints. It does not offer gap insurance coverage.

Frequently asked questions