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Geico offers the cheapest car insurance in California, with average estimated rates of $31 per month or $373 per year for minimum liability coverage
Discover if you are overpaying for car insurance below
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Finding cheap car insurance in California may never have been easy. But with rates going up throughout the state and several major insurers leaving the market, it’s become more difficult than ever for many drivers to find affordable coverage for their vehicles. However, car owners in California still have a few options from some of the best auto insurance companies in the country.
In order to help you find the most affordable rates for auto coverage in California, we at the MarketWatch Guides team looked over hundreds of rate estimates from dozens of providers using data from Quadrant Information Services. We also spoke to insurance experts and analyzed government data to learn why rates continue to go up in the state and how drivers can find the lowest premiums.
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On average, drivers with a clean record in California pay $50 per month for a minimum coverage policy and $193 monthly for full coverage based on our rate data. For most drivers in California, Geico offers the cheapest car insurance rates.
Since auto insurance rates are determined by personal factors, the cheapest rate for you depends on specific info about you and your vehicle. Below you can see who offers the cheapest California car insurance rates for each category we analyzed:
| Cheapest Car Insurance in California (by category) | Company | Amount (Monthly) |
| Minimum Liability Coverage | Geico | $31 |
| Full Coverage | Mercury | $146 |
| Young Drivers | Mercury** | $421* |
| After A Speeding Ticket | Mercury | $193* |
| After An Accident | Mercury | $252* |
| After A DUI | Mercury | $241* |
*These monthly car insurance rates are for full coverage policies.
**For 16-year olds
More: Cheapest Car Insurance
Insurance companies offering the top five cheapest auto insurance rates in California are:
While it tops our list of cheapest car insurance companies in California, USAA auto insurance is only available to military members, veterans and their families. You can click on any of the providers above to learn more or find out more about the state’s cheapest car insurance companies by large and medium-sized providers below.
According to J.D. Power, a large insurer is one that has written $4.5 million or more in direct premiums for personal auto lines. The cheapest large car insurance companies in California are Geico, Progressive, State Farm, Allstate, Farmers and USAA. You can find out more about the minimum and full coverage premium costs, along with the number of discounts and the cost rating our team gave each provider in the table below.
*Our research team considers nationwide factors when scoring providers. The ranking of providers in this table is specific to car insurance in California.
Note: While USAA auto insurance is the cheapest, it is only available to military members, veterans, and their families
More: Largest Car Insurance Companies
J.D. Power classifies mid-size insurers as those that have written between $1 and 4.5 billion in direct premiums for personal auto lines. Mercury is the cheapest overall mid-size insurance company in California, according to our research, offering rates at an average of $558 per year for minimum coverage and $1,748 per year for full coverage.
*Our research team considers nationwide factors when scoring providers. The ranking of providers in this table is specific to car insurance in California.
Note: CSAA is an AAA insurer that offers automobile and homeowners insurance in California.
Car insurance rates are tailored to individual drivers and vary widely based on location, driving record and several other key factors. In the following sections, we share the best rate estimates for drivers in a variety of categories. This information can give you a more accurate idea of what you might pay for coverage and who could offer you the lowest rates.
The coverage level you choose impacts how much you pay for car insurance. Most estimates you receive include minimum liability and full-coverage quotes. Below, we highlight providers offering the cheapest of both coverage options in California:
The cheapest car insurance our researchers could find for California drivers was $31 per month for a minimum coverage policy from Geico:
| Company | Estimated Monthly Rate | Estimated Annual Rate |
| Geico | $31 | $373 |
| CSAA | $38 | $453 |
| Progressive | $44 | $532 |
| Mercury | $46 | $558 |
| *USAA | $38 | $454 |
More: Cheapest Liability-Only Car Insurance
For full coverage, the cheapest policy estimate we found was $146 per month from Mercury Auto Insurance:
| Company | Estimated Monthly Rate | Estimated Annual Rate |
| Mercury Insurance | $146 | $1,748 |
| Geico | $153 | $1,837 |
| Progressive | $173 | $2,077 |
| Kemper | $193 | $2,313 |
| *USAA | $163 | $1,959 |
More: Cheapest Full Coverage Car Insurance
Minimum liability coverage is required in most states and cheaper overall, but doesn’t protect your or your passengers after an accident.
Age is one of the factors that typically impacts car insurance rates the most. While younger drivers can pay hundreds of dollars more for car insurance coverage than other age groups, that doesn’t mean affordable coverage can’t be found.
Even with Mercury offering the lowest full coverage rate for sixteen-year-old California drivers at $421, these teens still pay some of the highest car insurance costs in the state.
| Company | Estimated Monthly Rate | Estimated Annual Rate |
| Mercury Insurance | $421 | $5,052 |
| Geico | $431 | $5,174 |
| State Farm | $437 | $5,243 |
| Allstate | $539 | $6,470 |
| USAA* | $387 | $4,646 |
More: Cheapest Car Insurance For 16-Year-Olds
In California, 17-year-old drivers can typically find cheap car insurance through Geico, which offers average prices of $361 per month according to our research.
| Company | Estimated Monthly Rate | Estimated Annual Rate |
| Geico | $361 | $4,335 |
| Mercury Insurance | $369 | $4,434 |
| State Farm | $390 | $4,676 |
| Progressive | $416 | $4,992 |
| USAA | $293 | $3,520 |
Note: Costs were taken from 2022 information.
More: Cheap Car Insurance For 17-Year-Olds
According to our research, USAA and Mercury Insurance tend to offer the cheapest auto insurance for 18-year-old California drivers at $4,220 per year.
| Company | Estimated Monthly Rate | Estimated Annual Rate |
| Mercury Insurance | $352 | $4,220 |
| Geico | $354 | $4,246 |
| State Farm | $375 | $4,503 |
| Progressive | $403 | $4,841 |
| *USAA | $275 | $3,302 |
Note: Costs were taken from 2022 information.
More: Cheap Car Insurance for 18-Year Olds
California drivers in their early 20s may find cheaper rates than teens. On average, Geico provides the lowest rates for 21-year-old drivers in the state at $175 per month.
| Company | Estimated Monthly Rate | Estimated Annual Rate |
| Geico | $175 | $2,095 |
| Progressive | $225 | $2,705 |
| Mercury Insurance | $247 | $2,966 |
| Allstate | $274 | $3,291 |
| *USAA | $171 | $2,046 |
Note: Costs were taken from 2022 information.
More: Cheap Car Insurance For 21-Year-Olds
Our research shows, at $172 per month on average, Geico offers the cheapest auto insurance for 25-year-old Californians.
| Company | Estimated Monthly Rate | Estimated Annual Rate |
| Geico | $172 | $2,066 |
| Mercury Insurance | $182 | $2,182 |
| Progressive | $203 | $2,436 |
| CSAA | $235 | $3,821 |
| *USAA | $191 | $2,293 |
More: Car Insurance For 25-Year Olds
Recent accidents, speeding tickets or a DUI can cause insurers to consider someone a “high-risk driver,” leading to increased rates. Below we highlight the cheapest estimated rates for California drivers in these categories.
At 9% cheaper than the state average of $209 per month for this category, Mercury Insurance’s full coverage rate of $192 per month for drivers with a speeding ticket is the cheapest in California:
| Company | Estimated Monthly Cost | Estimated Annual Cost |
| Mercury Insurance | $192 | $2,310 |
| Geico | $239 | $2,869 |
| Kemper | $255 | $3,054 |
| CSAA | $264 | $3,165 |
| *USAA | $199 | $2,390 |
The average auto insurance rate for California drivers with a recent accident is $340 per month for full coverage.
| Cheapest Car Insurance in California Company | Estimated Monthly Cost | Estimated Annual Cost |
| Mercury Insurance | $252 | $3,025 |
| Geico | $264 | $3,165 |
| Kemper | $326 | $3,911 |
| CSAA | $329 | $3,947 |
| *USAA | $249 | $2,991 |
More: What Is Accident Forgiveness Coverage?
The cheapest full-coverage policies for California drivers with a DUI comes from Mercury Insurance for $241 per month on average, which is 55% lower than the state average of $540.
| Cheapest Car Insurance in California | Estimated Monthly Cost | Estimated Annual Cost |
| Mercury Insurance | $241 | $2,888 |
| Geico | $385 | $4,626 |
| Kemper | $415 | $4,978 |
| Progressive | $418 | $5,022 |
| Farmers Insurance | $430 | $5,164 |
More: How Does A DUI or DWI Impact My Car Insurance Rate?
The cost of car insurance in California is far above the national average of $2,008 based on our rate data, which is why many drivers should look into car insurance deals to lower their premiums.You can also speak with your current insurance agent to see if there are any discounts you can take advantage of.
When getting a quote from a car insurer, insurance companies set their rates based on several variables about you and your vehicle.
The variables California insurers consider when quoting your rate include:
That’s why the specific quote you receive will most likely differ from the estimates you see in this article. To get the cheapest quote, we recommend comparing multiple providers.
More: Compare Car Insurance
California drivers can expect to find an array of car insurance deals from car insurance companies. If you’re shopping for auto insurance, one of the best ways to get the cheapest rate for you is to use an online tool:
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The table below compares some discounts offered by the best cheap car insurance companies in the Golden State:
| California Car Insurance Discounts | Geico | USAA | Mercury | Progressive | CSAA Insurance (AAA) |
| Multi-policy | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ |
| Multi-vehicle | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ |
| Safe driver | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ |
| Student | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ |
| Defensive driving | ✔️ | ✔️ | ✔️ | ||
| Driver training | ✔️ | ✔️ | ✔️ | ||
| New vehicle | ✔️ | ✔️ | |||
| Car safety equipment | ✔️ | ✔️ | ✔️ | ✔️ | |
| Loyalty | ✔️ | ✔️ | ✔️ | ✔️ | |
| Military | ✔️ | ✔️ |
*These are the standard car insurance discounts offered by each company. Discount availability can vary by state, so you’ll need to speak with an insurance agent to find out which car insurance discounts you may qualify for.
More: Car Insurance Discounts
Here’s further information on common discounts provided by reputable car insurance companies.
The cheapest car insurance companies in California aren’t just affordable, each one also provides comprehensive insurance options for drivers in the Golden State. The sections below give further details into our top car insurance companies in California.
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Based on our rate data, the average full coverage premium in California increased by 10% in 2023, up to $2,313 per year. That makes auto coverage 15.2% higher in the state than the national average. Minimum coverage rates average $602 per year or $50 per month, which is 4% less expensive than the national average of $627.
*These estimates are based on the profile of a 35-year-old driver with a clean driving record and a good credit score.
More: Average Cost Of Car Insurance
Younger drivers have a much higher likelihood of being involved in car accidents, which is why they typically pay higher insurance costs than drivers in other age groups. In our rate research, we found that 16-year-old drivers pay an average of $6,725 per year for full-coverage car insurance compared with 35-year-old drivers whose car insurance costs are an average of $2,313 per year.
While rates vary from state to state, they differ based on where you live within California as well. Drivers in urban areas like San Diego and San Francisco tend to pay higher rates on average than those in more rural parts of the state. This table shows the average rate for a full-coverage policy in each city, based on the profile of a 35-year-old driver with a clean driving record and a good credit score.
| City in California | Estimated Monthly Rate | Estimated Annual Rate |
| Chula Vista | $178 | $2,138 |
| Fremont | $178 | $2,138 |
| Fresno | $179 | $2,142 |
| San Diego | $180 | $2,157 |
| San Jose | $184 | $2,203 |
| Oxnard | $184 | $2,204 |
| Huntington Beach | $185 | $2,223 |
| Bakersfield | $189 | $2,266 |
| Modesto | $193 | $2,311 |
| Irvine | $194 | $2,324 |
| Santa Clarita | $199 | $2,382 |
| Oakland | $203 | $2,434 |
| Anaheim | $204 | $2,442 |
| Santa Ana | $204 | $2,442 |
| Stockton | $206 | $2,467 |
| Moreno Valley | $206 | $2,475 |
| Long Beach | $207 | $2,482 |
| Ontario | $207 | $2,488 |
| Fontana | $207 | $2,489 |
| San Bernardino | $211 | $2,528 |
| San Francisco | $213 | $2,554 |
| Sacramento | $219 | $2,626 |
| Los Angeles | $271 | $3,255 |
| Glendale | $283 | $3,400 |
*Average rates above apply to the top three companies in each city and were taken from 2022 data.
The cost of car insurance is based on the risk of insuring a vehicle. This means that the greater the risk of loss from sources like car accidents, property crime or weather damage, the more expensive coverage is likely to be. Risk levels are higher in several categories for California drivers than many states, leading to higher premiums.
California auto premiums are high compared to many other parts of the country, but there are a few steps you can take to bring your rates down. Here are some of the most impactful:
Each state has financial responsibility laws that dictate what type of car insurance is required. According to the California Department of Insurance, these are the state’s required coverages and minimum coverage limits:
Based on our nationwide research of state insurance requirements, these requirements are comparatively low. California allows even lower limits for people who can’t afford standard insurance, too. However, it’s a good idea to go beyond state minimum liability limits since accident claims can easily exceed these amounts.
For example, if you’re in an accident and the other driver’s car repairs total more than $5,000, you’ll have to pay the difference out of your own pocket. In big cities like Los Angeles, where sports cars and luxury models are common, this may not be a risk you want to take.
Like most states, California requires drivers to have car insurance. However, drivers in the state of California have the option to comply with the law by depositing $35,000 cash into an account with the California Department of Motor Vehicles (DMV) or by proving they have the financial means to self-insure.
It’s illegal to operate a motor vehicle in California without having car insurance, making the deposit with the DMV or proving your financial means. If caught, you can be fined up to $250, have your car impounded and have your driver’s license suspended on your first offense. On your second offense, you can be fined up to $500 plus additional penalties and, again, have your vehicle impounded by the state.
Be aware that California only requires liability insurance, which covers other drivers’ damages after an accident but does not cover your own costs if you’re at fault. Besides liability coverage, there are other types of auto insurance that can be smart to have:
Collision and comprehensive coverage may be required by your lender if you are financing your vehicle.
Low-income California drivers can get affordable liability auto insurance through the California Low Cost Automobile Insurance Program (CLCA), which was established in 1999. In 2015, the program was revised to allow drivers with less than three years of experience behind the wheel to participate.
The California collision deductible waiver (CDW) waives a driver’s collision deductible when their vehicle is damaged by an uninsured motorist. Payment from this special type of coverage cannot exceed the actual cash value of the insured vehicle or $3,500.
There are a few instances in which CDW coverage doesn’t apply. These include when the insured driver is at fault or partly at fault. CDW also won’t cover hit-and-run accidents in which you can’t identify the driver or vehicle.
With the risk of losses from auto thefts and natural disasters on the rise, finding cheap auto insurance in California has become increasingly difficult — especially as more providers leave the state. However, based on our research, many drivers in California still have several options for high-quality coverage at manageable rates.
Overall, Geico offers the best and cheapest car insurance in California for most drivers, according to our research. The company has a combination of low prices, extensive coverage and a track record of solid customer service, plus it offers some extras that can come in handy. That said, you’ll only know if you’ve found the best rate for you by comparing multiple companies.
The first step toward finding the cheapest car insurance available to you in California is getting real quotes from multiple providers and comparing the estimates you receive. Just be prepared to provide basic information about your vehicle and anyone who drives it.
If you could benefit from getting your rates even lower than the cheapest ones you find, you can take steps like increasing your deductible or reducing or dropping coverage on your policy.
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Below are some frequently asked questions about cheap car insurance in California:
According to our rate estimates, the average cost for full coverage car insurance in California is $193 per month. However, you may be able to find cheaper rates depending on your driving experience and the coverage level you are looking for.
Based on our research, USAA tends to offer the cheapest car insurance in California for new drivers. Our rate estimates show that 16-year-old motorists pay an average of $4,646 per year or $387 per month with USAA.
Car insurance in California is 15% more expensive than the national average of $2,008. That makes California one of the most expensive states in the country for car insurance.
You may get a discount for paying for your car insurance in full. But if doing so would put you in a tight financial spot, you might be better off paying your insurance premiums on a monthly basis.
In most cases, you can’t “pause” your car insurance. Most states require you to maintain continuous coverage. The only times you can legally end and restart your coverage is when you are switching policies, changing cars or no longer own a car.
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
Our credentials:
800 hours researched
45 companies reviewed
8,500+ consumers surveyed
*Data accurate at time of publication.
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.
