Top 8 Best Car Insurance Companies In California - Cheapest Quotes

Sally Polly March 13, 2023 | 12:35

There are many car insurance companies with good quotes in California, but if you are looking for companies that are financially affordable, take a look at the article below.

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Best Car Insurance Companies In California

California is a state in the Western United States. California borders Oregon to the north, Nevada and Arizona to the east, and the Mexican state of Baja California to the south.

It is the most populous and the third-largest U.S. state, with over 39.5 million people and a total area of approximately 163,696 square miles (423,970 km2). It has the highest population density of any subnational entity in the Americas and ranks 34th most populous in the world.

Since car insurance is essential and required if you want to own a car in the state, we have compiled a list of the best car insurance companies with cheap prices and good service in the article below.

Car insurance required in California

Insurance (also referred to as financial responsibility) is required on all vehicles operated or parked on California roads.

You must carry evidence of insurance in your vehicle at all times and it must be provided when:

Requested by law enforcement.

You are renewing the vehicle registration.

The vehicle is involved in a traffic collision.

Minimum Liability Insurance Requirements for Private Passenger Vehicles

Here are the minimum liability insurance requirements (per California Insurance Code §11580.1b):

$15,000 for injury/death to one person.

$30,000 for injury/death to more than one person.

$5,000 for damage to property.

Liability insurance compensates a person other than the policy holder for personal injury or property damage.

Comprehensive or collision insurance does not meet vehicle financial responsibility requirements.

California Minimum Car Insurance Requirements

Although there are many different kinds of auto insurance, only liability coverage is necessary in California. If you are found to be the cause of an accident, liability car insurance safeguards your financial security. It aids in covering the costs of treating the people who were hurt in an accident you caused and repairing their property. It's crucial to keep in mind that liability insurance doesn't cover expenses such as car damage or medical bills.

You must have two types of liability insurance with minimum coverage limits in accordance with California law:

The bare minimums for bodily injury liability insurance are $15,000 per person and $30,000 per accident.

Property Damage Liability Coverage – The $5,000 per accident minimum limit for Property Damage coverage.

When it comes to protecting you and your assets in the event that you are found to be at fault in an accident, California's legal minimum liability insurance is frequently insufficient.

Additional Coverage Forms

If you are at fault in an accident and are consequently required to cover the other party's medical expenses or auto repairs, liability insurance will shield you. What happens if you are hit by a driver who does not have enough insurance to cover your damages and injuries, or if you cause an accident and get hurt as well? These circumstances necessitate additional insurance protection, such as:

Collision Protection

Regardless of who was at fault, this covers your car's damages if it collides with another car or something else. Assume that you accidently rearrange a telephone pole. After you've paid your deductible, your collision insurance should assist with the cost of the repairs to your car.

Complete Protection

This insurance covers damage to your car that wasn't brought on by an accident. This covers burglary, fire, and vandalism. Comprehensive insurance helps with the cost of replacing expensive parts if someone steals them from your vehicle.

Instead, you might want to think about your deductible. Your deductible is the sum that must be paid out of pocket before Collision and Comprehensive Insurance kicks in to cover the remaining costs. Deductibles usually range from $100 to more than $2,000 per year. Your premium will be cheaper the higher your deductible is. While it may be tempting to select a higher deductible in order to save a few dollars on your insurance bill, keep in mind that you will be responsible for covering that high deductible yourself in the event of an accident.

Health Insurance Coverage

No matter who is at fault, this type of coverage, also known as MedPay, covers your medical expenses as well as any expenses incurred by any of your passengers.

Uninsured Driver Physical Injury (UMBI)

This covers injuries to you and other people covered by your policy resulting from an accident caused by an underinsured or uninsured driver (who has bodily injury liability coverage but has limits that are not high enough to fully cover your injuries). UMBI may also pay for lost wages or other general damages in addition to medical expenses.

Vehicle Uninsured Property Damage (UMPD)

Only if the uninsured driver can be identified and proven to have no insurance at all will UMPD be obligated to pay for damage to your car. No matter how much the total cost of repairs or how much the car is worth, this coverage can only contribute a maximum of $3,500 toward the repair or replacement of your vehicle.

Auto Collision Deductible Waiver for Uninsured Drivers (UMC)

If an identified and uninsured driver is to blame for the accident, UMC may waive your collision deductible. This coverage works well in conjunction with your collision insurance. When someone else crashes into them AND that person doesn't have insurance, most people don't want to have to pay their deductible!

Rent Expense Protection

You'll still need a way to get around if you have an accident and your car is being repaired. If you have a collision or comprehensive claim, rental expense coverage may be able to pay for a replacement vehicle while yours is being repaired.

Highway Assistance

This insurance can help cover the cost of a jumpstart, lockout service, or any number of other roadside assistance services that will enable you to resume driving more quickly. Roadside Assistance coverage can give you that peace of mind if you wouldn't feel comfortable changing a flat tire on the side of the road or approaching a stranger with jumper cables.

What are the best car insurance companies in California?

1. Geico

Geico is a respectable insurance provider with competitive rates, excellent client relations, and a user-friendly interface. In particular, Geico's auto insurance costs were consistently low for motorists who had not been in any recent accidents. The company's offerings are similar to those of other major insurers in many ways. However, Geico distinguishes itself by offering its clients the most practical online options for managing their insurance policies.

All 50 states and the District of Columbia are served by GEICO. When it comes to customer satisfaction with auto claims, GEICO is consistently ranked 13th. It is also our most cost-effective choice in our insider's guide to the top auto insurance providers.

Airbag, anti-theft, military, good student, good driver, and multi-car discounts are all available from GEICO. GEICO offers discounts for bundling your home and auto insurance, like the majority of insurance providers.

Liability insurance (required by the majority of states), comprehensive, collision, and full auto coverage are the four different categories of insurance coverage. According to Business Insider, your lender may demand comprehensive and collision coverage if you lease or finance your vehicle.

Features and discounts for GEICO's auto insurance

Discount for airbags: Get up to 23% off when purchasing an airbag-equipped vehicle.

Get up to 5% off for a car with anti-lock brakes that were installed at the factory.

Anti-theft system — A vehicle with an integrated anti-theft system qualifies for discounts of up to 23%.

Get up to 15% off when purchasing a new vehicle three model years or newer.

a capable driver If you've been accident-free for five or more years, you can get up to 22% off.

excellent student Students in high school or college who maintain a B average or higher can receive discounts of up to 15%.

Military personnel may receive discounts of up to 15% and up to 25% during times of emergency deployment.

Federal employees with a GS-7 or higher designation can receive discounts of up to 12%.

Partner organizations — GEICO offers discounts to professional associations, fraternities and sororities, and alumni associations.

GEICO insurance pros and cons

Pros	Cons
Established insurance company National presence Low rates Discounts for bundling insurance products	Ranked in J.D. Power's auto claims satisfaction survey, but failed to place for homeowners and life insurance

2. Mercury

With a few useful endorsements and mostly standard coverage options, Mercury's auto insurance is comparatively straightforward. It might be easier to decide whether to request a quote from Mercury if you are aware of the coverages, typical costs, and discounts offered by the company.

Types of protection

Mercury provides a range of comparatively common options for auto insurance coverage, including:

Liability protection: Liability insurance covers the harm and losses you are responsible for when you are at fault in an accident.

No matter who was at fault, collision protection will pay for any damage to your car that results from a covered collision.

Comprehensive coverage: This takes care of damage to your car brought on by a variety of events, such as collisions with animals, theft, and storm damage.

Regardless of who was at fault for the accident, medical payments coverage is intended to cover medical costs. Not all states offer medical payments coverage.

Personal injury protection, or PIP, is a type of insurance that, regardless of who was at fault in an accident covered by the policy, will cover the cost of any necessary medical care and other related expenses. Not all states have PIP available.

Rental car insurance: In the event of a covered loss, rental car insurance helps pay for the cost of a rental vehicle.

Depending on the state you reside in, you may be covered by this option if you have your ridesharing app open but have not yet accepted a passenger.

Roadside assistance: This plan includes services like towing, tire changes, battery jump starts, delivery of emergency fuel and fluids, and locksmithing.

Uninsured and underinsured motorist coverages protect you against bodily injury if you are struck by a driver who does not have insurance or does not have enough coverage to cover your costs. You might also be able to purchase uninsured motorist property damage coverage, which pays for damage to your vehicle and other property if it is damaged by an uninsured driver, depending on the state in which you reside.

The price of Mercury auto insurance

Mercury's average rates are marginally less expensive than the country's average price for auto insurance. Mercury's minimum coverage has an average annual premium of $553 as opposed to the $565 national average. In a similar vein, Mercury's full coverage premiums average $1,558 annually, while the national average for full coverage premiums is $1,674.

Auto insurance companies, however, base their rates on a wide range of variables. Your cost may be higher or lower than these averages.

Average annual premium for minimum coverage	Average annual premium for full coverage
$553	$1,558

3. Progressive

The Progressive Corporation is an American insurance company that ranks first among commercial auto insurers and is the third-largest insurance provider in the country. Jack Green and Joseph M. Lewis co-founded the business, which has its headquarters in Mayfield Village, Ohio, in the United States. The company offers coverage for commercial vehicles, motorcycles, RVs, boats, PWCs, and passenger cars. Through a few select companies, Progressive also offers home, life, pet, and other insurance options. Having grown internationally, Progressive now provides auto insurance in Australia.

Although USAA, Erie, Auto-Owners, State Farm, and Geico may be less expensive for some drivers, Progressive is one of the more affordable insurance companies on the market. Here is how Progressive compares in terms of cost to several well-known auto insurance providers.

Car Insurance Provider	Average Annual Cost Estimate
USAA	$1,013
Erie	$1,113
Auto-Owners	$1,229
State Farm	$1,339
Geico	$1,352
Progressive	$1,397
Nationwide	$1,533
Travelers	$1,617
Farmers	$2,032
The Hartford	$2,166
Allstate	$2,430

Of course, there are many variables that affect the cost of your auto insurance, and you might find wildly disparate quotes. Unless you reside in California, Hawaii, or Massachusetts, you will pay more for car insurance if you have bad credit. Your insurance options will also cost more if you have a bad driving record or are a young driver. Here are a few more Progressive full coverage rate projections for various driving profiles.

Progressive Average Annual Cost Estimate	National Average Annual Cost Estimate
35-year-old driver with good credit and driving history	$1,397	$1,732
24-year-old driver with good credit and driving history	$2,029	$2,363
35-year-old driver with poor credit	$2,514	$3,123
35-year-old driver with a recent accident	$2,471	$2,646
35-year-old driver with a DUI	$2,572	$3,188

4. AAA SoCal

Many of the dozens of AAA Auto Clubs in the US offer auto, homeowners, and life insurance.

AAA Auto Clubs and their insurance divisions operate independently. This means that discounts, benefits, and coverage options vary by location, so you must contact your local office to find out what's available.

"Triple A" may collect your information and refer you to another insurer, like Progressive or State Farm, to sell you insurance. AAA members get discounts when AAA brokers. Homeowners insurance uses this method.

AAA sells auto insurance directly in most places, and we found their policies to be above average in cost and benefits, with good customer service and a smooth claims process.

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AAA auto clubs across the U.S. sell car insurance through regional companies.

The California State Auto Association (CSAA) Insurance Group insures drivers in Northern California, Arizona, and parts of Pennsylvania. Auto Club Enterprise Group covers Southern California, Texas, and northern New England AAA members.

Location determines coverages, benefits, and discounts. All AAA insurance agencies offer the most common coverages, including:

When you cause an accident, liability coverage pays for the other party's medical bills and property damage.

Collision: Collision covers car damage.

Comprehensive: Comprehensive covers noncollision and animal-related car damage.

Uninsured/underinsured motorist coverage reimburses you for medical and car repair costs if the other driver is at fault and lacks car insurance.

Medical payments/PIP: Medical payments and PIP cover the cost of medical care for people in your car in an accident, regardless of fault.

AAA's mobile app provides digital proof of insurance in case of an accident or traffic stop. .

Many auto insurance coverages and benefits are region-specific. These may be included in a standard policy or added for a fee:

Gap insurance covers the difference between your car's replacement cost and your lease or loan balance if it's totaled.

Rental car reimbursement coverage: This pays for a rental car while your vehicle is being repaired after an accident. Some providers allow rideshare credit instead of a rental car.

Rental car damage coverage:

Nonowners insurance: If they drive, nonowners insurance covers liability for noncar owners.

Pet coverage: Car accident injuries to your pet are covered by pet coverage.

5. AAA NorCal

One of the biggest motor clubs in the American Automobile Association (AAA) National Federation is AAA Northern California, Nevada and Utah (AAA NCNU), formerly the California State Automobile Association (CSAA). It serves members in Northern California, Nevada, and Utah, as the name implies. The company's main office is in Walnut Creek, California.

Insurance discounts from AAA

The wide range of discounts you are eligible for is another benefit of choosing AAA for your auto insurance. These range from discounts for purchasing other types of insurance along with auto and home insurance to rewards for repeat business and defensive driving.

Insurance bundle discounts at AAA

Bundle	Max auto discount	Max other discount
Auto and home	15.7%	20% off home
Auto and condo	11.2%	20% off condo
Auto and renters	3.7%	10% off renters
Auto, home and life	19.4%	20% off home

As the discounts demonstrate, there are compelling reasons to consolidate your insurance with AAA, and despite the company's car-centric name, these other types of insurance can be obtained from them with confidence. We discovered, for instance, that AAA's life insurance provides adequate coverage on its own.

There are still a lot of other discounts to think about even if AAA's auto insurance is all you're interested in:

Save up to 27.3% when insuring two or more vehicles with the multi-vehicle discount.

Save up to 7.4% for qualified professions with certain professionals/alumni associations.

Discount for loyalty: Save up to 5.6% when you maintain coverage for at least a year.

Discount for safe drivers: Save up to 20% on all coverages.

Verified Mileage Discount: Provide current odometer readings when asked for and save up to 19.1% (based on vehicle's annual mileage).

Discount for students who are away at school for more than 100 miles without a vehicle: Save up to 46.7% on certain coverage when your driver-age student is away at school.

Discount for drivers who complete an approved course can save up to 4.7% on certain types of coverage.

Car club discount: If you are a member of an eligible car club, you can save up to 5%.

Does AAA provide affordable rates for car insurance?

Depending on the state you're in, AAA's car insurance rates change. The "AAA car insurance" that is advertised is actually provided by a number of state-specific insurers because AAA is actually a federation of automobile clubs from various states.

Your quote for auto insurance will be impacted by the unique underwriting procedures and regional market conditions used by each of these state insurers. Californian quotes were the ones we chose to collect for illustration. Remember that your rates may differ slightly if you reside somewhere else.

6. State Farm

With a 16% market share, State Farm dominates the auto insurance sector. The United States is covered by the insurance provider. Those looking for a more individualized experience can easily get in touch with a State Farm agent. This well-known insurance provider also has favorable ratings from reliable outside sources, including assessments of its financial outlook and customer satisfaction.

State Farm auto insurance offers coverage options and discounts on par with those of other major corporations, but those seeking an impressive array of extras and add-ons may be disappointed.

Auto Insurance from State Farm

All the common car insurance options that the majority of businesses offer are all available through State Farm. These consist of:

Insurance coverage for bodily injury and property damage

collision protection

Detailed auto insurance

medical bills (MedPay)

Protection from personal injury (PIP)

Coverage for uninsured or underinsured drivers (UM/UIM)

It should be noted that almost all states require BI/PD. Additionally, some states mandate UM/UIM or medical insurance. PIP is required in all no-fault states because it covers the driver regardless of who is at fault.

auto insurance add-ons

One of the reasons why State Farm insurance reviews are so positive is the availability of a variety of add-ons. These extras consist of:

Rental and travel expenses are covered by Car Rental Expense through State Farm while your vehicle is being repaired as a result of a covered claim (up to the limits you choose). If you are involved in an accident more than 50 miles from home and are unable to return home, State Farm will pay for meals, lodging, and transportation (up to $500) under the Travel Expenses policy. The insurance company will also pay for your return trip to pick up the vehicle. Finally, if you have an accident while driving a rental car, State Farm auto insurance will contribute up to $500 toward your deductible.

If you drive for Uber or Lyft, you should include this option in your insurance plan. That's because your vehicle's use for business purposes isn't covered by a typical auto insurance policy. The rideshare company typically covers you when you drive to pick up or drop off a passenger, but not when you are sitting around waiting to accept a trip from the app.

Roadside assistance from State Farm: State Farm provides 24-hour roadside assistance that includes one hour of labor on-site, towing to the closest repair facility, fluid delivery, jump-starts, spare tire installation, and lockout services.

7. Allstate

As an auto insurance provider, Allstate Insurance was established in 1931. A 12-month policy for a 1930 Studebaker was included in the first policy, which cost $41.60. Ever wondered what Allstate means? The name was inspired by a tire for a car in the Sears catalog. Behind State Farm, Geico, and Progressive, Allstate currently holds the fourth-place spot for private passenger auto insurance.

Car Insurance from Allstate

Auto, RV, ATV, motorcycle, and boat insurance are all available through Allstate. Allstate also offers classic car insurance for those who own antique cars and want to safeguard their vintage vehicles. optional coverage varieties consist of:

Towing service

medical bills

Underinsured and uninsured driver

sound system protection

Rental compensation

Protection from personal injury

Allstate provides accident forgiveness insurance as an additional add-on to your policy for drivers concerned about a rate increase following an accident. Even if the accident was your fault, this coverage "forgives" it and won't raise your premium.

You might want to think about new car replacement insurance if you recently purchased a new vehicle. If your car is two model years old or less and is totaled in an accident covered by your insurance, this coverage will replace it with a brand-new vehicle of the same make and model.

According to Forbes, Allstate additionally provides rideshare insurance and extra auto insurance for motorists traveling to Mexico south of the border.

Cheaper Allstate Auto Insurance

For safe drivers in particular, Allstate offers a number of discounts. Discounts like the smart student discount and the teenSMART driver education program are available to parents of teen drivers. Additionally, discounts are available for car features like anti-lock brakes and theft prevention equipment. Additional reductions on Allstate auto insurance include:

Discount for multiple policies: If you have multiple Allstate policies, you may be able to lower your premiums.

Discount for early signing: If you sign your policy seven days or more before it goes into effect, you might be eligible for a discount.

Discount for responsible payers: If you haven't had a cancellation notice within the last year, you may qualify.

discount on anti-lock brakes. Driving a vehicle with anti-lock brakes will result in lower auto insurance costs.

Discount for new vehicles: If you are the first owner of a vehicle from the current model year or one prior, you may be able to lower your premium payments.

discount for anti-theft. You'll pay less for auto insurance if your vehicle has an anti-theft device.

Discount for EZ Plan Pay: Save money by establishing an automatic payment schedule.

Discount for Allstate eSmart customers who enroll in an ePolicy and go paperless.

Discount for FullPay: You can save money by paying your yearly premium in full.

Discount from the safe driving club: If you meet the necessary standards for safe driving, you might be eligible for the club and receive a discount.

8. Farmers

Customers may benefit from discounted rates and a quick claim process thanks to Farmers' strong focus on customer service. With more than 48,000 exclusive and independent agents and roughly 21,000 employees available across all 50 states, excluding the District of Columbia, Farmers has a robust coverage network.

Policyholders are likely to have a positive experience dealing with Farmers' staff because most customer reviews of the company portray the company's agents favorably.

Farmers offers rates that are significantly more expensive than those of its main rivals. For instance, we discovered that Farmers' rates were 67% more expensive than those offered by Geico for a 35-year-old driver with a spotless driving record. In a similar vein, Value Penguin found that Farmers' home insurance rates were 30% more expensive than Allstate's rates.

Options for Farmers Auto Insurance Coverage

You can request an insurance quote from Farmers online, or you can speak with an agent for more specialized assistance. Farmers provides the following types of insurance:

Forgiveness for Mistakes

You can include this as an option in your policy. In order to prevent your premiums from rising, Farmers will waive one at-fault accident for every three years that you go without having one.

Collision

If you cause an accident, collision insurance will cover the cost of fixing your car. It covers fixes following collisions with objects, animals, and other automobiles.

Comprehensive

Repairs to your car resulting from events other than accidents, like storms or theft, are covered by comprehensive insurance.

Individualized Equipment

The option for personalized equipment will pay for the cost of repairing or replacing any after-market accessories you may have added to your car, such as speakers or unique wheels. Any vehicle with comprehensive or collision coverage is eligible.

Full Glass and Windshield

You won't have to pay anything out of pocket to replace your windshield or glass if you have this coverage. The deductible for glass repair and replacement is zero dollars.

Deductible Buyback for Glass

With a $100 deductible, it also covers glass repair and replacement.

Assurance of Value

Owners of antique cars and car collectors frequently choose this option. It compensates you if your car is a total loss at a predetermined, agreed-upon value.

Liability

Liability insurance, which protects you if you cause an accident, is mandated in almost all states. It covers the cost of damage and other people's injuries.

Useless Use

This pays a flat fee for transportation while your car is being fixed. It can be used to pay for rideshare services, taxis, car rentals, and public transportation.

medical expenses

Medical payments cover the cost of your and your passengers' medical care after an accident, regardless of who was at fault.

Replacement of old cars

If your car is totaled within the first two model years and 24,000 miles, new car replacement will pay to replace it with a new one of the same make and model.

the original equipment producer (OEM)

The cost of using factory-original parts in repairs is covered by OEM coverage. It can be used on vehicles up to ten years old.

Protection from Personal Injury (PIP)

Regardless of who was at fault for the accident, PIP will pay for your lost wages and rehabilitation costs after one.

Individual Umbrella

You can purchase additional liability insurance above the limits of your auto policy if you have personal umbrella coverage. In the event of litigation, it aids in asset protection.

Replacement parts

This is a popular choice among auto enthusiasts and will pay up to $750 to replace any spare parts you have on hand.

Roadside assistance and towing

This offers 24 hour assistance if your car is disabled. Towing assistance, tire changes, and locksmith services are all available.

Underinsured/Uninsured Driver

If you are in an accident with a driver who doesn't have insurance, uninsured motorist coverage lessens your losses. In the event that your collision partner has insufficient insurance, underinsured motorist protection will protect you. Both assist in covering costs associated with vehicle damage as well as any injuries you or your passengers may sustain.

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