Getting car insurance in California will be different than getting car insurance anywhere else in the US. California's unique laws on auto insurance make a big difference, and the Golden State also offers a unique affordable car insurance program that isn't available elsewhere.
According to data from S&P Global, the average premium paid in the state of California is $1,397. That said, you'll still want to shop around to find the best coverage. Here's what you need to know about getting car insurance in California, and a few companies that offer some of the lowest estimated premiums to get you started on your search.
How do companies determine your premium in California?
Companies in California determine your premium, or the cost you'll pay up front for coverage, a little differently than in other states. California law prohibits considering age, gender or credit score in insurance pricing.
Other than those things, the standard pricing factors still apply. Years of driving experience, driving record, the type of car you drive, and where you live within the state will all be factors taken under consideration, as well as any previous insurance coverage.
The best cheap car insurance in California
Because California car insurance providers cannot use your credit score as a factor to determine your premium, where you live will be a big factor. Californians who live in more rural parts of the state will pay less, and those in urban areas will generally pay more.
California is a large market for car insurance, and that means that there's a big opportunity to shop around. Make sure to get quotes from several different insurance companies, and compare their coverage limits and types. You'll also want to consider the deductible, or the amount you'll pay out of pocket if you get into an accident. By shopping around, you'll be able to find the best rate for you.
The most popular car insurance companies in California
The following are the most popular car insurance companies in California, listed from companies that insure the most California drivers to the least:
| Company | Market Share (%) |
| State Farm | 12.66 |
| GEICO | 11.28 |
| Farmers Insurance | 9.33 |
| Auto Club Exchange (AAA) | 9.03 |
| Allstate | 8.39 |
| California State Automobile Association | 7.97 |
| Mercury Insurance | 7.74 |
| Kemper | 5.73 |
| Progressive | 5.46 |
| USAA | 5.05 |
| Liberty Mutual | 3.28 |
| Nationwide | 1.86 |
| Wawanesa General Insurance Co. | 1.56 |
| National General Holdings Corp | 1.48 |
| American Family Insurance | 1.43 |
The best car insurance companies in California based on customer satisfaction
Customer satisfaction with car insurance providers may factor into your decision. According to a J.D. Power survey, these are the top 10 providers based on customer rankings:
- Esurance
- Auto Club of Southern California Insurance Group
- Ameriprise
- Wawanesa
- GEICO
- State Farm
- Safeco
- The Hartford
- Progressive
- California Average
Sample car insurance quotes in California
In California, coverage costs will vary most by where you live. To find the companies with the cheapest policies, we used California Department of Insurance's Automobile Insurance Comparison tool to find the best companies for drivers in three different parts of California.
We based our analysis on standard coverage for a single adult driver, who drives no more than 10,000 miles per year, has five to eight years of driving experience, and owns a Honda Accord.
Driver with no violations
Here are the three best companies for rates for this driver in Santa Monica:
- Metropolitan Direct Property & Casualty car insurance: $1,122 per year
- USAA car insurance: $2,428 per year
- California Casualty Indemnity Exchange car insurance: $2,473 per year
This driver would see very different rates in Petaluma, a part of more rural Sonoma county. Coverage is much less expensive here than it is in urban parts of the state. The best companies for this same driver, living in Petaluma, are:
- Metropolitan Direct Property & Casualty car insurance: $670 per year
- USAA car insurance: $1,841 per year
- CSAA car insurance: $1,996 per year
Driver with a ticket and an accident
The rates change for the same single driver with five to eight years driving experience, who owns a Honda Accord and has one ticket and an accident on record.
Here are the three best companies for rates for this driver in Santa Monica with driving violations:
- Metropolitan Direct Property & Casualty car insurance: $1,208 per year
- USAA car insurance: $4,000 per year
- Permanent General car insurance: $4,107 per year
Here are the three best companies for rates for this driver in Petaluma with driving violations:
- Metropolitan Direct Property & Casualty car insurance: $726 per year
- USAA car insurance: $3,011 per year
- Western General car insurance: $3,222 per year
Driver seeking liability only insurance
For those seeking basic liability-only coverage, we searched for rates based on a single driver with five to eight years driving experience, who owns a Toyota Camry with no driving violations.
Here are the three best companies for rates for this driver in Santa Monica:
- California Casualty Indemnity Exchange car insurance: $708 per year
- Integon Preferred car insurance: $814 per year
- Metropolitan Direct Property & Casualty car insurance: $862 per year
Here are the three best companies for rates for this driver in Petaluma:
- Western General car insurance: $488 per year
- Metropolitan Direct Property & Casualty car insurance: $514 per year
- California Casualty Indemnity Exchange car insurance: $547 per year
California also offers a low-cost alternative for lower-income drivers
California's Department of Insurance also offers a low-cost auto insurance program. If you qualify, this program could help lower the costs of car insurance to $247 to $980 per year, depending on where you live.
This option is only offered only to Californians with a car less than $25,000 in value, and a good driving record. A maximum income limit applies, with a maximum income of $31,225 for a single person and $53,325 for a household of three.
California car insurance rates by metro area
Below is the estimated average annual premium of auto insurance policies per household in California's most populated metro areas.
| California metro area | Average annual car insurance premium |
Los Angeles-Long Beach-Anaheim | $1,382 |
San Francisco-Oakland-Berkeley | $1,486 |
Riverside-San Bernardino-Ontario | $1,366 |
San Diego-Chula Vista-Carlsbad | $1,407 |
Sacramento-Roseville-Folsom | $1,391 |
San Jose-Sunnyvale-Santa Clara | $1,532 |
Fresno | $1,310 |
Bakersfield | $1,272 |
Oxnard-Thousand Oaks-Ventura | $1,438 |
Stockton | $1,383 |
Modesto | $1,353 |
Santa Rosa-Petaluma | $1,425 |
Visalia | $1,298 |
Santa Maria-Santa Barbara | $1,363 |
Vallejo | $1,435 |
Salinas | $1,391 |
San Luis Obispo-Paso Robles | $1,386 |
Santa Cruz-Watsonville | $1,412 |
Merced | $1,313 |
Chico | $1,273 |
El Centro | $1,270 |
Redding | $1,279 |
Yuba City | $1,311 |
Madera | $1,336 |
Hanford-Corcoran | $1,325 |
Napa | $1,443 |
Eureka-Arcata | $1,241 |
Truckee-Grass Valley | $1,343 |
Ukiah | $1,242 |
Clearlake | $1,254 |
Red Bluff | $1,232 |
Sonora | $1,286 |
Susanville | $1,291 |
Crescent City | $1,233 |
The above data was obtained from S&P Global Market Intelligence.
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