Car insurance is a requirement to drive in almost all U.S. states, including California. And it's generally not cheap, especially in this state. The average California driver spends $2,692 for full coverage on car insurance, according to Bankrate data. That's slightly higher than the national average of $2,545 per year for full coverage.
Fortunately, it's possible to save on your car insurance whether you're up in San Francisco or down in Los Angeles. CNBC Select looked at dozens of auto insurance companies in the Golden State and picked the top six that stand out based on cost, coverage and customer service. (Read more about our methodology below.)
Best car insurance in California
Best for affordability
First Acceptance Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
First Acceptance Insurance Company has been underwriting and servicing insurance policies for more than 50 years. Its policies are affordable and sold by agents.
Pros
- Competitive prices in California
- Online payments available
Cons
- Online claims not available
- High NAIC complaint index
Who's this for? First Acceptance is ideal for those whose main priority is getting an affordable car insurance policy. It had the lowest sample premiums in California of the companies we considered.
Standout benefits: The company offers coverage to those needing flexible payment schedules and those with less-than-perfect driving records.
Average annual California sample premium: $1,878
Best for discounts
Capital Insurance Group Car Insurance
Cost
The best way to estimate your costs is to request a quote
Policy highlights
Capital Insurance Group focuses on the west coast and offers affordable prices. It features a number of discounts available for car insurance customers and has a relatively low complaint index with the NAIC.
App available
Yes
Pros
- Affordable sample premiums for customers in California
- Low NAIC complaint index rating
Cons
- Must be purchased through an agent
- Quotes not available online
Who's this for? Capital Insurance Group is a member of the Auto-Owners Insurance Group, a well-known provider of cheap car insurance coverage.
Standout benefits: Its sample premium in California was generally near the top in terms of affordability, and the company has a low NAIC complaint index.
Average annual California sample premium: $2,068
Best from a big-name insurer
Safeco Car Insurance
Cost
The best way to estimate your costs is to request a quote
Policy highlights
Safeco customers can benefit from accident forgiveness, claims-free cash back, or diminishing deductibles if they qualify. Several discounts are available for those who have specific safety features, and those who bundle home, auto and other policies with the company.
App available
Yes
Pros
- Bundling discounts are available
- Add-on coverages available to customize your policy
Cons
- Above average NAIC complaint index
Who's this for? Safeco is a part of Liberty Mutual and has strong car insurance coverage options for California drivers.
Standout benefits: With consistently low sample premiums and many savings options from discounts to diminishing deductibles, Safeco's car insurance coverage can be an affordable option for many drivers.
Average annual California sample premium: $3,214
Best for customer satisfaction
CONNECT Auto Insurance for Costco members
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Powered by American Family, this auto insurance is available to Costco members with unique perks and discounts. Executive members get additional perks with included roadside assistance and lifetime renewability to prevent your policy from being dropped as long as you remain an executive member.
Pros
- Exclusive discount only available to Costco members
- Roadside assistance and lifetime renewability are included for executive members
Cons
- New auto policies are not available in California or Florida
Who's this for? CONNECT is a good fit for those wanting to bundle and save, as the company also offers homeowners insurance and umbrella insurance.
Standout benefits: J.D. Power ranked CONNECT highly for customer satisfaction, giving it the second spot overall for customer satisfaction in California.
Average annual California sample premium: $3,483
Best for teachers and educators
Horace Mann Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Horace Mann Insurance is focused on teachers and educators, and has been offering insurance for more than 75 years. Educators can receive special coverage benefits at no extra cost and discounts.
Pros
- Quotes available online or through an agent
Cons
- Above average NAIC complaint score
Who's this for? While anyone can get a quote from Horace Mann, the company offers unique perks and benefits to teachers. Its Educator Advantage package offers teachers coverage for a replacement car if a new car is considered a total loss and no deductibles for covered collisions or vandalism on or near school property at no extra cost.
Standout benefits: Teachers can get auto insurance discounts and bundle home and auto insurance policies to save.
Average annual California sample premium: $2,585
Best for veterans, military members and their families
USAA Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
USAA's auto insurance is available in all 50 states, Washington D.C. and some international locations. In addition to low rates and coverage options for unique circumstances, such as for active-duty members, customers have access to an intuitive mobile app.
Terms apply.
Pros
- Lowest average premium for minimum coverage
- Highest customer satisfaction ranking
- Superior discounts for military members
Cons
- Only available to military members, veterans and their immediate family members
Who's this for? USAA is a standout choice for those who qualify for coverage, limited to those with a U.S. military affiliation.
Standout benefits: In addition to affordable prices in California, USAA consistently stands out in terms of customer satisfaction survey scores and claims satisfaction.
Average annual California sample premium: $3,024
More on our top auto insurance companies in California
First Acceptance
App available
No
A.M. Best rating
C++
Notable perks
First Acceptance offered some of the most affordable sample premiums of the companies we compared in California. It also offers a range of other types of insurance, including life insurance, travel insurance, pet insurance and more.
Capital Insurance Group
App available
Yes
A.M. Best rating
A
Notable perks
Capital Insurance Group's premiums are competitive, and the company also boasts a relatively low NAIC complaint index score.
Safeco
App available
Yes
A.M. Best rating
A
Notable perks
Safeco offers auto insurance on top of other insurance types, including motorcycle insurance and home insurance to bundle your coverage and save.
CONNECT by American Family
App available
Yes
A.M. Best rating
A
Notable perks
Backed by American Family Insurance, CONNECT offers a simple online experience at an affordable price point. Benefits include a Glass Repair Deductible Waiver with all car insurance policies for no additional cost. Comprehensive coverage plans include Stolen Key Expense Coverage for no additional cost.
Horace Mann
App available
Yes
A.M. Best rating
A
Notable perks
Horace Mann offers educators unique perks not found elsewhere, such as up to $35 for transportation if you're away from home and feel you can't safely drive if you have rental reimbursement coverage. Additionally, educators pay no deductible for covered vandalism losses or collision claims on or near school property or while at a school-sponsored event. There's also no deductible for collision claims with another vehicle insured by Horace Mann.
USAA
App available
Yes
A.M. Best rating
A++
Notable perks
USAA consistently leads the pack in customer service and financial strength in addition to offering relatively affordable premiums. While only available to military members and their families, it could be a standout option for those who qualify.
FAQs
How much does car insurance cost per year in California?
Car insurance costs about $2,692 per year for full coverage in California and $653 per year for minimum coverage according to Bankrate data.
What is California's minimum car insurance coverage?
Minimum car insurance coverage in California includes:
- $15,000 of bodily injury coverage per person
- $30,000 of bodily injury coverage per accident
- $5,000 worth of property damage
However, many people opt for more than this coverage and choose to get comprehensive and collision coverage, which can pay to fix your car after an accident or other damage.
What is California full coverage car insurance?
Full coverage car insurance in California includes bodily injury coverage per person, per accident, and coverage for property damage like minimum coverage does. However, full coverage can include higher limits, and will also include comprehensive and collision coverage.
Is California a no-fault state?
California is not a no-fault state, so if you are found to have been responsible for an accident, then you would be financially responsible for any injuries and property damage resulting from the accident.
Bottom line
California is one of the most expensive states to own a car in part because of its high gas prices and expensive insurance premiums. If you're looking to lower your costs, it's worth shopping around for new car insurance quotes to see if there are better options available. In addition to low prices, consider top companies that offer strong customer service ratings, financial strength ratings and low complaint indexes.
Read more
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every car insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of car insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best car insurance companies in California.
Our methodology
To determine the best car insurance companies in California, CNBC Select analyzed dozens of U.S. insurance companies offering car insurance coverage in the state.
When narrowing down and ranking the best car insurance companies, we focused on cost with a sample premium, coverage, ease of use, customer satisfaction ratings from J.D. Power, financial strength ratings from A.M. Best and complaint indexes from the National Association of Insurance Commissioners.
Sample premium data was gathered from the California Department of Insurance's Automobile Insurance Comparison Tool, and was based on full coverage for a single driver who:
- Has 5 to 7 years of driving experience
- Drives 10,000 miles per year
- Has no violations on their record
- Drives a Honda Accord
We considered sample premium data in several cities across California and gathered sample premium data for the same driver with the qualifications above in Burbank (Los Angeles County), Nob Hill (San Francisco County), Pacific Beach (San Diego County) and Rosemont (Sacramento County). These were averaged to create the state average annual sample premium.
Note that the premiums and policy structures advertised for car insurance companies are subject to fluctuate in accordance with the company's policies.
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