Car insurance is more expensive in California than nearly anywhere else in the U.S.: Annual premiums for full coverage averaged $3,066 in February 2025, compared to a national average of $2,670.
In some areas, it’s much higher: Rates in Los Angeles, for example, averaged $4,158 a year, over 30% more than the state average.
It’s still possible to find reasonable and reliable coverage in the Golden State, though: CNBC Select has picked the best car insurance in California for a variety of categories. (Read our methodology for more on how we made our selections.)
Average rates from Bankrate analysis of Quadrant Information Services data.
Best for affordability: First Affordability
First Acceptance Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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Policy highlights
First Acceptance Insurance Company has been underwriting insurance policies since 1969. It specializes in coverage for high-risk motorists, young drivers and those with bad credit.
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App available
Pros
- Competitive rates for high-risk drivers
- SR-22 certificate available
- Flexible payment schedules
Cons
- Limited number of endorsements
- Not available in all states
- High volume of complaints
Who’s this for? First Acceptance is ideal if your priority is getting the best rate: It had the lowest sample premiums of any of the companies we reviewed. You can also score discounts for being a homeowner, going paperless, choosing a higher down payment or taking a defensive driving course.
Standout benefits: The supplemental hospital indemnity plan can pay for medical expenses if you’re injured in a covered accident, including your deductible and copay, nursing or ambulances. Acceptance also issues SR-22 forms to drivers who need to prove they have sufficient coverage.
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Best for discounts: Capital Insurance Group (CIG)
Capital Insurance Group Car Insurance
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Cost
The best way to estimate your costs is to request a quote
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Policy highlights
Focused on the West Coast, Capital Insurance Group offers several discounts for car insurance, including for safe drivers, good students and bundling. It has a relatively low complaint index with the National Association of Insurance Commissioners.
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App available
Pros
- Affordable rates
- A+ score from the Better Business Bureau
- Low volume of complaints
Cons
- Only available in five states
- Policies must be purchased through an agent
- Quotes not available online
Who’s this for? Capital Insurance Group (CIG) offers numerous discounts, including for returning customers, bundling, good students and advance quoting.
Standout benefits: CIG’s tenure discount rewards members the longer they stay with the company.
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Best for customer satisfaction: Wawanesa
Wawanesa Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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Policy highlights
Wawanesa is rated highly for customer satisfaction in California by J.D. Power. It offers coverage for custom parts and an optional add-on to have repairs can with parts from the original equipment manufacturer.
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App available
Pros
- Highly rated for customer satisfaction
- Coverage for custom parts available
- Optional add-on to use original manufacturer parts in repairs
Cons
- High volume of complaints
- Only available in California
Who’s this for? Wawanesa has topped J.D. Power’s auto insurance survey in California every year since 2020 and has an A+ rating from the Better Business Bureau, making it the best choice for customer service.
Standout benefits: Wawanessa offers add-ons other providers don’t, including coverage for aftermarket and custom parts following a covered loss.
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Best for seniors: Safeco
Safeco Car Insurance
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Cost
The best way to estimate your costs is to request a quote
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Policy highlights
A division of Liberty Mutual, Safeco offers accident forgiveness and a diminishing deductible, as well as a cash-back offer for customers who remain claim-free. Its safe-driving discount is worth as much as 30% off your premium.
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App available
Pros
- Safe-driving discount worth up to 30% off
- Has accident forgiveness and diminishing deductible
- Available nationwide
Cons
- Above-average volume of complaints
- Below-average customer satisfaction rating from JD Power
- Quotes not available online
Who’s this for? On top of its already affordable rates, Safeco gives a discount to drivers 55 or older who complete an approved defensive driving course.
Standout benefits: If you stay claims-free, Safeco will send you a check for up to 5% of your premium annually. You can also save up to 30% with the RightTrack safe driving app.
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Best for new cars: CONNECT
CONNECT Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
Yes (American Family’s MyAmFam app)
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Policy highlights
The Glass repair deductible waiver is standard and comprehensive plans include lost key coverage.
Costco members are eligible for a discount and perks like roadside assistance and lifetime renewability.
Pros
- Waiver of glass repair deductible included with standard policies
- Comprehensive plans include coverage to replace locks if keys are lost
- Gap insurance available
- Costco members eligible for discount and free roadside assistance
Cons
- Not available in every state
- New Costco Connect policies not available in California or Florida
Who’s this for? CONNECT‘s gap insurance benefit covers the first three years you own your vehicle and comes with new car replacement.
Standout benefits: All policies include a glass repair deductible waiver and comprehensive plans cover the cost of changing your lock if your keys are lost or stolen. CONNECT offers discounts for good drivers, returning customers and for parking in a garage overnight.
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Best for teachers: Horace Mann
Horace Mann Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
Horace Mann Insurance offers special perks to educators, including rate discounts, new car replacement coverage and no deductible for collisions or vandalism losses on or near school property.
Pros
- New car replacement coverage for teachers
- $1,000 in property coverage if educational items are stolen/damaged
- Deductible waived for collisions or vandalism claims near school property
Cons
- Most benefits are limited to educators
- personal injury protection and MedPay not offered
- Above-average volume of complaints
Who’s this for? Horace Mann offers many unique benefits for educators, including rate discounts and liability coverage if you transport students in an insured vehicle.
Standout benefits: The Educator Advantage package includes new car replacement coverage and no deductible for collisions or vandalism losses on or near school property.
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Best for rideshare drivers: Mercury Insurance
Mercury Auto Insurance
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Cost
The best way to estimate your cost is to get a personalized quote
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App available
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Policy highlights
Mercury offers affordable auto insurance and convenient online quotes and claim filing. Discounts are available for anti-theft features, bundling and for paying premiums in full.
Pros
- Affordable rates in California
- Rideshare insurance available under $1 per day
- Repairs made by an authorized garage are guaranteed
Cons
- Auto insurance only available in 11 states
- Rated below average for customer satisfaction by J.D. Power
- No gap insurance coverage
Who’s this for? Mercury is one of the few car insurance companies that offers rideshare coverage in California.
Standout benefits: Rideshare insurance can cost as little as 90 cents a day more, according to the Mercury Repairs made by an authorized garage are guaranteed for as long as you own your car.
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Best for active military and veterans: USAA
USAA Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
USAA auto insurance is available to service members, veterans and their families in all 50 states and Washington D.C.. In addition to low rates, USAA offers discounts if you are deployed or store your vehicle on base.
Pros
- Cheapest insurer for liability-only coverage
- Stellar customer satisfaction scores
- Track record of financial strength
- Available in all 50 states
Cons
- Limited to military families and veterans
- No brick-and-mortar offices
- Customer service is not available 24/7
- Safe-driver discount not available in every state
Who’s this for? USAA is a standout for active-duty service members, veterans and their families.
Standout benefits: Besides its low rates, USAA offers benefits tailored to the military community, including discounts if you’re deployed or park your vehicle on base.
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More on the top car insurance in California
First Acceptance
Capital Insurance Group
Founded: 1898
Better Business Bureau rating: N/R
A.M. Best financial strength rating: A
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Wawanesa
Founded: 1974
Better Business Bureau rating: A+
A.M. Best financial strength rating: A+
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Safeco
Founded: 1953
Better Business Bureau rating: A-
A.M. Best financial strength rating: A
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CONNECT by American Family
Founded: 1973
Better Business Bureau rating: A+
A.M. Best financial strength rating: A
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Horace Mann
Founded: 1945
Better Business Bureau rating: A+
A.M. Best financial strength rating: A
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Mercury Insurance
Mercury has a somewhat high number of complaints and lower-than-average customer satisfaction scores from J.D. Power. It received a D from the Better Business Bureau, which cited unresolved and unaddressed complaints.
Founded: 1961
Better Business Bureau rating: D
A.M. Best financial strength rating: A
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USAA
Founded: 1922
Better Business Bureau rating: A+
A.M. Best financial strength rating: A++
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Car insurance requirements in California
Minimum car insurance requirements in California include coverage for damage to other drivers and passengers, as well as their vehicles and property.
Here’s the liability coverage limit you’ll need to drive in California in 2025.
| Coverage | Amount in 2024 | Amount in 2025 |
|---|---|---|
| bodily injury (per person) | $15,000 | $30,000 |
| Bodily injury (per accident) | $30,000 | $60,000 |
| Property damage | $5,000 | $15,000 |
How to shop for car insurance in California
Whether you are looking for replacement coverage or a new policy, these steps can help find the right match.
Step 1: Get your information together
When you’re getting quotes, you’ll usually need to enter information about yourself and your car.
- Your driver’s license
- Your vehicle’s VIN (usually found at the bottom of your windshield on the driver’s side)
- Your car’s make, model, year and mileage.
If you have coverage now, keep the policy details handy — including your premiums, limits, deductibles, exclusions and discounts — to match those quotes against your current policy.
Step 2: Get at least three quotes
When choosing an insurance company to investigate, make sure they operate in your state. Look at its financial strength ratings from A.M. Best, a good sign of whether it will be able to pay out on claims.
See its scores for customer satisfaction by J.D. Power and the Better Business Bureau and if the National Association of Insurance Commissioners says it has a high volume of complaints
After you’ve decided on your candidates, review the rates and look at the coverage types and limits. Make sure you can comfortably afford the deductibles.
Step 3: buy your policy
Once you decide on the carrier and policy you want, you’ll share your payment information and choose how frequently you want to pay your premiums. Most car insurance terms last six months or one year but, for a fee, you can often pay monthly.
How to save on car insurance in California
There are several ways to lower your rates.
Shop around
Not all companies consider your driving history, age and other information the same, so getting rate quotes from several providers could help you find the best deal.
Raise your deductible
Your deductible is the amount you’ll pay if you’re involved in an accident. In most cases, the higher the deductible the lower your premium. Increasing your deductible from $200 to $500 could reduce the cost of collision and comprehensive coverage by up to 30%, according to the Insurance Information Institute.
You’ll need to have more money on hand if you’re involved in an accident, so if you don’t think you can meet the deductible — or have a spotty driving record — this isn’t the strategy for you.
Bundle your coverage
Getting your homeowners insurance from the same company you get car insurance can usually score you a discount. Bundling insurance can save you 25% or more, depending on the insurer. One of CNBC Select’s top picks for homeowners insurance in California, Mercury offers a discount of up to 15% on auto insurance and 20% on homeowners insurance when you bundle.
Drop full coverage
Comprehensive and collision coverage are normally a very good idea. But if your car isn’t worth much, the cost may outweigh the benefit. If your vehicle is worth less than 10 times your insurance premium, the Insurance Information Institute suggests dropping comprehensive and collision coverage and just keeping a liability policy.
California car insurance FAQs
How much does car insurance cost in California?
Car insurance in California averages $3,066 for a year of full coverage and $760 per year for minimum coverage. Individual rates vary based on your driving record, age, location and other factors.
Is California a no-fault state?
California is not a no-fault state. If you are found liable for an accident, you will be financially responsible for any damage or injuries.
What is the best car insurance in California?
Do car insurance companies in California check your credit?
Insurance companies in most states can use your credit score to make determinations about your approval or premiums. California is one of the few that prohibits credit-based insurance scores.
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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.
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 companies, we compared rates, focusing on cost with a sample premium. We considered coverage, ease of use, J.D. Power customer satisfaction scores, A.M. Best financial strength ratings and the National Association of Insurance Commissioners complaint index.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Sample premium data was gathered from the California Department of Insurance’s Automobile Insurance Comparison Tool, based on full coverage for a single driver who:
- Has five to seven 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 rates were averaged to create the state average annual sample premium.
From there, we sorted out picks by the best for affordability, best for discounts, best for seniors, best for new cars, best for teachers, best for rideshare drivers and best for active military members and veterans.
The premiums and policy structures cited for car insurance companies may fluctuate with company policies.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
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