How to Get the Cheapest Car Insurance in California (2021)

• California is a tort or tort state where the guilty party is liable for the other party's damages.
• The latest data on average auto insurance rates in California shows that drivers pay about $957.08 a year for policies, just below the national average.
• State minimum coverage requirements include personal injury liability of $15,000 per person and $30,000 per accident, and property damages liability of $5,000 per accident.

If you've ever tried to get somewhere in California, then you know that the easiest way is by car. With so many drivers on the roads, it's essential to find the best car insurance in California to protect yourself after an accident.

In 2018, the Local Motor Vehicle Authority (DMV) counted over 25 million registered vehicles and over 27 million issued driver's licenses. Like most states, California requires all drivers to have car insurance, and there are plenty of insurance options to choose from.

In this guide, we'll help you narrow down your options by identifying the best insurers in the state, typical California car insurance costs, the state's minimum coverage requirements, and more. If you'd like to get a free quote right away, fill out the form below to start comparing prices from multiple auto insurance providers in California.

What is mandatory car insurance in California?

When it comes to auto insurance, California requires all drivers to have a policy with at least two types of liability coverage. Generally, liability insurance helps pay for any damage to other drivers, their passengers, and their property in an accident that you are responsible for. There are two types of liability coverage:

• Liability for bodily injury (BI): covers any injury sustained by another person as a result of an accident you caused.
• Liability for property damage (PD): covers any damage to another person's property, most often their car, as a result of an accident you caused.

California's minimum auto insurance coverage requirements:

• BI: USD 15,000 per person.
• BI: $30,000 for the accident.
• PD: $5,000 for an accident.

While these are the minimum requirements for car insurance in California, it's important to note that auto liability insurance only protects the other side—it doesn't cover damage to you or your vehicle. In addition, the minimum is usually not enough to cover all expenses after an accident, and you may still need to pay a significant balance.

When it comes to automatic policies, it's best to get the maximum coverage you can afford to be completely protected. You may want to consider other types of auto insurance such as full coverage, collision insurance, or underinsured/uninsured motorist insurance along with state minimums.

DMV self insurance certificate

The alternative to car insurance in California is to prove that you can be financially responsible for any potential accident insurance.

The California DMV recognizes the following financial responsibilities:

• $35,000 cash deposit at DMV
• Self Insurance Certificate issued by DMV
• A $35,000 guarantee from a company licensed to do business in California.

These alternatives eliminate the need to pay monthly premiums and are suitable for those who cannot get standard auto insurance (for example, they have a rare car). However, they can be much more expensive. In the event of an accident exceeding $35,000, the driver must pay the balance out of pocket.

In most cases, standard California auto insurance is the easiest and most convenient way to prove financial responsibility.

What are California car insurance laws?

When it comes to car accidents, California is a state that is guilty of delinquency. A tort state requires a party to be proven to be at fault for an accident before their insurance company pays damages.

The guilty party is legally liable to pay all damages to the other party, including medical expenses, property repairs, lost wages, etc.

It is often impossible to prove that one party is at fault. In these cases, California operates as a pure comparative negligence jurisdiction, where each party will be held liable for their own fault in the accident. For example, if a court finds you guilty of a 20% accident, you will only be paid $8,000 of the $10,000 total damages.

While state tort law takes longer to reach a decision, it usually results in a fairer outcome for all parties involved.

Like most states, California has strict laws against driving under the influence of alcohol or drugs. If you are charged with a DUI, it can remain on your record for 13 years and will significantly increase the cost of your California car insurance. In addition, state distraction driving laws prohibit calling or texting while driving unless the phone is in speakerphone mode. Violation of these laws can also result in marks on your driver's records.

In California, drivers of any age are prohibited from calling or texting while driving unless the phone is on speakerphone.

How do California car insurance rates compare to other states?

When it comes to auto insurance rates, they are slightly below the US average in California. Drivers in California spent an average of $957.08 a year on auto insurance in 2017, according to the latest figures from the National Association of Insurance Commissioners (NAIC). This is slightly less than the national average of $1,004.58.

What determines car insurance rates in California?

In most states, auto insurance rates are usually based on a number of factors, from where you live to your credit score. However, it is illegal in California to base auto insurance rates based on gender, zip code, or credit history.

Instead, when calculating auto insurance premiums, providers should only consider the following:

• Driver Safety Record
• Total miles driven annually
• Years of previous driving experience
• Any other factors that can be shown to have a significant bearing on the risk of loss.

How to get the best rates in California?

While driving in some California cities can be a challenge (Los Angeles, San Francisco, and San Diego in particular), the state offers several ways to help its drivers get the lowest car insurance rates in California.

Below are three government-sponsored programs designed to reduce auto insurance costs.

California Low Cost Car Insurance Program (CLCA)

Residents who have trouble meeting California's state auto insurance minimum may be eligible for the California Low Cost Auto Insurance (CLCA) program. To be eligible for the program, you must meet the income requirements, own a car worth less than $25,000, and have a good driving history.

If you qualify, you will only need to meet the lower minimum coverage:

• BI: $10,000 per person.
• BI: $20,000 for the accident.
• PD: $3,000 for an accident.

According to the CLCA, you can expect to pay between $244 and $966 in annual premiums, depending on the county you live in.

California Automotive Risk Management Plan (CAARP)

Even high-risk drivers can get help from California programs. In cases where a driver cannot find affordable car insurance due to previous traffic violations, the California Automotive Risk Plan (CAARP) offers assistance.

CAARP assigns a high-risk driver to one of its affiliated insurance companies that agrees to charge reasonable premiums in installments. Then, in a few years, when traffic violations are removed from their records, the driver will be able to secure more affordable auto insurance rates on their own.

Discount for a good driver

California Proposition 103 was passed in November 1988 to protect consumers from any unreasonable treatment by insurance companies. This resulted in lower rates, fair insurance premiums and a significant 20% discount for a good driver.

To qualify for the 20% discount on any California auto insurance plan, a driver must meet the following requirements:

• Have had a driver's license for the past three years.
• You have not had more than one violation in the past three years (insurance companies may count any accident you have that resulted in more than $500 in damages as a violation)
• Over the past three years, fundamentally not to blame for any accident that resulted in injury or death.
• Have not been convicted of driving under the influence of alcohol or drugs within the past seven years.

Aside from California programs, it's always best to look for the best auto insurance rates from reliable providers. Most insurance companies offer discounts, for example, for students, teachers, members of the military, or members of affiliated clubs and companies.

Some providers also offer discounts on certain vehicles, low mileage drivers — an estimated savings of $81 for every 5,000 fewer miles per year, according to Consumer Federal of America — and multi-policy bundling. Look for a provider that offers at least one of these options, as well as reasonable premiums and deductibles.

Who are the best auto insurance providers in California?

Many major car companies offer auto insurance in California. If you want to find the best price, this will help you compare at least three offers from different companies. To help you get started, we've narrowed down three providers that offer great customer service, cheap auto insurance plans, and a variety of coverage options.

GEICO: Best Overall

GEICO consistently ranks among the most popular and most affordable auto insurance providers. The company receives an A++ for financial strength from AM Best, an A+ for business ethics from the Better Business Bureau, high scores in JD Power studies, and other notable ratings. According to US News & World Report, the average GEICO policy in California is $1,352.60, depending on the driver and coverage desired.

Progressive: Best option for high-risk drivers

Progressive is a popular provider of not only cheap auto insurance, but also useful online features and user-friendly apps. Clients can use the Progressive "Name Your Price" tool ^® to find a policy that fits their budget, or the Snapshot mobile app ^® for helpful tips on driver behavior. Progressive provides one of the cheapest auto insurance policies in California, with an average cost of $1,292.14 per policy.

Mercury: the best local provider

Founded in 1962, Mercury is positioned as one of California's leading independent auto insurance providers. Although it has since expanded to other states, California still accounts for 80% of the company's revenue. The provider offers all standard types of coverage, additional services such as roadside assistance, and several discounts. Mercury also claims to save drivers an average of $769 compared to other suppliers. However, it is still better for drivers to contact them directly to find out the current price.

California has many state-specific car insurance laws that affect the type of coverage and policy you must carry. To find the best California car insurance rates, fill out the free form below and start learning more about the options available.