8 Best Car Insurance Companies in California of 2023

There are more licensed drivers in California than in any other state, with more than 26 million people on the road.

Whether you’re driving on the freeway or driving in the suburbs of Bel-Air, you are more likely to have an accident.

That’s one of the main reasons why CA residents should buy auto insurance.

But to do so, you not only have to search for what car insurance coverage you want but also what you’re required to buy.

And that means you need to figure out state law requirements for you to drive legally.

So how do you find the best car insurance in California that fits your needs and is relatively cheap?

We did the research for you. We’ve given you a list of the best car insurance companies in California that may help you find the one you want. We also broke down coverages to inform you about everything related to auto insurance.

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GEICO: Best Car Insurance for Mechanical Breakdown

GEICO’s auto insurance is a favorite policy due to its low rates, unique coverage, and many discounts it offers.

Besides its standard policy, GEICO also covers roadside assistance, rental car reimbursement, and mechanical breakdown.

Roadside Assistance

This pays for the cost of towing, jump-starts, flat tires, and lockout services.

Rental Car Reimbursement

This pays for a rental car if you can’t drive your car for more than 24 hours after a covered accident.

Mechanical Breakdown

This is a unique coverage that pays for mechanical breakdown insurance.

If your car is less than 15 months old and has a mileage of fewer than 15,000, this coverage will pay for repairs, above all for new parts, to cover your new car.

However, GEICO does not provide new car replacement or better car replacement coverage that other leading insurance companies typically offer.

Also, GEICO will not cover you for maintenance issues such as tune-ups.

GEICO Auto Insurance Multi-Policy Discount

Automatically get 3% off when you bundle GEICO auto insurance with GEICO homeowners insurance.

Read a full GEICO car insurance review.

Liberty Mutual: Best Car Insurance for Teachers

Liberty Mutual has wide coverage, meaning customers can customize their policies to fit their needs.

It’s also known for its Teachers’ Auto Insurance coverage, which is unique to Liberty.

With no extra charge for this coverage, the Teachers’ insurance includes the following:

Vandalism Loss Protection

There’s no deductible if your car is vandalized during school-related events or on school property.

Personal Property Coverage

You can get reimbursed up to $2,500 per incident if your teaching materials or school-owned property are stolen or damaged while in your car.

Collision Coverage

There’s also no deductible if your car is damaged in an accident while driving it for school-based or school-related businesses.

Read a full Liberty Mutual car insurance review.

Progressive: Best Car Insurance for Rideshare Coverage

Rideshare coverage protects you and your car if you drive for a ridesharing service like Uber and Lyft.

Ridesharing companies are usually required by law to provide coverage for their drivers. But it’s incomplete.

Progressive has the most attractive rideshare insurance.

Standard insurance offered for rideshare drivers only covers the period between accepting a ride and dropping off a customer.

This add-on insurance expands your auto policy by offering coverage gaps, so you’re covered even between rides.

Read a full Progressive car insurance review.

Travelers: Best Car Insurance for Coverage

Travelers is known for its car insurance coverage options that are essential for any driver.

Your options to include in your auto coverage are:

• Two levels of 24/7 roadside assistance.
• If you have a covered accident, you can get a rental car.
• Also, if your car is totaled within the first five years, you can get a rental car replacement while you are shopping for a new car.
• Gap coverage covers what you owe on a loan or lease after your car is totaled.
• Minor violation forgiveness.

Allstate: Best Car Insurance for Optional Features

With its massive reach, wide range of products, and many local agents, Allstate is a great no-hassle choice for consumers who want additional features.

In addition to Allstate’s basic policy, the behemoth insurer also has some coverage features that any driver may want.

These features come at a cost and may not be available in every state.

Here are the features:

Safe driving Bonus

For every six months of accident-free driving with Allstate, you can receive your money back.

Deductible Rewards

For each year you keep your driving record clean, you can get $100 off your collision deductible, up to $500 off.

New Car Replacement

If you total a new car within the first two model years, you can get a check to buy a brand-new car without depreciation.

Roadside Assistance

Roadside has two options: pay-per-use or as an add-on to your insurance.

Rideshare Insurance

An add-on for drivers who use ride-sharing services such as Uber and Lyft.

Custom Equipment Coverage

If you’ve added aftermarket parts or certain equipment, such as a new radio/CD/speakers, to your car, your auto insurer will pay to replace any new parts and systems if they’re stolen or damaged.

Amica Mutual: Best Car Insurance with the Most Discounts

Amica is one of the oldest auto insurers in the United States, owned entirely by its policyholders.

It is known primarily for its excellent customer service ratings and few complaints.

It’s also known for several discounts that the company currently offers.

State Farm: Best Car Insurance for the Cheapest Rates

State Farm is the largest auto insurance company in the market.

It’s also the cheapest overall because the insurance has more customers than any other insurer.

Its large market share allows State Farm to keep its prices competitive.

A minimum coverage plan from State Farm costs an average of $80 per month.

A full coverage plan costs $220.

To show you how affordable State Farm is, the average cost of car insurance in California is $1,430 per year or $120 per month.

As you can see, State Farm beat the California average.

Your State Farm policy also allows you to access discounts that you qualify for and which can bring down your already affordable premium rate.

Farmers: Best Car Insurance for Online Presence and Mobile App

Farmers is now popular for its website or app since its electronic presence was retooled. These days the company has added a variety of online tools to make its website and mobile app more useful and robust.

As a result, customers can access features like online price quotes, rate calculators through Farmers’ online calculator tool, bill pay, claims filing on the insurer’s website, connecting with an agent, and requesting roadside assistance, to name a few.

The most useful tool is that customers can file claims through their online account as well as report and track claims.

In addition, Farmers offers you helpful resources to assist with your claim online or through the mobile app. You’ll even find a checklist of what to do after you have a car accident.

Is Auto Insurance Mandatory in California?

In California, all drivers must have auto insurance if they want to take their car out for a spin or if they just need to get to work.

And besides, if you lease or finance your car, your lender may require you to have car insurance.

Many think they may never get caught by authorities and so they skip auto insurance. But if you do, you will pay dearly, and you may have to surrender your driver’s license.

What Makes Up Auto Insurance?

There are two main components of an auto insurance policy: liability and physical damage coverage.

Your own liability pays for any bodily injury and property damage that you cause or for which you are responsible.

Regardless of fault, it can also include medical payments for you or anyone in your car if you and others are injured.

What Auto Insurance Coverage Do I Need in California?

California’s minimum car insurance requirements include:

Bodily Injury Liability Coverage

$15,000 per person / $30,000 per accident minimum. 

This pays for the other party’s medical expenses if you have an accident and you’re at fault.

Property Damage Liability Coverage

$5,000 minimum. 

This coverage is used to repair the other party’s car if you are at fault.

Uninsured Motorist

$15,000 per person / $30,000 per accident minimum.

Uninsured Motorist (UMC) refunds you when another driver is at fault in an accident and has either no auto insurance coverage or does not have enough insurance to cover you.

California law requires auto insurers to offer UMC and underinsured motorist UIM coverage. Such coverages are not mandatory in California.

California law also requires car insurance companies to offer you $3,500 in uninsured motorist property damage (UMPD) coverage, but you can reject it.

When You Need More Coverage

The above minimum limits aren’t enough to cover expensive medical treatments or extensive damage to another car.

It’s a good idea then to purchase higher limits to protect you, your car, other passengers, as well as other drivers.

If you experience car accident injuries that need medical attention or extensive car damage and your policy limits are exhausted, you must pay the remaining costs out-of-pocket.

What Does My Liability Policy Cover?

If you get into an accident and it was your fault, your auto liability policy will pay for any medical expenses, property damages, and other losses (lost wages, for instance) to the other driver.

Optional Coverage

While the coverages above are required by law, the following forms of car insurance are optional but may be necessary to have on your auto policy:

Comprehensive

Comprehensive pays for things that happen to your car, such as vandalism, theft, or damage from a natural disaster.

Collision

Collision pays to repair your car or replace it when it’s damaged in a car accident.

Also, if your car collides with something else that is moving, such as another car, another person, a deer, or a dog, collision will pay for damage to your car.

Comprehensive and collision insurance are usually optional and are not required in the state of California. They are usually sold together in California.

But if your car is financed, the lender may require both comprehensive and collision.

This practice is also known as a “full coverage” policy.

When your dealership or bank wants you to carry full coverage, this means they are asking you if you can add comprehensive and collision coverage to your auto policy.

Comprehensive pays for car damage that is outside the driver’s scope.

These include:

• Theft
• Vandalism
• Fire
• Hail
• Windstorm
• Flood
• Falling objects, such as rocks.

Collision and comprehensive coverage hinges on the value of your car.

If your car is old, beat up, or used, it’s not worth getting covered,

But if your car is new or expensive or rare, then it’s worth getting the coverage.

It’s important to note that California lenders usually require coverage when you finance or lease a car.

Uninsured/Underinsured Motorist

If a driver hits you and doesn’t have enough coverage or no coverage at all, this coverage pays for car repairs and your personal medical bills.

This also covers you if you are in an accident with a driver who does not have any liability insurance or is underinsured.

Uninsured Motorist Bodily Injury (UMBI)

If you and your passengers get injured in an accident and the other driver is at fault and is uninsured, this pays for any sustained injuries.

Underinsured Motorist (UIM)

This covers limited costs for bodily injury as a result of you getting into an accident with a driver who does not have enough insurance to pay for damages.

Uninsured Motorist Property Damage (UMPD)

If you get into an accident with an uninsured driver who is at fault, this pays for any damage to your car.

Medical payments (MedPay)

If you are the driver and have passengers in your car and you get into an accident regardless of who is at fault, your auto insurer will pay for necessary medical bills either to you or to your passengers.

Accident Forgiveness

Accident Forgiveness is not available in California according to state law. The 1988 law made it illegal for insurance companies to offer accident forgiveness because insurers used to charge “excessive rates.”

What is a “Fault?”

California is "fault.”

Liability for a car accident in California is a “fault” system, which means that drivers are financially responsible for any accidents or damages they may cause.

California is not a no-fault insurance state.

Thus. California drivers aren’t required by law to have personal injury protection coverage (PIP).

PIP covers the medical injury costs to a driver and their passengers after an accident.

Are There Any Endorsements or Riders to Take Advantage of?

You can purchase extra coverage as add-ons to your policy.

Examples include:

When expensive details in your car—from speakers to navigation systems—are stolen or damaged.

Towing and road service.

After your car is damaged due to an accident and is not drivable, you’ll get a rental car reimbursement.

Guaranteed Auto Protection (GAP) when you pay off an auto loan or lease if your car is totaled and the market value of your car is less than the balance owed.

What Does Car Insurance Not Cover?

• Any contents or personal effects inside your car (Example: If your car was robbed. You need to turn to your renters or homeowners insurance to have your belongings covered.)
• Any damage you caused intentionally.
• Normal wear and tear.
• Mechanical failure unrelated to a covered event.

What Factors Determine the Cost of Car insurance in California?

Many factors affect your premium rate. The most important ones include:

Credit Score

If you have a poor credit score, insurers will believe that you are more likely to skip payments or not pay at all and you are also more likely to file claims. So, your premium will be higher.

Driving History

If you have a bad driving record, insurers will likely charge you more because insurers believe that your current driving history will be reflected in the future.

Age

Young people and teenagers are more at risk because online sources show that young people drive more recklessly and get into many accidents.

How Much Does Car Insurance Cost in California?

The cost of your auto policy varies depending on different factors, including the ones above.

An auto insurer will look at where you live, the type of car you drive, and more to give you a quote.

That said, the average cost of full coverage insurance in California is around $1,400 per year or around $117 per month.

How Do I Get the Cheapest Rate?

Get as many auto insurance quotes as you can. Now compare all the quotes before you purchase a policy. You’ll likely find a quote that is within your budget.

A quote is an estimate of your premium cost.

How We Picked and Ranked the Best Car Insurance Companies in California

We researched auto insurers to find the best companies by category, using such factors as discounts, coverage, technology, and price.

Discounts

We looked at companies with the most discounts so you can save on your policy.

Coverage

Coverage is key when talking about auto insurance. It gives you more opportunities to choose from. And some seem necessary, and yet you must pay extra for them. We found many coverages that can be very useful to you.

Technology

We considered whether an insurer had a website and mobile app that could provide you with convenience and help you save time.

If you could easily get a quote, file a claim, keep track of your claim, check up on your policy, and more on the website and app of an insurer, then we put them high on our list.

Customer Reviews

Customer reviews are raw and pointed. They are also true (we only looked at vetted reviews), with customers putting up reviews any time they want. Customer reviews are necessary to read so you don’t make the mistake of purchasing a policy that ends up not being the one you really want.

Price

There are many auto insurers out there, so the cost of a policy helped us minimize our list when we chose only the most affordable.