Insurance

The Cheapest Car Insurance in California for 2022 |

· Cheapest Full Coverage Car Insurance in California. The average price of Esurance is $6 cheaper per month than Progressive, but both will be 
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Progressive has the cheapest average rate for MoneyGeek’s sample driver. For actual premium prices, insurers consider different factors such as coverage amounts, driving history and age.

For instance, Esurance is the cheapest company for a full coverage policy, senior drivers and those with at-fault accidents. On the other hand, the most affordable for young drivers is Allstate. If you are an active-duty military, veteran or from a military family, USAA is among your cheapest options.

For those looking for an even more local solution, we also broke down the cheapest companies by city, as well as the best car insurance companies in California for those looking to balance quality service and cost.

To find out how MoneyGeek calculated the cheapest car insurance in California, read our methodology.

The cheapest car insurance in California is a liability-only coverage policy, which is a package that only meets the state’s minimum car insurance requirements. California’s minimum liability requirement is 15/30/5, which covers up to $15,000 for bodily injuries or death of one person, $30,000 for bodily injuries or death per accident and $5,000 for property damage.

The most affordable liability-only insurance companies in California are:

  • Progressive: $481 per year
  • CSAA: $505 per year

USAA is another affordable option in California for car insurance at $483 on average per year. However, the insurance is only available to current and former military members and their families. Farmers, at an average of $850 annually, is the most costly option in California.

Cheapest Minimum Car Insurance in California

These prices are only estimates based on rates for an average California driver and should not be used to compare insurance prices.

The average price of Esurance is $6 cheaper per month than Progressive, but both will be good options for those looking for affordable full coverage rates. By contrast, Allied insurance costs about $1,762 per year and is the most expensive in California.

Cheapest Full Coverage Car Insurance in California

Rates are for a policy with comprehensive and collision insurance with $100,000 in bodily injury liability coverage per person, $300,000 in bodily injury liability coverage per accident and $100,000 in property damage coverage per accident.

You can easily get a car insurance quote online from most companies, making the process of shopping for auto coverage far more convenient than it used to be.

  • Start by determining how much coverage you need so you can compare insurers with consistent limits. For instance, if you get a quote with one provider for $100,000 in bodily injury liability insurance per accident, you should make sure to use the same number when comparing prices with another insurer.
  • If you want to get a quote estimate for the average driver, use MoneyGeek’s car insurance calculator. For personalized quotes, you’ll have to provide more details.
  • For the state’s minimum liability-only car insurance package, Progressive, USAA and CSAA offer the most reasonably priced plans, on average.

Mercury is the most affordable option at $2,377 per year. By contrast, MetLife costs an average of $8,285 per year — that’s a whopping difference of $5,908 between the cheapest and most expensive insurance providers.

Average Car Insurance Rates With a DUI

Having a DUI on your record can increase your insurance rates because driving under the influence of alcohol can endanger yourself and others on the road. Drivers in California with a DUI might need to file an SR-22. According to data from the Centers for Disease Control and Prevention (CDC), there were 9,288 car crash deaths involving a drunk driver in California from 2009-2018. In the same study, 1.5% of respondents in California reported driving after drinking too much within the previous 30 days.

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Driving under the influence can impact your finances for years to come. Costs associated with a DUI include legal fees, court fees, alcohol education programs and increased auto insurance premiums. Shopping around and comparing car insurance quotes could help you find lower rates after getting a DUI. Improving your driving record in the years to come will keep you safe and lower your insurance costs.

Car insurance companies evaluate car insurance costs based partly on your driving record. The costs of a DUI can amount to roughly $40,000 in increased auto insurance rates over a period of 13 years. Although you’ll likely pay higher rates for years to come, striving for an improved driving record and shopping around for car insurance could help you lower your rates over time.

Drivers with at-fault accidents typically pay more than those with a clean driving history. The cost of auto insurance for a high-risk driver with at-fault accidents is $2,431 annually on average.

Based on MoneyGeek’s analysis, the two cheapest car insurance for California drivers with at-fault tickets are from:

  • Esurance: $1,654 per year
  • CSAA: $1,704 per year

For military families with at-fault accidents, USAA is one of the cheapest options. It has an average rate of $2,045 per year.

Cheapest Car Insurance With an At-Fault Accident

The average car insurance rate for drivers with a speeding ticket in California is $2,057 per year, $628 more than an average driver with a clean record would pay for similar coverage.

On average, the cheapest car insurance companies in California for a driver with a speeding ticket are:

  • Esurance: $1,337 per year
  • CSAA: $1,704 per year

For military members and their families, USAA is the most affordable option in California at an average cost of $1,280 per year. The most expensive car insurance in California is Travelers at $2,572 on average per year.

Average Car Insurance Rates With a Ticket

Having a speeding or distracted driving ticket on your record can impact your car insurance rates. According to the National Highway Traffic Safety Administration (NHTSA), there were 3,259 auto accidents as a result of distracted driving in California in 2018. California state laws prohibit all hand-held device use while driving, so distracted driving can not only result in the cost of a ticket, but it can also lead to higher insurance costs.

Your auto insurance rate is likely to go up if you get a ticket for speeding or for distracted driving. According to the Insurance Information Association, your driving record is taken into account when you secure your auto policy, so being riskier to insure means paying higher premiums. Your insurer can also re-evaluate your rate if you get a moving violation (i.e., a speeding ticket).

In California, car insurance companies cannot use your credit score to determine your premiums. However, as a good credit score can have many financial benefits, it’s still advisable to improve your score if possible.

While insurers in many states use credit scores to determine premium costs, California is an exception. Insurers in California cannot use a driver’s credit score to influence the cost of car insurance. Your credit score can impact your finances in other ways, however, so improving your score can help prepare for the future.

Senior drivers in California can benefit most from Esurance, whose policies cost an annual average of $1,183. That’s $655 less than Travelers, the most expensive auto insurance provider for seniors in the state.

Cheapest Car Insurance Rates for Seniors

In California, there are more than 5.5 million drivers older than 55 — and more than 2.5 million of them are 70 or older. Car insurance rates for seniors tend to increase with age. When shopping for car insurance, seniors in California can look for discounts based on their needs and experience. There are discounts for completing driver safety courses, for infrequent drivers and for owners of cars with advanced safety features that seniors can consider when it comes to choosing auto insurance.

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California requires drivers age 70 and older to renew their licenses in person every five years and take both vision and written tests. The state accepts requests from family members and others for the DMV to conduct unsafe driver investigations. Finally, the state requires doctors who diagnose patients with Alzheimer’s disease or other conditions that may make them unsafe drivers to report the diagnosis.

Young and new drivers in California usually have higher premium rates than other adult drivers. That is because insurance providers see them as high-risk drivers. For a 16-year-old, the average cost of insurance in the state is $4,234 per year. A 25-year-old pays an average of $1,755 per year.

Based on average rates, Allstate is most commonly the cheapest company for drivers between the age of 16-25.

Annual Car Insurance In California for Young Drivers

It’s generally cheaper for parents to add their young driver to their policy rather than have a separate policy, and there may be additional cost-cutting options available such as good student discounts and enrolling a teen driver in a safe-driving program. Additionally, if a young driver is heading off to college and is commuting long distances, increasing coverage may be a good idea. Always notify the insurance company if your car will be used in another state for more than 30 days.

USAA ranks as the second most affordable auto insurance provider in California, next to Progressive. Although Progressive may offer slightly cheaper rates, USAA is known to exclusively serve active-duty military members, veterans and their families, offering benefits that cater to these groups.

Any car driven or parked on California roadways must be insured, according to the California Department of Motor Vehicles (DMV). Even your 1967 Camaro that sits in the garage will need insurance if you ever want to take it for a spin.

If you drive your car infrequently, you may qualify for a low-mileage discount or pay-as-you-drive insurance.

Proof of Insurance in California

All California drivers must carry evidence of financial responsibility in their vehicles at all times or proof of an alternative (see below). Your insurance company should provide you with an insurance card containing information about your policy and the car(s) covered. You can carry this on paper or a mobile device, and you must present it when requested by law enforcement or when renewing vehicle registration.

Minimum Liability Insurance Requirements in California

Drivers must have minimum liability insurance, which covers costs related to injuries or damage you might cause in a car accident. The minimum level of coverage in California is:

  • $15,000 for injury/death to one person
  • $30,000 for injury/death per accident
  • $5,000 for damage to property

However, this is merely the minimum coverage level required by the state. Insurance experts often recommend carrying 10 times this amount of coverage.

Low-Cost Auto Insurance Program in California

If you cannot afford liability insurance, you may be eligible for the California Low-Cost Automobile Insurance Program.

Alternatives to Insurance in California

Most drivers purchase auto insurance to cover their financial liability, but the DMV offers a few alternatives:

  • A cash deposit of $35,000 with the DMV
  • A DMV-issued self-insurance certificate (which requires even larger reserves)
  • A surety bond for $35,000 from a company licensed to do business in California

These alternatives require significant cash reserves, and one accident can wipe out the entire reserve. That’s why most people stick with insurance.

How Much Coverage Do You Need in California?

California law only requires that you have liability insurance. However, cheap car insurance isn’t always the best car insurance. According to the Insurance Information Institute, insurance experts and consumer advocates recommend carrying liability coverage of $100,000 per person and $300,000 per accident. Some experts recommend carrying uninsured motorist insurance as well.

Read more: Compare Car Insurance Quotes Online (2022 Rates) – Forbes Advisor

If you have a new car loan, the insurer will require that you purchase collision and comprehensive insurance. You may also want to carry it if you’ve purchased a relatively new car for cash. On the other hand, if your car is worth less than your deductible and a couple of years’ worth of premiums, you might want to forgo that coverage.

Additional collision coverage beyond the state-required minimum will protect you if you are at fault in an accident. Comprehensive coverage helps repair or pay for the replacement value of a vehicle following a crash.

Drivers commonly have questions about car insurance in California, especially relating to costs. Here are the answers to some of these queries to help you find the best coverage for your needs.

California auto insurance rates are derived from MoneyGeek’s analysis of data and information from the California Department of Insurance and Quadrant Information Services.

Drivers and Cars in California

Unless otherwise noted, MoneyGeek gathered data using the following sample profile of a California driver:

  • 40-year-old male
  • Clean driving record
  • 2010 Toyota Camry LE
  • 12K miles driven annually

MoneyGeek also collected data for drivers with varying circumstances — such as different violations (speeding ticket, at-fault accident and DUI), credit histories and ages — to find the cheapest companies for each type of driver.

For the cheapest minimum-liability policy, MoneyGeek followed California’s minimum car insurance requirements.

Coverage Levels in California

MoneyGeek also evaluated the cheapest companies for two types of policies: a policy following California’s minimum auto insurance requirements and a full coverage policy with higher liability limits.

California’s minimum insurance requires 15/30/5 liability coverage, or:

  • $15,000 for bodily injury per person
  • $30,000 for bodily injury per accident
  • $5,000 for property damage per accident

Full coverage policy limits include:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $100,000 property damage liability
  • Comprehensive and collision coverage with a $1,000 deductible

Data Depth

To find the most affordable auto insurance providers in California, MoneyGeek analyzed 17,888 quotes from 14 companies across 86 ZIP codes.

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