Car insurance is more expensive in California than nearly anywhere else in the U.S.: Annual premiums for full coverage in the Golden State averaged $2,599 in September 2024, according to Bankrate data, compared to a national average of $2,348.
In some urban areas, it's much higher: The average premium in Los Angeles, for example, is $3,539.
But it's still possible to find reasonable and reliable coverage in the state. CNBC Select has chosen the best car insurance in California in a variety of categories.
Best car insurance in California
- Best for affordability: First Acceptance
- Best for discounts: Capital Insurance Group
- Best for customer satisfaction: Wawanesa
- Best for seniors: Safeco
- Best for new cars: CONNECT by American Family
- Best for teachers: Horace Mann
- Best for rideshare drivers: Mercury Insurance
- Best for active military and veterans: USAA
Shop for the right car insurance
Best for affordability: First Affordability
First Acceptance Auto Insurance
Cost
The best way to estimate your costs is to request a quote
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.
App available
Yes
Pros
- Competitive rates for high-risk drivers
- SR-22 certificate available
- Flexible payment schedules
Cons
- Limited number of endorsem*nts
- Not available in all states
- High volume of complaints
Who's this for? First Acceptance isideal if your priority is getting the best rate. It had the lowest sample premiums of any of the companies we reviewed.
Standout benefits: First Acceptance is a budget-friendly option for drivers with speeding tickets and in other high-risk categories. It also offers flexible payment schedules.
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Best for discounts: CIG
Capital Insurance Group Car Insurance
Cost
The best way to estimate your costs is to request a quote
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.
App available
Yes
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, good students and for advance quoting.
Standout benefits: CIG's multi-policy discount rewards customers who bundle auto and home insurance.
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Best for customer satisfaction: Wawanesa
Wawanesa Auto Insurance
Cost
The best way to estimate your costs is to request a quote
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.
App available
No
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 JD Power's auto insurance survey for the California region every year since 2020 and has an A+ rating from the Better Business Bureau, making it the best choice if customer service is your priority.
Standout benefits: Wawanessa offers add-ons other providers don't, including coverage for aftermarket and custom parts. You can also have your car repaired with parts from the original manufacturer rather than aftermarket parts following a covered loss.
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Best for seniors: Safeco
Safeco Car Insurance
Cost
The best way to estimate your costs is to request a quote
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.
App available
Yes
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? Safeco has affordable rates and a discount available to drivers 55 and older who complete a defensive driving course.
Standout benefits: If you stay claims-free, Safeco will send you a check for up to 5% of your premium every year. 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
Cost
The best way to estimate your costs is to request a quote
App available
Yes (American Family's MyAmFam app)
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 insurance.
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
Cost
The best way to estimate your costs is to request a quote
App available
Yes
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
Cost
The best way to estimate your cost is to get a personalized quote
App available
Yes
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
Cost
The best way to estimate your costs is to request a quote
App available
Yes
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.
Terms apply.
Read our USAA auto insurance review
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
First Acceptance issues nonstandard car insurance for high-risk motorists, which includes drivers with accidents, speeding tickets and DUIs, as well as new drivers and those with bad credit.
It also offers other types of protection, includinglife insurance,travel insurance andpet insurance.
Founded: 1969 Better Business Bureau rating:
A.M. Best financial strength rating: C++
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Capital Insurance Group
Capital Insurance Group was incorporated in 1898 but is now a subsidiary of Auto-Owners Insurance, one of the largest multi-line property and casualty insurance companies in the U.S. CIG offers car, home and renters insurance in Arizona, California, Nevada, Oregon and Washington.
Founded: 1898 Better Business Bureau rating: N/R
A.M. Best financial strength rating: A
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Wawanesa
Wawanesa was established as a farmers' mutual insurance carrier in 1896 in Manitoba, Canada. It entered the U.S. Market in 1974 and, in 2024, it became a subsidiary of the Auto Club of Southern California (AAA). Wawanesa only offers auto insurance in California.
Founded: 1974
Better Business Bureau rating: A+
A.M. Best financial strength rating: A+
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Safeco
Safeco (the Selective Auto and Fire Insurance Company of America) was founded as a subsidiary of the General Insurance Company of America in 1953. It is now a division of Liberty Mutual, offering policies for autos, motorcycles, boats, RVs and off-road vehicles.
Founded: 1953
Better Business Bureau rating: A-
A.M. Best financial strength rating: A
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CONNECT by American Family
Backed by American Family Insurance, CONNECT provides a simple online experience at an affordable price point. CONNECT has half the number of complaints of other auto insurance providers and J.D. Power gave it the second-highest score for customer satisfaction in California.
Costco CONNECT, which is sold through the warehouse club and comes with added discounts and benefits, is not available in California.
Founded: 1973
Better Business Bureau rating: A+
A.M. Best financial strength rating: A
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Horace Mann
Anyone can buy Horace Mann auto insurance but the company offers many perks for teachers — like no deductible for collisions with another vehicle insured by Horace Mann and $1,000 in property coverage if educational items are stolen/damaged while in your car. With rental car reimbursem*nt coverage, you'll receive up to $35 for transportation if you can't safely drive.
Horace Mann doesn't offer personal injury protection or medical paymentcoverage.
Founded: 1945
Better Business Bureau rating: A+
A.M. Best financial strength rating: A
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Mercury Insurance
L.A.-based Mercury issues automobile and home insurance in Arizona, California, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia, as well as automobile insurance in Florida. I
Mercury has a somewhat high number of complaints andlower-than-average customer satisfaction scores from JD 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
USAA policies are only available to current and retired U.S. service members and their immediate families. In addition to auto insurance, it provides homeowners, renters, life and pet insurance, as well as mortgage loans and other financial products. While J.D. Power gave USAA high scores for both claims and customer satisfaction, it has a much higher volume of complaints than its competitors, according to the NAIC.
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.
The minimum requirements in California for private passenger vehicles are set to increase on Jan. 1, 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 |
For a policy that covers you and your vehicle, you'll need full coverage car insurance, which includes comprehensive and collision coverage. If you are leasing or financing your car, you're probably required to have full coverage.
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.
Get your information together
if you're getting quotes, you'll usually need to enter some information about yourself and your car. Have on hand:
- Your driver’s license
- Your vehicle’s VIN (usually found at the bottom of your windshield on the driver’s side)
- The 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.
Get at least three quotes
When choosing an insurance company to investigate, make sure they operate in your state. Several large insurers have pulled out of California or scaled back operations.
Look at its financial strength ratings fromAM Best, a good sign of whether it will be able to pay out on claims.
See its scored for customer satisfaction byJ.D. Power and the Better Business Bureau and if the National Association of Insurance Commissioners says it has a high volume of complaints
Compare quotes
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.
That way you'll be able to decide on the policy that fitsyour lifestyle and budget.
FAQs
How much does car insurance cost in California?
Car insurance in California averages $2,599 a year for full coverage and $641 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?
The best car insurance company depends on your needs and budget. We found that First Acceptance, Capital Insurance Group, Safeco, Wawanesa, CONNECT, Horace Mann, Mercury and USAA are standouts in California for affordability, coverage and customer service. Comparing quotes from these insurers will help you find a policy that works for you.
Do car insurance companies in California check your credit?
Car insurance companies in California are prohibited from using your credit history to determine your rates.
Read more
Best homeowners insurance in California
The best car insurance for high-risk drivers
8 factors that affect your car insurance premiums
The best homeowners insurance companies
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.
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.
