BEST CAR INSURANCE COMPANIES IN CALIFORNIA

When you think of driving off your new wheels, you should also think of obtaining the best car insurance that conforms with the California law on insurance of auto. 

Finding the best car insurance in California depends on numerous factors which include your driving record, age, and location.

The California Department of Motor Vehicles claims that there are more than 26 million licensed drivers on the road and because California contains the highest population in the country. This makes it one of the busiest states for drivers and is second to Texas for motor vehicle deaths.

Although good and cheap auto insurance is extremely important when driving in California, yet you need to shop around before purchasing because California car insurance is not the most expensive and it is not the cheapest too.

If you are either looking for a cheap basic policy and details on the best auto insurance companies or full coverage for the whole family, the solution is found here.

Each of these providers was chosen for its excellence in cost, value, service, coverage options, and more.

Here are the best car insurance companies in California:

InsurerAverage annual full coverage premium
FarmersGeico$2,010$1,615
Progressive$1,808
State Farm$1,943
Wawanesa$1,599

These insurance companies are rated the best using the rating system and rates companies based on their:

  • Customer satisfaction
  • Customer interaction
  • Policy pricing
  • Policy offerings
  • Billing process and policy information and, 
  • Claims handling

It is okay to request quotes which can help you analyze costs, but it is also vital to consider a company’s financial strength and performance because this reflects their ability to pay your claims.

Here’s what you should know about the companies offering the best auto insurance in California.

FARMERS 

Farmers is one of the best auto insurance companies in California with a rating of 4.5/5 according to NerdWallet and it is currently one of the largest auto-insurance companies in the United States. They are not only involved in car insurance since they insure homes and other array of insurance products and other financial products such as mutual funds and annuities. Farmer’s excel in offering standard auto insurance coverage for car replacement, accident forgiveness, loss of use, customized equipment coverage, Original Equipment Manufacturer (OEM) coverage and many more. 

Farmers is one of the few insurance providers where mileage doesn’t make a big difference in the rates drivers pay. For instance, A Farmer’s average annual rate for travelling a distance of 6,000 miles and 12,000 miles are $1,624.00 and $1,635.00 respectively. Hence, rates only climb by a fractional increase of 0.7% for the driver with twice as much mileage. 

Understandably, you may be concerned about the type of auto owners that should get Farmers insurance in California. Our research into the different car insurance providers in California have shown that Farmers had higher on average rate for younger drivers than for older ones. Additionally, Farmers has one of the most outstanding customer services compared to most other car insurance companies in California. Additionally, Farmers excel better than most of their car insurance competitors in California in terms of claims handling and insurance issues resolution.

Types of Coverage from Farmers Car Insurance

Farmers offer a wide variety of auto insurance packages that range from the very basic packages such as liability and spare parts payments to the very comprehensive ones such as collision, personal injury insurance and lots more. Some of the insurance packages offered by Farmers includes:

  • Comprehensive
  • Collision
  • Liability
  • Uninsured and underinsured motorist
  • Medical payments coverage
  • Personal injury protection
  • Towing and roadside assistance
  • Spare parts coverage
  • Windshield and safety glass coverage
  • Rideshare
  • Recreational
  • Umbrella

Farmers also offer car insurance discounts. Some of their most best discount policies includes;

  • Bundling
  • Multi-policy
  • Affinity
  • Paperless billing
  • Good payer
  • Safe driver
  • Distant student
  • Youthful driver
  • Good student
  • Mature driver/defensive driver/senior driver (name varies by state)
  • Homeowner
  • Alternative fuel (California only)
  • Discounts for having equipment like anti-lock brakes or anti-theft devices
  • Signal tracking device: Can save you up to 15% if you’re a safe driver, but you have to agree to let Farmers track your driving habits via your smartphone

Another insurance car insurance company in California is GEICO.

GEICO

Geico, the second largest insurance company in the U.S, controls 13.8% of the market and insures nearly 27 million cars. It is a nationwide insurance provider, and as such is able to offer really competitive rates. 

The company’s biggest claim is that prices for Geico car insurance are among the lowest available. It does this partly with a wide range of discounts that you can take advantage of when you buy your policy.

Cost of Geico Insurance

The average cost of minimum coverage in the United States currently is $563 a year while the average cost is $1,738 for full coverage.

Below are the average amounts Geico customers pay:

Geico average annual premium for minimum coverageGeico average annual premium for full coverage
$363$1,325

Drivers who choose Geico can save up to an average of $200 for minimum coverage and $413 for full coverage.

However, Geico covers all other insurance policy and you could save more if you use them for your other insurance needs because they give customers who choose them for other insurance products big savings.

Discounts

Some discounts you can enjoy in Geico are;

  • Discounts for new vehicle 
  • Discounts for good student 
  • Defensive driving discount
  • Discounts for good driver 
  • Discounts for use of seat belt 
  • Multi-vehicle discount
  • Discounts for Multi-policy 
  • Vehicle equipment discounts
  • Discounts for driver education 
  • Military and public service discounts
  • 50years and above discount

Why is Geico a great option?

Geico is a great option if you’re looking for one of the best auto insurances because the rates it charges are mostly lower than what other companies charge, and you can also save a lot of money by discounts and bundling.

It also receives top marks from companies like J.D. Power and AM Best Year after year. These are the things you need to look at when considering an insurance company in California. If a company scores well with both J.D. Power and A.M. Best, then you know that you have found a solid insurance provider.

The plus to this insurance company is that it has a mobile app called ‘Geico’s mobile app’. It allows you to manage everything that concerns your policy including updating or changing your policy, making a payment or filing a claim.

Another one of the best car insurance company in California is;

PROGRESSIVE

Progressive offer some of the cheapest car insurance rates in California and also offers terrific coverage options. 

This makes it easier for customers to request an online insurance quote, file a claim and price shop using the Progressive website or mobile app.

You can boost your car insurance coverage with alternatives for personal injury protection (PIP)gap insurance and rental car insurance. Progressive offers rideshare coverage if you drive for Uber too.

Progressive has also receive an A+ (Superior) rating for financial stability therefore, you can count on quick and reliable claims processing.

However, you should keep in mind that your rate varies based on many factors, including your zip code, driving history, coverage selection and the number of vehicles on your policy.

Types of coverage in Progressive policy

Progressive offers various car insurance policies and discounts and it is easier to request quotes online. some Progressive car insurance coverages include:

Bodily injury and property damage liability: The state laws require motorists to carry minimum amounts of liability coverage.

Your liability coverage will pay the medical expenses or repair costs of the other driver if you are at fault in an accident. State laws require motorists to carry minimum amounts of liability coverage.

Comprehensive: Here, the state laws do not require drivers to carry comprehensive insurance, but if you finance a vehicle, the lender might need it. Comprehensive car insurance policy protects non-collision damages or losses. Like; if your car got stolen or damaged in a storm, your comprehensive insurance will pay to repair or replace it.

Collision: The states do not need you to purchase collision insurance just like comprehensive coverage, but lenders need it for financed vehicles. Collision insurance pays to repair or replace your car after a collision.

Progressive also offers alternative coverage that provides additional protection for drivers who need them. Some of this coverage is:

Custom parts and equipment value: Car owners always add custom equipment such as stereo or navigation systems that standard car insurance does not cover. 

However, with custom parts and equipment value coverage, Progressive will pay up to $5,000 to repair or replace customizations following an insured accident.

  • Lease/loan payoff: Progressive’s lease/loan payoff coverage helps to fill the gap between what the insurance company pays and the amount you might still owe on the lease or loan.
  • Rental car reimbursement: Progressive’s rental car reimbursement coverage will help you pay off the cost of renting a car if your car needs repairs after an insured accident.
  • Rideshare: Progressive’s rideshare insurance fills in the gap and extend your personal car insurance coverage to cover you and your vehicle when you are logged in to your ridesharing app, but not transporting a passenger.
  • Roadside assistance: When you have a flat tire, need a tow or lock yourself out of your automobile, Progressive’s roadside assistance can come to the rescue.
  • Cost of Progressive car insurance
  • The average annual car insurance premium for full coverage in Progressive insurance is $1,738. The price increases or decreases depending on your location, the type of car and the insurance provider. 
  • Progressive does not claim to have the cheapest rates in the insurance market, but it still provides lower than the average cost.
Progressive average annual premium for minimum coverageProgressive average annual premium for full coverage
$493$1,419

Meanwhile, Progressive also has various programs and discounts to help you lower your premium without sacrificing your coverage.

It offers several ways for you to reduce your car insurance premium using the following discounts:

  • Automatic Prompt payment
  • Continuous insurance
  • Distant student
  • Good student
  • Homeowner
  • Multi-car
  • Multi-policy
  • Online quote
  • Paperless documents
  • Pay-in-full
  • Sign online
  • Teen driver

Reasons why Progressive is a great option

Progressive car insurance is a great choice for you because its Snapshot program monitors your driving habits and offers fantastic discounts for good drivers. 

The Progressive website also includes a “Name your Price” tool that matches the coverages available with the price you are willing to pay for auto insurance.

You might have heard of this next best car insurance company in California;

STATE FARM

State Farm provides a variety of insurance offerings including car insurance and has agents across the state that are ready to help you create the best California car insurance policy. They are ready to answer every one of your questions and to make sure that you have the right amount of coverage.

State Farm car insurance discounts are:

  • Steer Clear discount (applicable for drivers under 25 years old)
  • Defensive driving course discount
  • Good student discount
  • Multi auto discount
  • Vehicle safety discount

Another big part of State Farm is that they also offer a special Drive Safe and Save discount that rewards safe drivers. Therefore, you can save money when you connect to OnStar or use their mobile app to track your driving. And if you are a good driver, you can receive up to 30% off your insurance policy.

If you are a younger driver, you can also take advantage of their Steer Clear program which helps drivers fewer than 25 years learn good driving habits and save money in the process. You can get up to a 15% discount on car insurance after you have completed the program.

Cost of State Farm auto insurance

State Farm Average Annual Premium for Minimum CoverageState Farm Average Annual Premium for Full Coverage
$472$1,422

State Farm car insurance is very affordable for most drivers as the average full coverage policy costs $1,422 per year while the average minimum coverage policy costs $472 per year. 

However, you should know that these are simply average rates and Car insurance quotes and premium will be based on factors like your location, your ZIP code, your age, credit score and claims history.

Reasons why State Farm is a great option

According to the 2020 J.D. Power U.S. Auto Claims Satisfaction Study, State Farm earned a score of 881 out of 1,000.

It also holds an A++ financial rating from AM Best. However, the National Association of Insurance Commissioners reports higher than average customer complaints.

And according to State Farm reviews from Consumer Affairs, many policyholders loves how easy it is to file a claim online or from their phone. Others loves its convenience to talk to their local agent. Customers love State Farm’s discounts for safe drivers, including teen drivers.

The last of the best four car insurance company you should consider in California is;

WAWANESA

Wawanesa car insurance in California gets lots of customer approval because of its prices on car insurance. This is one of the reasons it is ranked as the best auto insurance companies in California.

It stands out for other reasons, like it fully functioning mobile app, and its strong web presence, unlike other insurance companies. 

Some other auto insurance providers post as little as possible online except for Wawanesa and this makes it one of the most transparent insurance providers you can find.

Wawanesa is also one of the most coverage insurer providers out there to protect your car.

Some of their coverage is; 

  • Rental reimbursement
  • Bodily injury liability
  • Collision
  • Comprehensive
  • Automobile medical payments
  • Roadside assistance
  • Uninsured/underinsured motorist
  • Property damage liability
  • Vehicle manufacturer replacement parts coverage

The vehicle manufacturer replacements part coverage ensures that only factory parts are used in repairs.

Discounts

Some of the discounts insurance services Wawanesa provides are;

  • Loyalty discount for policies of one year or more
  • Good driver discount
  • Multi-car discount
  • Driver improvement course discounts for drivers ages 55 and older

Reasons why Wawanesa is a good option for insurance

Wawanesa is an excellent option for the budget-conscious insured and because of the company’s claim, new customers can save between 25 and 30 percent on their insurance. It is best to bundle car insurance coverage for maximum savings. 

The procedure for insurance is reasonable fast. You can also purchase insurance straight from the Wawanesa website without having to deal with brokers or third-party insurance agents.

Average car insurance cost in California

The average annual cost of car insurance in California for full coverage is $2,065 and $733 for minimum coverage. You should expect to pay a little bit more than the national average of $1,738 annually for full coverage.

Average annual premium for minimum coverage in CaliforniaAverage annual premium for full coverage in California
$733$2,065

State minimum insurance requirements in California

California requires minimum liability insurance on all cars. The minimum coverage says that;

  • All cars must have liability insurance.
  • Liabilities policies must provide for at least $15,000 for the injury or death of one person and $30,000 for the injury or death of multiple people.
  • Policies also must cover at least $5,000 worth of property damage.

California does not require drivers to carry comprehensive or collision insurance. But if you finance a car, some banks will need you to purchase standard coverage with a specific deductible. 

Therefore, if you lend the car, it is advisable to meet with your lender to see which requirements they have taken.

How to get the best car insurance

To get a good deal from the best insurance companies in California, you should;

  • Put a value on your needs: The Department of Insurance offers a comparison tool to assist you in finding the most affordable car insurance in California. Premiums and rates are different from one another among companies according to your record of driving, the numbers of time you drive, your location, the number of years you have had a license, and the make and model of your vehicle.
  • Think of state factors: California has the highest population in the country, and a large number of those motorists are uninsured as over 15 percent of California drivers do not have insurance currently. And because the cost of living is so high, many drivers are not able to pay for more than minimum liability. With drivers opting for so little coverage, companies have no choice but to raise premiums to retain profitability.

Car insurance discounts in California

Many car insurance companies offer some extra discounts you can use to save money on your car insurance. Some of these discounts for the four best insurance companies in California are listed in the table below. 

DiscountGeicoProgressiveState FarmWawanesa
Anti-lock brakesX
Anti-theft devicesXX
Automatic payment/paperless billing
Defensive driving courseXX
Early signing
Full payment
Good studentXXX
Green vehicle
LoyaltyX
Low annual mileageXX
MilitaryX
Multiple policiesXXXX
Multiple vehiclesXXXX
Occupational or organizationsX
Safe driver/accident freeXXXX
Safety featuresXX

The average cost of car insurance in California

The average cost of car insurance in California is a bit higher than the national average. California state minimum liability coverage has an average cost of $611, while full coverage costs an average of $1,974. 

Your own cost of insurance may vary because several different factors are unique to everyone. The crime rate in your area, your age, and your driving history are just a few factors that may affect and determine how much you pay for car insurance. 

Conclusively, securing a car insurance policy in California is important and you can make use of the best four insurance companies listed above to give you maximum cover against all forms of causalities.

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