5 Best Car Insurance Companies in California for 2022
There are nearly 40 million people who call California home, making it the most populated state in the nation. All those cars on the road creates a unique landscape for competition among insurers, and finding the best car insurance in California is no easy feat.
However, we’ve poured through the data and created a list of insurance companies that are best for the majority of drivers at different stages in their lives. We found that Progressive stands out as best overall for its relatively cheap rates and quick claims experience.
As always, the best way to find the right car insurance for you is to obtain multiple quotes and compare terms side by side. The comparison tool below saves you time by searching for top-rated insurance companies in your area.
The Best Car Insurance Companies in California
- Best for Affordability: Esurance
- Best for Discounts and Second-Lowest Premiums: GEICO
- Best All-Around Car Insurance Company in California: Progressive
- Best for Coverage Options: Allstate
- Best Online Marketplace: The Zebra
Compare Auto Insurance Companies in California
Best for Affordability: Esurance
Esurance has become much more competitive in pricing its auto insurance premiums — so much so that it now offers the lowest statewide average premiums in California. If you’re looking for the lowest-cost car insurance in California, Esurance should be your first stop.
Esurance is a subsidiary of Allstate, but it offers an all-online application process that emphasizes rapid approval. It doesn’t have as many coverage options or discounts as other providers on this list, but when you’re already the lowest-cost provider, those aren’t quite as important.
On the cost side, one major benefit it offers is a Switch & Save discount. The company claims the average consumer saves $462 per year on their car insurance premium with Esurance — just for transferring coverage from another carrier.
Customer Satisfaction Rating: 825 (No. 6 on the the J.D. Power California Survey)
Financial Strength Rating: A+ (superior, through parent company Allstate)
Statewide Average Premium in California: $1,164 (lowest in California)
Coverage Options:
- Emergency roadside coverage
- Rental car coverage
- Loan/lease gap coverage
- Medical payments
- Personal injury protection
Discounts:
- Switch & Save ($462 average savings)
- DriveSense driver monitoring app
- Bundle with renter’s insurance
Best for Discounts and Second-Lowest Premiums: GEICO
GEICO not only has the second-lowest car insurance premiums in California, but it also ranks fifth in customer and claims satisfaction — one notch higher than Esurance.
But a large part of the reason why its premiums are so low is because the company offers deep discounts. Although Progressive offers more discounts, GEICO’s discounts are more generous. The company also has plenty of coverage options, including ride-hailing and mechanical breakdown coverage.
Customer and Claims Satisfaction: 828 (No. 5 on the J.D. Power California Survey)
Financial Strength Rating: A+ (superior)
Statewide Average Premium in California: $1,432 (second lowest after Esurance)
Coverage Options:
- Roadside assistance coverage
- Ride-sharing
- Mechanical breakdown
- Collector vehicles
- Medical coverage
- Personal injury protection
Discounts:
- Multivehicle (25%)
- Bundling
- New vehicle (15%)
- Vehicle safety and anti-theft equipment (up to 23%)
- Good driver (accident-free for at least five years — up to 22%)
- Good student (15%)
- Driver’s education
- Federal employees (12%)
- Members of the U.S. military (15%)
- Membership in — or employee of — hundreds of groups and employers
- Customer loyalty
Best All-Around Car Insurance Company in California: Progressive
Although there are many high-quality car insurance companies in California, Progressive Insurance earns the top spot on this list. While some car insurance companies offered less expensive premiums for certain types of drivers, Progressive consistently offered competitive rates whether drivers were young, old or had a history of accidents or driving under the influence.
Progressive also has exceptional customer service and offers a near flawless system of getting car insurance quotes online. Filing a claim is straightforward, and the app gets five stars from us.
It’s clear Progressive has invested in technology to help streamline the car insurance process. What was once a cumbersome and dreaded task becomes much easier using Progressive’s online tools.
As always, drivers should get quotes from at least five different car insurance companies before choosing one, but Progressive should be on that list. Also, keep in mind that you could actually get your premiums lowered over time by enrolling in the Progressive Snapshot program.
Customer and Claims Satisfaction: 823 (No. 7 on the J.D. Power California Survey)
Financial Strength Rating: A+ (superior)
Statewide Average Premium in California: $1,568
Coverage Options:
- Gap coverage (loan/lease payoff if you owe more than the car is worth)
- Rental car reimbursement (typically $40 to $60 per day)
- Custom parts and equipment value
- Ride-hailing coverage
- Roadside assistance
Discounts:
- Name Your Price Tool (enter your desired premium and Progressive will design a policy)
- Snapshot app ($145 average discount)
- Bundle auto and property (12% average discount)
- Multi-policy (5% average discount)
- Multicar (12% average discount)
- Small accident forgiveness (your premium won’t be raised on a claim of less than $500)
- Large accident forgiveness (no premium increase in an accident if you have been a customer for a least five years with no accidents for the past three years)
- Continuous coverage (discount varies)
- Teen driver (18 or younger)
- Good student (discount varies)
- Distant students (more than 100 miles from home — discount varies)
- Homeowner (average discount nearly 10%)
- Online quote (7% average discount)
- Sign online (9% average discount)
- Paperless (discount varies)
- Pay in full (discount varies)
- Automatic payment (discount varies)
Best for Coverage Options: Allstate
Allstate doesn’t have the lowest car insurance premiums in California, and it sits middle of the pack as far as customer and claims satisfaction. But being a large, well-established insurance provider, Allstate offers comprehensive policy coverage options.
Not only does it offer accident forgiveness and the usual list of options offered by most car insurance companies, but it also offers specialized options.
These include coverage for classic cars, car insurance for travel to Mexico and ride-hailing coverage.
Customer and Claims Satisfaction: 819 (No. 8 on the J.D. Power California Survey)
Financial Strength Rating: A+ (superior)
Statewide Average Premium in California: $1,694
Coverage Options:
- Accident forgiveness
- Sound system insurance
- Roadside coverage
- Personal injury protection
- Personal umbrella (covers liability in excess of standard auto policies)
- Rental reimbursement
- Classic cars
- Car insurance for travel to Mexico
- Ride-hailing coverage
Discounts:
- New car
- Multi-policy
- Smart student
- Vehicle safety equipment
- Early signing
- Responsible payer
- Smart Student (minimum GPA 2.7)
- EZ pay plan
- Paperless (Allstate ePolicy)
- Pay by automatic withdrawal and/or full payment
- Drivewise monitoring app
- Deductible Rewards ($100 reduction in your deductible for each year you’re accident free, up to $500)
Best Online Marketplace: The Zebra
Sometimes it’s nice to compare car insurance companies side by side, especially when you get similar quotes. The Zebra is an online marketplace that helps you see the differences between car insurance companies.
It provides real-time quotes and has lots of educational materials to help you better understand all the terminology and financial lingo that comes with the car insurance buying process.
How We Chose the Best Car Insurance Options in California
There are numerous factors that we considered when rating the best car insurance companies in California. When the cost of living is so high in a state like California, it’s always important to research insurance companies that offer competitive pricing.
Some of the research and tools we used that helped create this list include:
- We used California data from the Insurance Information Institute to determine which car insurance company offered the lowest premiums overall to California drivers (not just to good drivers or to drivers with prior incidents).
- We incorporated research from J.D. Power’s 2020 U.S. Auto Insurance Study, which contains a category just for the state of California.
- We used review sites, including ConsumersAdvocate.org, which allowed us to test different driver profiles. Factors tested included age, credit rating, homeowner status, accident history and history of DUI.
- We looked at programs, perks and offerings from dozens of different insurance providers, searching for companies that cater to a variety of drivers.
What You Need to Know About California Coverages
All drivers are legally required to carry car insurance in the state of California.
What Are California’s Car Insurance Minimums?
Here are California’s minimum auto insurance requirements. Keep in mind that it’s prudent to carry insurance above and beyond the minimum to protect yourself against liability as well as uninsured or underinsured drivers on the road.
- $15,000 bodily injury liability per person
- $30,000 bodily injury liability per accident
- $5,000 property damage liability per accident
What If I Can’t Afford Insurance in California?
If you meet the following criteria, you could be eligible for lower-cost auto insurance in California:
- Your annual income is 250% or less of the federal poverty level
- Your car is worth less than $25,000
- You have a valid California driver’s license
- You’re at least 16 years old
- You have a good driving record
MyLowCostAuto.com, a website sponsored by the California Department of Insurance, offers additional resources and in-depth information regarding affordable coverage.
What If You’re a High-Risk Driver in California?
If you have a poor driving record that includes accidents, tickets or DUIs, it might prove difficult to get car insurance. If that’s the case, contact the California Automobile Assigned Risk Plan.
It can help assign you to an insurance company, and you might be eligible for installment payments, which could make your insurance premiums easier to afford. Call 800-622-0954 for assistance.
What Are California’s Laws Regarding Non-Insurance?
If you drive a car in California without insurance, the DMV in California states you could:
- Be cited
- Have your vehicle impounded
Final Thoughts
Buying car insurance is a financial decision and will likely be one of the larger expenses in your annual budget. For that reason, carefully consider several different quotes from at least five different car insurance companies in California before deciding which one is best for you.
Keep in mind that most car insurance premiums rise after the first year, so before committing to one company, ask them if they predict your premiums rising in the future. Also, take the time to research any and all discounts you might be eligible for.
While it might seem like one company offers lower prices than another, you might also be eligible for certain discounts not offered by every insurance company. Learn about which companies cater to your particular driving history so that you find the best car insurance company in California for your needs.
