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Getting car insurance in California will be different than getting car insurance anywhere else in the US. California’s unique laws on auto insurance make a big difference, and the Golden State also offers a unique affordable car insurance program that isn’t available elsewhere.

According to data from S&P Global, the average premium paid in the state of California is $1,397. That said, you’ll still want to shop around to find the best coverage. Here’s what you need to know about getting car insurance in California, and a few companies that offer some of the lowest estimated premiums to get you started on your search.  

How do companies determine your premium in California?

Companies in California determine your premium, or the cost you’ll pay up front for coverage, a little differently than in other states. California law prohibits considering age, gender or credit score in insurance pricing. 

Other than those things, the standard pricing factors still apply. Years of driving experience, driving record, the type of car you drive, and where you live within the state will all be factors taken under consideration. An additional factor is previous insurance coverage.

The best cheap car insurance in California

Because California car insurance providers cannot use your credit score as a factor to determine your premium, where you live will be a big factor. Californians who live in more rural parts of the state will pay less, and those in urban areas will generally pay more. 

California is a large market for car insurance, and that means that there’s a big opportunity to shop around. Make sure to get quotes from several different insurance companies, and compare their coverage limits and types. You’ll also want to consider the deductible, or the amount you’ll pay out of pocket if you get into an accident. By shopping around, you’ll be able to find the best rate for you.

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The most popular car insurance companies in California

The following are the most popular car insurance companies in California, in order of companies that insure the most California drivers to the least:

Market Share (%)

State Farm


Farmers Insurance

Auto Club Exchange (AAA)


California State Automobile Association

Mercury Insurance




Liberty Mutual


Wawanesa General Insurance Co.

National General Holdings Corp

American Family Insurance

The best car insurance companies in California based on customer satisfaction

Customer satisfaction with car insurance providers may factor into your decision. According to a J.D. Power survey, these are the top 10 providers based on customer rankings: 

Auto Club of Southern California Insurance Group 
State Farm
The Hartford
California Average

Sample car insurance quotes in California 

In California, coverage costs will vary most by where you live. To find the companies with the cheapest policies, we used California Department of Insurance’s Automobile Insurance Comparison tool to find the best companies for drivers in three different parts of California. 

We based our analysis on standard coverage for a single adult driver, who drives no more than 10,000 miles per year, has five to eight years of driving experience, and owns a Honda Accord.

Driver with no violations

Here are the three best companies for …read more

Source:: Business Insider


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