Best car insurance in California for 2023

Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

California requires drivers to carry at least minimum levels of liability insurance coverage on their vehicles to drive legally in the state. This includes the required minimum amounts of bodily injury liability and property damage liability coverage. According to the California Department of Motor Vehicles, all California motorists must carry at least:

• $15,000 in bodily injury liability coverage per person
• $30,000 in bodily injury liability coverage per accident
• $5,000 in property damage liability per accident

California also requires that insurance companies offer you uninsured and underinsured motorist bodily injury coverage, along with uninsured motorist property damage, but you can decline in writing if you do not want to have and pay for them. Understanding California’s car insurance laws can help you understand if you need additional coverage or higher limits.

If you finance or lease your vehicle, you may need to purchase a car insurance policy that complies with your financial institution’s requirements. For example, collision and comprehensive insurance are typically optional coverage types, but if your car is financed, most lenders will require you to purchase them. This is commonly known as a “full coverage” policy.

Your financial institution may also require you to purchase higher liability limits, especially if you lease your vehicle. You might also want to consider gap insurance, which is designed to pay the difference between your vehicle’s actual cash value and the loan or lease amount if your car is totaled or stolen. According to the Insurance Information Institute (Triple-I), it is typically cheaper to purchase gap insurance from your insurer instead of from an auto dealer.

Every driver has a different set of auto insurance considerations. You might live in an area where traffic and tourism are heavy, like Los Angeles or San Francisco, have a teen driver to insure or maybe have a few accidents or moving violations on your driving record. Based on your unique needs, it could make sense to have collision coverage and comprehensive coverage, uninsured motorist coverage or towing and rental reimbursement.

Understanding your individual coverage needs might help you narrow down the companies you request quotes from. Households with teen drivers might look for companies with specialized young driver discounts, for example.

If you’re looking for the best car insurance in California, it helps to first understand what your needs and situation are. Each driver has a unique driving record and their own coverage preference and needs, which means that California's best car insurance company varies for every driver. For instance, you may have a DUI conviction or other major infraction on your record. In that case, you might consider an insurer that specializes in high-risk drivers. If you exclusively use your car for weekend trips to the grocery store, a usage-based policy may be best. By understanding what you want out of a policy, you may be able to more easily identify the best car insurance companies for you.

Based on Bankrate’s research, Geico and AAA offer some of the cheapest average rates in California. While it may be tempting to purchase minimum coverage to save on your premium, most insurance experts recommend carrying more coverage if you can afford to do so. Comparing quotes from multiple companies may help you find the cheapest car insurance for your needs.

No, California insurance carriers are not allowed to consider credit history when determining car insurance rates. The state of California is one of a handful that does not allow car insurance companies to consider your credit rating as a factor when calculating car insurance rates. What this means is that your credit score will not affect your car insurance costs in this state, whether your credit rating is poor, good or excellent. California also prohibits the use of gender in auto insurance rating. Credit history is allowed as an auto insurance rating factor in all states except California, Michigan, Hawaii and Massachusetts.

California’s Low-Cost Automobile Program (CLCA) could be a potential solution for drivers that meet its low-income requirements and want savings on car insurance. However, it’s important to understand that auto insurance policies through the CLCA are not like standard car insurance policies. One such caveat is that its coverage is below state minimum requirements. For this reason, and because of its strict eligibility requirements, CLCA isn’t intended as an option for most drivers wanting cheap car insurance in California.

Self-insurance is possible in California, but car owners must meet several requirements. As part of California’s financial responsibility requirements, self-insurance can be done by providing a cash deposit of $35,000. Alternatively, you could purchase a surety bond of $35,000 from a qualifying company.