Several states in the USA demand that their drivers have car insurance for their vehicles before they can hit the road. California is not an exception to this. Home to over 14 million people, the state of California demands that drivers have minimum car insurance of $15,000 per person before they are permitted to drive legally.
There are several insurance companies in California, and finding the best one that can suit your needs is not an easy task. However, you will be glad to know that there are multiple insurers who offer a wide variety of additional coverage for an affordable amount.
To save you the trouble, I have taken the time to draft a list of some of the best car insurance companies in California. Spare a minute to read through this blog post to learn more about this insurer and the cost of car insurance in California.
The Best Car Insurance Companies in California
Finding the best car insurance company is not easy. However, I have drafted a list of some of the best insurers in California, and a few among them offer an insurance premium at an affordable price.
Geico is one of the few insurance companies that have the cheapest insurance rate in the country. One of the reasons why their premium is so low is because of the exclusive discount that it offers. Although Progressive provides a larger discount to its policyholders, Geico still provides a generous discount. This insurance company also has several coverage options, such as ride-hailing and mechanical breakdown coverage.
Allstate isn’t among the insurers that offer a cheap auto insurance rate in California, but it still offers great customer service and claims satisfaction. It also provides comprehensive coverage policy options. Furthermore, it also provides accident forgiveness and the typical list of options provided by most car insurance companies.
Progressive sits at the top of the list of some of the best car insurance companies in California. Some auto insurance companies offer lower premiums for a specific type of driver. Progressive steadily offers a competitive insurance rate irrespective of the driver’s age, driving history, and whether the driver is under the influence.
This insurance company also has excellent customer service and provides a near-flawless system for getting an auto insurance quote online. Policyholders can also file a claim through its mobile app.
Esurance has become very competitive in its car insurance premiums and now offers low statewide average premiums in California. If you are searching for the lowest car insurance in California, you might want to try out Esurance. It also provides a simple online application process with quick approval.
Although Esurance doesn’t have much coverage like other insurance companies, it still provides one of the cheapest auto insurance rates. One of the major perks that Esurance offers is a Switch and Save account discount. With Esurance, policyholders can save $462 per year on their auto insurance premiums.
How Much is Car Insurance in California?
The average cost of auto insurance in California is $2,190 per year for full coverage and $619 for minimum coverage. This is a little higher than the national average insurance rate, which is $1,771 annually.
Drivers in California pay higher insurance rates than the national average and more than the premium in most states; this is due to the state’s denser traffic, heavily congested roadways and higher accident claims. Here is a table to show how much car insurance costs at several insurance companies:
|Insurance company||Average Rate|
|Alliance United Insurance||$2,324|
Minimum Auto Insurance Requirements in California
According to California’s state law, drivers are expected to have a minimum liability limit of $15,000 per person and $30,000 per accident for bodily injury and property damage liability coverage. Although this is the lowest amount of auto insurance coverage that you can have, it is advisable to choose your coverage limits depending on your driving habits and financial situation.
For instance, you can add comprehensive and collision coverage to your car insurance if your vehicle is worth more than a few thousand bucks.
How to Find the Best Car Insurance in California
Finding the best car insurance company can be a little difficult because you have to find the insurer that will provide the coverage that suits your needs. There are also other factors that you must consider when searching for an insurer. These will help you find the best insurer to offer you the best options.
Consider Minimum Insurance Requirements in California
Drivers in California are required to carry a minimum level of liability insurance coverage on their cars before they are allowed to drive legally. This includes the required amounts of property damage liability coverage and bodily injury liability coverage, which are $15,000 in bodily injury liability coverage, $30,000 in bodily injury liability coverage per accident, and $5,000 in property damage liability per accident.
In California, it is also required that the insurance company provide uninsured and underinsured motorist bodily injury coverage along with uninsured motorist property damage. Having a better understanding of California state insurance laws can help you know if you need extra coverage or a higher limit.
Consider Lender Requirement
If you lease your vehicle, you might need to get an auto insurance policy that complies with your financial institution’s requirements. Comprehensive and collision insurance, for example, are typically optional types of coverage. However, if your car is financed, the lenders will require that you buy them.
This is typically known as a “full coverage” policy. If you lease your vehicle, the financial institution may require that you get a higher liability limit. You can also consider gap insurance, which is designed to pay the difference between the actual value of your car and the lease amount if your car is stolen or totaled.
Consider Your Individual needs
Every driver has a unique set of auto insurance considerations. Depending on your unique needs, it would be the right decision to have comprehensive collision coverage, uninsured motorist coverage, and rental reimbursement. Knowing your individual coverage needs can help you narrow down the insurance companies and get a quote from them.
How Much is California Car Insurance?
The average cost of auto insurance in California for full coverage is around $2,190 per year, which is 24% more than the national average. However, every auto insurance company has its own method for calculating the insurance rates, and the rates are also based on your rating factors.
What Is the Cheapest Car Insurance Company in California?
Geico and Esurance have some of the cheapest minimum coverage policies in California when compared to other insurance companies. Although the minimum coverage of auto insurance may provide the cheapest car insurance cost on average, several insurance professionals suggest that drivers get a higher limit and more coverage than the required minimum for increased financial protection.
Is Car Insurance Expensive in California?
The cost of auto insurance in California is above the national average when compared to other states. In the United States, California ranks as the second most expensive state for auto insurance.