Like all insurance, finding the best coverage for your particular need in your specific state can be challenging. There are several top ranked car insurance providers across the United States with top names including GEICO, State Farm, and Amica. However these top names may not necessarily be available or offer the best quote in each particular state and in California specifically. Thus, finding the right one for your driving needs in California can be daunting.
Also like all types of insurance there are several considerations that are important for the buyer and will influence their monthly rate. Usually the best way to shop for any kind of insurance on your own is to use an online aggregator to compare plans in your state for the best available coverage. There are several online auto insurance aggregators for auto insurance including:
Before taking the first step to look for auto insurance, it is important to know the coverage requirements. In California and most states these requirements can be found on the website of the Department of Motor Vehicles. California, like most states, only requires liability coverage for vehicle registration. If you lease or finance a vehicle the dealership will likely require that you have full coverage. Keep in mind rates on all car insurance policies can vary by your location within the state.
Below is a look at some of the top companies and considerations for auto insurance in California.
Good drivers: Good drivers have the luxury of getting the best quotes from any auto insurer. Auto insurance from any company is primarily based on your individual characteristics and driving record. If you have no tickets or accidents, you can expect to pay the lowest rate. Esurance is reportedly one of the lowest cost providers in California for good drivers, with a full coverage monthly quote of $100. Some insurance companies also offer discounts for drivers who have attended driving school, which can also lower your rate.
Largest in California: If you are looking to go with the largest auto insurance provider in California you have four top options. AAA, State Farm, Allstate, and Farmers are the state’s four largest. Average annual rates for low risk drivers from these companies will range from $988 to $1,388.
Cheapest: USAA is reportedly the cheapest auto insurer in California. Zebra.com ranks it the lowest for annual premiums at an average of $1,132.
Best in California for minimum coverage: Minimum coverage includes liability only, which pays for the coverage of others harmed if you are in an accident. USAA tops this list again as the cheapest provider in the state with a low monthly rate of approximately $40.
Young adults: Car insurance for a young adult will be the highest of all. Annual premiums average $7,175 per year. This rate drops off significantly when moving into the 20s and then further in the 30s. Liberty Mutual is reportedly one of the best for young adults across the U.S. and this goes for California as well.
Best for drivers with an at-fault accident: Many auto insurers across the United States offer accident forgiveness, which is a provision that limits your rate from increasing in the case of one accident. California has outlawed accident forgiveness for auto insurance, so residents of the state will have a hard time getting a break if they have been in any type of at-fault accident.
Low-mileage drivers: Entering your expected mileage for an insurance policy can be an important caveat, especially if you are a low-mileage driver. Low-mileage drivers can expect to pay less because they have less risk. Metromile is one of the newest car insurers on the market and they allow drivers to pay per mile they drive, which can be especially beneficial for low-mileage drivers. Other auto insurers known for their low-mileage discounts include Progressive, Allstate, State Farm, Esurance, Nationwide, and Liberty Mutual.
The Bottom Line
Car insurance is highly personalized based on the individual characteristics of your car and your own unique attributes. Overall, shopping for car insurance in any state can be overwhelming. Most companies have six-month policies, which allow consumers to hop from one insurer to another relatively often. The companies in this article are some of the top providers for consumers looking for the best car insurance in different categories. Like all insurance needs, consumers also have the option to work with an independent insurance company that can help to do the comparison work for them.