Cheapest Auto Insurance in California 2025: A Comprehensive Guide

California car insurance rates are some of the highest in the US, but it's still possible to get affordable coverage. If you've recently moved to CA and you're looking for rates, or if you've just started driving, we'll help you explore the cheapest auto insurance in California.

Compare top insurers like Geico, Wawanesa, Progressive, and State Farm to find the best deals and get car insurance quotes from ThinkSaveRetire. We'll also walk you through the latest information on how different factors like your location, driving record, and type of vehicle can influence insurance rates.

Cheapest Auto Insurance, California - At a Glance

• Mercury - A great choice for younger drivers.
• Geico - Offers full and minimum coverage at fantastic rates.
• Progressive - Great for drivers seeking to lower rates through good driving habits.

Understanding the Factors Influencing Car Insurance Rates in California

There are many different factors that impact auto insurance rates in California. They are as follows:

1. Driving Record: Your driving history will determine your insurance premiums. A clean driving record typically results in lower rates, as you're seen as less of a risk to insure. However, traffic violations, accidents, or DUIs will mean you end up paying more.
2. Location: Where you live in California will affect your insurance rates. City areas like Los Angeles, San Francisco, San Jose, and San Diego generally have higher rates. This is down to factors such as more traffic, an increased likelihood of accidents, and even higher crime rates, including vehicle theft.
3. Age and Gender: Young drivers, especially teenagers, usually face higher car insurance costs because of their lack of driving experience and the risk of road accidents. In addition to that, male drivers often have higher rates than female drivers, especially in younger age groups, because they’re statistically involved in more accidents.
4. Type of Vehicle: The make and model of your car can determine your insurance premiums. For example, it often costs more to insure high-end vehicles, such as luxury and sports cars. This is due to an increased theft risk and higher repair costs.
5. Coverage Level: You can choose from full to minimum coverage. Minimum coverage is naturally cheaper, but full coverage will provide more comprehensive protection, covering damages to your own vehicle as well as others'. You can also purchase additional coverage options.
6. Good Credit Score: It is illegal under California's law to use credit scores to determine car insurance rates. Other factors, such as your driving history and vehicle usage, will be considered more heavily when it comes to coverage.
7. Annual Mileage: Higher mileage increases the risk of accidents, leading to higher rates. Some insurers even offer discounts for drivers with low mileage.
8. Deductibles: Choosing higher deductibles can lower your premiums. However, this means you will pay more out-of-pocket in the event of a claim.

Cheapest Car Insurance Providers in California

Based on comprehensive data analysis from multiple sources, the following companies consistently offer some of the most affordable car insurance in California:

1. Geico

• Minimum Coverage:  Most drivers favor Geico for its minimum liability coverage due to its competitive rates, starting around $36 per month or $430 annually.
• Full Coverage: If you're in need of more extensive protection, Geico also provides full coverage options averaging around $2,212 annually. The company offers various discounts for good drivers, military members, federal employees, and more.

2. Wawanesa General

• Affordable Rates: Wawanesa General is known for offering the lowest average annual premiums, especially for drivers with clean records, with rates starting at approximately $1,214 per year.
• High-Risk Drivers: The company also offers competitive rates for drivers considered high-risk, including those with past traffic violations or accidents.

3. Progressive

• Diverse Coverage Options: Progressive offers various coverage options, with full coverage rates starting at $1,843 annually. They have a Snapshot program that rewards safe driving with potential discounts. This is what makes them a popular choice for drivers seeking to lower their premiums by building good driving habits.
• Discounts: Progressive offers a range of discounts, including multi-policy, multi-car, and safe driver discounts.

4. Mercury Insurance

• High-Risk Coverage: Mercury Insurance is a great choice for drivers with prior incidents such as DUIs, speeding tickets, or moving violations. They have full coverage policies that start at approximately $1,910 annually.
• Young Drivers: Mercury provides affordable options for young drivers, with comprehensive coverage rates beginning at $3,873 per year for teenagers.

5. State Farm

• Comprehensive Coverage: Although this provider is not always the cheapest option, State Farm offers complete coverage and a wide range of discounts. Their rates for full coverage average $2,492 annually.
• Customer Service: State Farm is known for excellent customer service and support, which makes it a trustworthy choice for drivers who need dependable coverage.

Comparison of the Cheapest Car Insurance, CA

Best Rates for Different Driver Profiles

Cheapest Car Insurance, California - By Age

Your age will impact your driving insurance rates in California. The younger you are, the more you'll pay. For example, if you're a teen or a young adult, you'll pay more for auto coverage than someone in their 40s. Once you reach the age of 30, your rates for coverage will begin to decrease.

However, for those in their 70s or above, car insurance costs will increase once more.

Here is the cheapest car insurance in California based on age:

Driving Laws for Teens in California

According to state law, like all drivers, teenagers must be insured to drive legally. They need to have the minimum liability insurance, which as of 2025 requires:

• $30,000 bodily injury per person
• $60,000 bodily injury per accident
• $15,000 property damage liability

However, parents or guardians will commonly add teens to their own insurance policy, which is less expensive than purchasing their own separate policy.

Here are other considerations to keep in mind:

Provisional Permits:

• Teen drivers need a provisional permit, which they can get by completing the DMV-administered driving test.
• Teens must be at least 15½ years of age to obtain a provisional permit.
• During the first 12 months of their provisional permit, they can drive between 5:01 am and 10:59 pm.
• During the first 12 months of their provisional permit, they can only drive with passengers over the age of 21.

Full Driving License:

• If they wish to apply for a full license, teens must have had a provisional permit for at least six months.
• They must be at least 16 years of age.

Additional Factors to Consider With Cheap Car Insurance, California

California's Minimum Insurance Requirements

As of 2025, drivers must carry at least the following minimum coverage to drive legally in California:

• Bodily Injury Liability Coverage: $30,000 per person and $60,000 per accident
• Property Damage Liability Coverage: $15,000 per accident

These coverage rates are always changing, which is why it's important to stay updated. This will ensure you always have adequate coverage.

California's Unique Risks

Rates of car insurance coverage in California depend on its geographical and demographic characteristics. The state has a propensity for natural disasters, such as earthquakes and wildfires. Therefore, it's important to get comprehensive coverage, which covers damage caused by these natural events. It will give you financial protection and peace of mind.

Low-Income Assistance

California offers a Low-Cost Auto Insurance Program for eligible drivers, providing affordable liability coverage. This program is ideal for those who may find standard premiums unaffordable but still need to meet the state's minimum insurance requirements. Eligibility is based on:

• Having a valid California driver’s license
• Being at least 16 years old
• Household size and income
• Vehicle value ($25,000 or less)
• Having a good driving record or being a new driver
• Using the vehicle for personal purposes

Additional and Optional Coverages, CA

Although all California car insurance companies provide basic liability insurance by law, there are still more coverage options available. Some drivers may need to purchase additional coverage depending on their circumstances. For example, if you use your motor vehicle for business or lease your car, you may be required to have collision coverage. Additionally, some drivers may simply wish to purchase additional coverages beyond the basic packages for peace of mind. These include:

1. Comprehensive Coverage - This covers all non-collision incidents, such as fire or flooding, theft, vandalism, and more. You'll need this coverage if you lease your vehicle.
2. Rental Reimbursement - This will pay for a rental car if your vehicle is being repaired due to an incident. This is usually for incidents that your insurance already covers, so make sure to check.
3. Collision Coverage - This pays for repair (or even replacement) if your car has been damaged in a collision. If you lease a car, you'll be required to have this coverage.
4. Roadside Assistance - This is for when you need emergency assistance, and usually provides battery jump-starts, fuel, tire changes, and more.
5. Medical Payments (Med Pay) - This covers any injury and medical expenses, even after an at-fault accident.
6. Uninsured Motorist - If you get into an accident with an at-fault driver who hasn't taken out insurance, this covers your expenses.

Tips for Lowering Your Car Insurance Premiums

You don't want to pay higher costs if you don't have to. Here are some ways to ensure you're getting the lowest rates possible:

1. Shop Around: Comparing quotes from multiple insurance companies is one of the most effective ways to find the cheapest car insurance in California. Each company has a formula for calculating rates, so you may find significant price differences for similar coverage.
2. Bundle Policies: Many insurers offer discounts if you bundle multiple policies, such as auto insurance and home insurance. This can save you money and ensure you're covered for everything.
3. Increase Deductibles: Choose a higher deductible to reduce your premium costs. However, if you go down this route, make sure you have enough savings to cover the deductible amount in case of an accident.
4. Keep Your Driving Record Clean: A history of safe driving can lead to lower premiums and even help you qualify for good driver discounts. This means having a record free from accidents and traffic violations.
5. Consider Usage-Based Insurance: Programs like Progressive’s Snapshot and State Farm’s Drive Safe & Save offer discounts based on your driving habits. These programs use telematics to monitor your driving and reward you with lower rates if you drive safely.
6. Take Advantage of Discounts: You can get discounts for a range of factors, such as being a good student, having safety features in your car, or belonging to certain organizations.
7. Drive a Safer, Lower-Cost Vehicle: The type of car you drive will affect your insurance rates. If you choose a vehicle with a high safety rating and low theft rate, this can help lower your premiums.

Frequently Asked Questions:

What factors influence car insurance rates in California?

A range of factors may influence car insurance rates in California. These can include:

• Your location (you may pay less for rural areas and more for cities like San Francisco, where crime rates and volume of traffic are higher)
• Your record
• The type of vehicle you drive
• Your age and gender
• Your annual mileage
• Your coverage level

Which providers offer the cheapest rates in California?

California car insurance costs aren't cheap. However, Geico, Wawanesa General, Progressive, Mercury Insurance, and State Farm all offer more affordable options. If you need low rates on minimum coverage, choose Geico, whereas Wawanesa General is popular for offering low premiums to drivers with clean records.

How can I lower my car insurance premiums in California?

If you wish to lower your car insurance premiums in California, consider:

• Shopping around for quotes
• Bundling policies
• Increasing your deductibles
• Maintaining a clean record
• Using available discounts

In addition to these, usage-based insurance programs and choosing a safer, lower-cost vehicle can also help reduce your rates.

What is the minimum car insurance coverage required in California?

As of 2025, California law requires drivers to carry minimum liability insurance coverage, which includes $30,000 for bodily injury per person, $60,000 for bodily injury per accident, and $15,000 for property damage per accident.

Are there any special insurance programs for low-income drivers in California?

California offers a Low-Cost Auto Insurance Program for eligible drivers who may find standard premiums unaffordable. This program provides affordable liability coverage. It's based on income, vehicle value, and driving history, among other criteria.

What is the California Deductible Waiver?

You may be eligible for the California Deductible Waiver if you have collision coverage. This means that if an uninsured driver is responsible for an accident, your insurance company will pay the collision deductible on your car.

How do I show proof of car insurance in California?

If you're stopped by law enforcement while driving, you may have to provide proof of insurance. You can either use a physical card provided by your insurer or electronic proof on a mobile device. (E.g., your insurance policy.)