Best Car Insurance in California (2026)

California car insurance requirements

California law mandates that every driver carry minimum liability coverage of 15/30/5: $15,000 for bodily injury per person, $30,000 per accident, and $5,000 for property damage. These minimums rank among the lowest in the nation, but the state's high population density and urban traffic make carrying only minimums a financial risk. Most experts recommend at least 100/300/100 coverage for adequate protection.

Average rates and what drives them

The average California driver pays approximately $2,290 per year for full coverage and $780 for liability-only policies. Rates vary dramatically by ZIP code. Los Angeles and San Francisco drivers routinely pay 30-50% more than those in rural counties like Shasta or Humboldt. California is one of only three states that prohibits insurers from using credit scores to set premiums, which benefits drivers with lower credit but can raise rates for those with excellent credit.

Coverage level	Annual average
Liability only (15/30/5)	$780
Full coverage (100/300/100)	$2,290
Full coverage with umbrella	$2,650

Key factors unique to California

Proposition 103, passed in 1988, requires the California Department of Insurance (CDI) to approve all rate changes before they take effect. Insurers must justify increases publicly, giving consumers more transparency than most states. California also uses a "fault" system for accidents, meaning the at-fault driver's insurer pays claims. Uninsured motorist coverage is optional but strongly recommended: roughly 15% of California drivers are uninsured.

How to save on California car insurance

Bundling home and auto policies typically saves 10-15%. California's Low-Cost Auto Insurance Program (CLCA) offers liability coverage starting at $338 per year for income-eligible drivers. Good-driver discounts (three years without at-fault accidents) can reduce premiums by up to 20%. Completing a defensive driving course saves an additional 5-10% with most carriers. Shopping around annually remains the single most effective strategy: rates between carriers can differ by $800 or more for identical coverage.

Filing a claim in California

California requires insurers to acknowledge claims within 15 days and accept or deny within 40 days. If your claim is denied, you can file a complaint with the CDI, which investigates consumer disputes at no cost. For accidents involving injuries, California's two-year statute of limitations applies.