California Car Insurance Requirements
California requires all drivers to carry minimum liability insurance. Driving without insurance in CA can result in fines, license suspension, and vehicle impoundment.
Minimum Coverage Requirements
| Coverage Type | Minimum Required | Recommended |
|---|---|---|
| Bodily Injury (per person) | $15,000 | $100,000+ |
| Bodily Injury (per accident) | $30,000 | $300,000+ |
| Property Damage | $5,000 | $100,000+ |
| Uninsured Motorist | Optional* | Same as liability |
*Your insurer must offer uninsured motorist coverage, but you can decline in writing.
Average Car Insurance Costs in California
| City | Annual Average | Monthly Average |
|---|---|---|
| Los Angeles | $2,340 | $195 |
| San Francisco | $2,100 | $175 |
| San Diego | $1,920 | $160 |
| Sacramento | $1,740 | $145 |
| Fresno | $1,860 | $155 |
| State Average | $1,960 | $163 |
Best Car Insurance Companies in California
🏆 GEICO
Best for: Low rates, military discounts. Average: $1,450/year.
🥈 USAA
Best for: Military families. Excellent rates and service.
🥉 State Farm
Best for: Agent support, bundling. Large local network.
Progressive
Best for: High-risk drivers, Name Your Price tool.
California-Specific Discounts
- Good Driver Discount: 20% off for 3+ years without accidents/violations (CA law requires this)
- Low-Mileage Discount: Drive less than 7,500 miles/year
- Good Student Discount: 10-25% off for students with B average
- Defensive Driving Course: Complete DMV-approved course
- Anti-Theft Device: Alarm, GPS tracker, or kill switch
California Low-Cost Auto Insurance Program
California offers a state-sponsored low-cost insurance program for income-eligible drivers:
- Available to drivers with income at or below 250% of poverty level
- Provides state minimum liability coverage
- Premiums as low as $338/year
- Must have valid license and good-driver record
California Insurance Laws to Know
- Prop 103: Rates must be approved by Insurance Commissioner
- Credit Score Ban: Insurers cannot use credit score to set rates
- Gender Rating: Cannot use gender to determine rates
- Good Driver Discount: Legally required 20% discount