California car insurance

In 2026, California car insurance averages $76 per month for minimum coverage and $218 per month for full coverage.

Your driving record, annual mileage, and driving experience affect your rates the most in California.¹ Driving less, bundling policies, and comparing quotes can help you save on auto insurance in California.

The average California driver pays $76 per month, or $910 per year, for state-minimum car insurance. For full coverage, rates average $218 per month and $2,613 per year. Rates are typically higher than the national average in the Golden State.

Californians can also prove financial responsibility for accidents by getting a $75,000 surety bond or depositing $75,000 with the California Department of Motor Vehicles (DMV).² For most drivers, a liability insurance policy is usually cheaper. 

High rates of vehicle theft, uninsured drivers, insurance fraud, and higher minimum coverage requirements mean car insurance is more expensive in California than in most states. According to data from the National Association of Insurance Commissioners (NAIC), average premiums increased by more than 13% from 2022 to 2023.³

• Vehicle theft: California is #1 in vehicle thefts, with 136,988 vehicles stolen in 2025, according to the National Insurance Crime Bureau (NICB).⁴

• Uninsured drivers: 2022 estimates from the Insurance Research Council put California in 11th place for uninsured drivers, with 17% of Californians driving uninsured. That’s an increase of 21% from 2017.⁵ 

• Insurance fraud: Fraudulent claims increase insurers’ costs, which they usually pass on to drivers through higher insurance premiums. The California Department of Insurance (CDI) recommends watching for signs of staged collisions and being cautious of unsolicited referrals to medical providers, attorneys, or auto repair shops.⁶ 

• Higher minimum coverage requirements: California changed its minimum liability requirements beginning January 1, 2025. It doubled minimum bodily injury limits from 15/30 to 30/60 and tripled the minimum property damage limit from /5 to /15, which likely raised rates for drivers with state-minimum coverage.⁷

California requires drivers to carry liability insurance. The minimum liability limits required are 30/60/15.

Insurance companies must offer uninsured/underinsured motorist coverage, but you can decline it in writing.⁸ It may be worth having, though, given California’s high rate of uninsured motorists. It can help pay for your injuries and vehicle damage if someone else causes the accident and doesn’t have insurance or enough liability coverage.

Is California a no-fault or at-fault state?

California is an at-fault state. That means the at-fault driver pays for the damages and injuries they cause.

Despite a recent minimum coverage increase, California’s requirements are still relatively low. Drivers can sue you if their medical or repair costs exceed your liability limits, so it’s worth considering higher limits if you have assets or want more financial protection.

No single car insurance company is the cheapest for every California driver. Comparing quotes from multiple companies can help you find the cheapest for your coverage needs and driver profile. 

Check out the table below for some of the cheapest car insurance companies in California.

California works differently than most states. The most important rating factors in California are your driving record, annual mileage, and years of driving experience under Proposition 103.¹ Insurers also can’t use your credit score or gender when setting rates in California.⁹

• Driving record: Insurers weigh heavily on your driving history to determine how much you’ll pay. 

• Annual mileage: The less you drive, the more you might save.

• Driving experience: More experience behind the wheel often comes with lower rates.

• Vehicle: Insurers consider your vehicle type, value, loss history trends, and safety features and ratings to determine base premiums for each make and model. Higher-value and performance vehicles typically cost more to insure.

• Coverage level: Full coverage car insurance costs more because it protects you and your vehicle. State-minimum coverage is cheaper but provides only the bare minimum to legally drive.

How your driving record affects California rates

As the main rating factor in California, your driving record can have a major impact on your car insurance rates. 

Luva research also shows that California self-reported violation rate is below the national average of 28% at 26.8%.¹⁰

California gives qualifying good drivers a mandatory discount on their auto insurance. Drivers with no more than one point on their record and at least three consecutive years of driving experience must receive a rate that is at least 20% lower than the insurer’s non-Good Driver rate.⁸

How location affects California rates

Rates can vary across the state due to local factors like theft and accident rates, weather patterns, traffic density, and medical and repair costs.³

Drivers who can’t afford standard coverage may qualify for basic coverage through the California Low Cost Auto Insurance (CLCA) program. To qualify, you must:¹¹

• Be 18 years old (or 16 if legally emancipated)

• Have a valid California driver’s license

• Meet the state’s income eligibility requirements

• Own a vehicle worth $25,000 or less

• Have a good driving record

Income requirements vary by household size, from $39,900 for one person to $96,700 for five people.¹¹

Policies come with lower liability limits of 10/20/3 and will cover up to two vehicles. Rates vary by county, from around $17 per month ($199 per year) to $82 per month ($989 per year).¹¹

To apply, go to mylowcostauto.com, click on Apply Online, then fill out the eligibility questionnaire and the application. Once reviewed, a broker from Pacific Preferred Insurance will reach out to you within 24 to 48 hours to get proof of income and vehicle ownership to finalize the application.

The best way to find cheap California car insurance is to compare multiple insurers using the same coverage limits and deductibles to get a true “apples-to-apples” comparison. From there, you can look for discounts and decide whether your current coverage still makes sense for your vehicle and budget.

Here are some steps that could help lower your rates.

1. Check your mileage 

California gives annual mileage significant weight under Prop 103, so make sure the number on your policy reflects how much you actually drive.

2. Ask about discounts

Ask about discounts. Most insurers offer discounts for insuring multiple vehicles, being a mature driver, paying in full, and driving a safe car. If you qualify as a Good Driver in California, make sure you’re getting the discount.

3. Reconsider your deductibles 

If you can afford to take on more financial responsibility after a claim, increasing your comprehensive and collision deductibles can lower your rate. The Insurance Information Institute estimates 15% to 30% savings on those coverages when you raise deductibles from $200 to $500.¹²

4. Bundle your auto and home insurance

With a large number of insurers pulling back from California’s home insurance market, finding a bundle may be harder, but CDI’s 2026 Discounts report shows savings can reach 25% or more.¹³

5. Check rates before car shopping

Premiums vary by make and model, with safer vehicles typically costing less to insure. The Insurance Institute for Highway Safety (IIHS) provides vehicle safety ratings on its website to help you narrow down your choices. 

6. Consider liability-only on older vehicles

If your car isn’t worth much, it may not make sense to continue paying for comprehensive and collision coverage. The III recommends dropping them if your vehicle is worth less than 10 times the coverage cost.¹² Use Kelley Blue Book or the National Automobile Dealers Association (NADA) guides to determine your car’s value.

7. Compare quotes regularly 

Insurers frequently request rate changes in California, so it’s worth comparing quotes at each renewal.

Ready to compare rates? Luva can help you compare multiple quotes at once so you can find a competitive option for your needs. Not sure what policy and coverage are best? Chat with Lu to determine your coverage needs.