The best cheap car insurance in California for 2026

Car insurance rates in California are leveling off, but premiums in the Golden State are still more expensive than in much of the U.S.

The average annual full-coverage premium in California was $2,309 in 2025, according to data from Insurify. That's about $208 cheaper than in 2024, when insurers sought double-digit increases to offset pandemic-era rate freezes. But it's still well above the national average of $2,144.

CNBC Select has chosen the best auto insurance in California in a variety of categories, including affordability, customer service and seniors. Read our methodology for more on how we made our selections.

Who's this for? First Acceptance is ideal if your priority is getting the best rate: It had the lowest sample premiums of any of the companies we reviewed. You can also score discounts for being a homeowner, going paperless, choosing a higher down payment or taking a defensive driving course.

Standout benefits: The supplemental hospital indemnity plan can pay for medical expenses if you're injured in a covered accident, including your deductible and copay, nursing or ambulances. Acceptance also issues SR-22 forms to drivers who need to prove they have sufficient coverage.

Who's this for? Capital Insurance Group (CIG) offers numerous discounts, including for returning customers, bundling, good students and advance quoting.

Standout benefits: CIG's tenure discount rewards members the longer they stay with the company.

Who's this for? Wawanesa has topped J.D. Power's auto insurance survey in California every year since 2020 and has an A+ rating from the Better Business Bureau, making it the best choice for customer service.

Standout benefits: Wawanessa offers add-ons other providers don't, including coverage for aftermarket and custom parts following a covered loss.

Who's this for? In addition to already affordable rates, Safeco gives a discount to drivers 55 or older who complete an approved defensive driving course.

Standout benefits: If you stay claims-free, Safeco will send you a check for up to 5% of your premium annually. You can also save up to 30% with the RightTrack safe driving app.

Who's this for? CONNECT's gap insurance benefit covers the first three years you own your vehicle and includes new-car replacement.

Standout benefits: All policies include a glass repair deductible waiver and comprehensive plans cover the cost of changing your lock if your keys are lost or stolen. CONNECT offers discounts for good drivers, returning customers and for parking in a garage overnight.

Who's this for? Horace Mann offers many unique benefits for educators, including rate discounts and liability coverage if you transport students in an insured vehicle.

Standout benefits: The Educator Advantage package includes new car replacement coverage and no deductible for collisions or vandalism losses on or near school property.

Who's this for? Mercury is one of the few car insurance companies that offers rideshare coverage in California.  

Standout benefits: Rideshare insurance can cost as little as 90 cents a day more, according to Mercury. Repairs made by an authorized garage are guaranteed for as long as you own your car.

Who's this for? USAA is a standout for active-duty service members, veterans and their families. 

Standout benefits: In addition to its low rates, USAA offers benefits tailored to the military community, including discounts if you're deployed or park your vehicle on base.

According to Insurify data, California ranks 16th among states for auto insurance costs.

The average annual full-coverage premium in 2025 was $2,309, down about 8% from $2,517 in 2024.

California's minimum car insurance requirements include coverage for damage to other drivers and passengers, their vehicles, and property.

Here's the liability coverage limit you need to drive in California in 2026.

To cover you and your vehicle, you'll need full coverage car insurance, which includes comprehensive and collision coverage. If you are leasing or financing your car, you're probably required to have full coverage.

Whether you are looking for replacement coverage or a new policy, these steps can help find the right match.

Step 1: Get your information together

When you're getting quotes, you'll usually need to enter information about yourself and your car.

• Your driver’s license
• Your vehicle’s VIN (usually found at the bottom of your driver's side windshield
• Your car's make, model, year and mileage.

If you have coverage now, keep the policy details handy — including your premiums, limits, deductibles, exclusions and discounts — to match those quotes against your current policy.

Step 2: Get at least three quotes

When choosing an insurance company to investigate, make sure they operate in your state. Look at its financial strength ratings from A.M. Best, a good sign of whether it will be able to pay out on claims.

See its scores for customer satisfaction by J.D. Power and the Better Business Bureau and if the National Association of Insurance Commissioners says it has a high volume of complaints

After you’ve decided on your candidates, review the rates and look at the coverage types and limits. Make sure you can comfortably afford the deductibles.

Step 3: Buy your policy

Once you decide on the carrier and policy you want, you'll share your payment information and choose how frequently you want to pay your premiums. Most car insurance terms last six months or one year but, for a fee, you can often pay monthly.

There are several ways to lower your rates.

Shop around

Not all companies consider your driving history, age and other information the same, so getting rate quotes from several providers could help you find the best deal.

Raise your deductible

Your deductible is the amount you'll pay if you're involved in an accident. In most cases, the higher the deductible the lower your premium. Increasing your deductible from $200 to $500 could reduce the cost of collision and comprehensive coverage by up to 30%, according to the Insurance Information Institute.

You'll need to have more money on hand if you're involved in an accident, so if you don't think you can meet the deductible — or have a spotty driving record — this isn't the strategy for you.

Bundle your coverage

Getting your homeowners insurance from the same company you get car insurance can usually score you a discount. Bundling insurance can save you 25% or more, depending on the insurer. One of CNBC Select's top picks for homeowners insurance in California, Mercury offers a discount of up to 15% on auto insurance and 20% on homeowners insurance when you bundle.

Drop full coverage

Comprehensive and collision coverage are normally a very good idea. But if your car isn't worth much, the cost may outweigh the benefit. If your vehicle is worth less than 10 times your insurance premium, the Insurance Information Institute suggests dropping comprehensive and collision coverage and just keeping a liability policy.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed financial decisions. Every car insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of car insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

To determine the best car insurance companies in California, CNBC Select analyzed dozens of U.S. insurers offering coverage in the state.

When narrowing down and ranking companies, we compared rates, focusing on cost with a sample premium. We considered coverage, ease of use, J.D. Power customer satisfaction scores, A.M. Best financial strength ratings and the National Association of Insurance Commissioners complaint index.

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

Sample premium data was gathered from the California Department of Insurance's Automobile Insurance Comparison Tool, based on full coverage for a single driver who:

• Has five to seven years of driving experience
• Drives 10,000 miles per year
• Has no violations on their record
• Drives a Honda Accord

We considered sample premium data in several cities across California and gathered sample premium data for the same driver with the qualifications above in Burbank (Los Angeles County), Nob Hill (San Francisco County), Pacific Beach (San Diego County) and Rosemont (Sacramento County). These rates were averaged to create the state average annual sample premium.

From there, we sorted out picks by the best for affordability, best for discounts, best for seniors, best for new cars, best for teachers, best for rideshare drivers and best for active military members and veterans.

The premiums and policy structures cited for car insurance companies may fluctuate with company policies.

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