What is the recommended car insurance coverage in California?
The recommended car insurance coverage in California is at least $15,000 per person in bodily injury liability insurance ($30,000 per accident) and at least $5,000 in property damage liability insurance.
Most financial experts recommend raising your liability to $50,000 per person and $100,000 per accident if you have few assets. With more assets — like a house, expensive car, or large amounts of savings — experts recommend bumping your coverage up to at least $100,000 per person and $300,000 per accident.
The minimum liability car insurance requirements in California are $15,000 in bodily injury liability insurance per person ($30,000 per accident) plus $5,000 in property damage liability insurance. These requirements can also be written as 15/30/5.
Financial experts recommend that you carry at least $100,000 in bodily injury liability coverage for one injured person and $300,000 to pay the expenses of multiple victims in an accident. Most major car insurance providers will allow you to increase your coverage to these levels, perhaps even higher.
Geico, Progressive, USAA, State Farm and Allstate are the best car insurance companies in California based on cost, reputation and coverage options.
Full coverage car insurance is worth buying in many situations. When you include comprehensive and collision insurance policies, you cover the actual cash value of your car. That means that if your vehicle is totaled in a car accident, you'll get roughly as much for it as if you sold it.
The minimum car insurance requirement in California is 15/30/5, which is much lower than most other states. It means your policy should have at least the following: $15,000 for bodily injury liability per person. $30,000 for bodily injury liability per accident.
Travelers scored as the best car insurance company in California overall, according to NerdWallet's 2024 analysis. Drew Gula is a NerdWallet authority on auto insurance. He previously worked as the senior content editor at Soundstripe and as the senior writer in Liberty University's marketing department.
Key Takeaways: Geico, USAA, Mercury Insurance, Progressive and CSAA are the five cheapest car insurance companies in California, according to our research. The average cost of full-coverage car insurance in California is $193 per month or $2,313 per year.
For policies issued or renewed after January 1, 2025 the minimum limits for private passenger automobile insurance will increase to $30,000 per person, $60,000 per accident, and $15,000 for property damage. As noted, this law will not apply to policies issued or renewed in 2024.
What is the recommended bodily injury coverage in California?
Here are the minimum liability insurance requirements (per California Insurance Code §11580.1b): $15,000 for injury/death to one person. $30,000 for injury/death to more than one person. $5,000 for damage to property.
Nationwide, State Farm, Geico, USAA and American Family Insurance are our top five picks for affordable full-coverage insurance policies. The best way to find the cheapest full-coverage insurance for your needs is to compare quotes from a few different providers.
You could be sued if you get into an accident without insurance. California is also a “no pay, no play” state. That means you can't pursue non-economic damages such as emotional distress after an accident if you were uninsured at the time of the crash — regardless of who was at fault, according to WalletHub.
USAA, Nationwide, Travelers, Erie, Geico and Progressive are the cheapest car insurance companies nationwide, according to our analysis.
The cheapest car insurance company in California for most drivers is Geico. It costs an average of $35 per month for minimum coverage and $124 per month for full coverage. Mercury has the best rates for drivers with an accident or DUI on their record.
The cheapest car to insure in California is an SUV because minimum coverage only costs $709 per year, on average. The cost to insure a SUV is less than the average cost of minimum car insurance coverage in California ($1,174 per year).
Between 10 and 15 years after a vehicle's model year, full coverage is a poor investment. While the cost of full coverage by itself likely won't be more than what a car is worth, the cost of insurance is more likely to be higher than the value of the car after an accident.
Paying for comprehensive and collision — the coverages that many people mean when they say "full coverage" — may not be worth it if your car's value is minimal and your policy includes a high deductible. Usually, you have to have comprehensive and collision on a financed car because most lenders require it.
Once you've paid your vehicle off, you're no longer subject to any insurance requirements other than your state's minimums. If you want to drop some types of coverage to save money, that's up to you. Either way, have your insurer remove the lender as a lienholder on your policy.
| Age | Average Yearly Premium |
|---|---|
| 19 | $4,428.57 |
| 20s | $2,416.70 |
| 30s | $1,618.56 |
| 40s | $1,563.19 |
What does 15/30/10 mean in insurance?
If your limits are 15/30/10, this means: No more than $15,000 would be paid per person for Bodily Injury. No more than $30,000 would be paid per accident for Bodily Injury. No more than $10,000 would be paid per accident for Property Damage.
What does that mean? Minimum liability limits of 15/30/5 mean the insurance company will provide bodily injury liability coverage up to $15,000 per person injured in any one accident, $30,000 for all persons injured in any one accident, and up to $5,000 for property damages in any one accident.
State Farm is the largest auto insurer in California as well as the largest property and casualty insurer in the United States overall, providing more than 87 million insurance policies.
Cheapest car insurance companies for seniors in California
Cheapest for seniors at age 60: Progressive, $115 per month. Cheapest for seniors at age 65: Progressive, $122 per month. Cheapest for seniors at age 70: USAA, $133 per month. Cheapest for seniors at age 75: Geico, $142 per month.
Geico's rates are typically lower overall, but Progressive tends to offer better prices to high-risk drivers. High-risk drivers are those with a recent DUI, at-fault accident or speeding ticket on their driving record. Of course, costs vary by driver, and your rates are determined by a number of factors, including: Age.
