- California government car insurance for low-income drivers
- Best low income car insurance in California
- Cheap car insurance in California for low-income families
- Car insurance discounts in California for low-income drivers
- Compare auto insurance rates by city in California
- Methodology
- Source:
- Auto insurance FAQs
- Compare low-income car insurance rates in California with other states
California government car insurance for low-income drivers
Low-income drivers can apply for California's Low-Cost Auto Insurance Program to get affordable car insurance and meet legal requirements.
The requirements for the California low-income program are:
- Have a valid California driver’s license.
- Meet income eligibility guidelines based on the number of people in your household. For a family of four the maximum income is $78,000.
- Own a vehicle worth $25,000 or less.
- Be at least 16 years old, and, if under 18, legally emancipated
- Have a clean driving record or be a new driver
The program's rates vary based on factors such as your county and age. You can purchase coverage through any participating insurance agent or apply online.
The minimum car insurance requirements in California are as follows:
| Minimum liability coverage limits | Average annual premium | Other types of insurance required (if any) |
|---|---|---|
| 15/30/5 | $551 | - |
Remember that if you have a loan on your car, you’re required to carry full coverage, which includes collision and comprehensive.
Best low income car insurance in California
People on a tight budget still deserve great service from their car insurance company. We gathered the data on the top car insurance companies in California and compared them on rates for state-minimum coverage, financial stability and customer satisfaction based on J.D. Power and National Association of Insurance Commissioners (NAIC) scores.
Geico came out on top as the best pick for low-income car insurance.
These are the best low-income car insurance companies in California.
| Company | Average annual premium | J.D. Power | AM Best | NAIC | Insurance.com score |
|---|---|---|---|---|---|
| Geico | $367 | 830 | A++ | 0.91 | 4.02 |
| Progressive | $433 | 809 | A+ | 0.65 | 3.75 |
| State Farm | $569 | 826 | A++ | 0.7 | 3.65 |
| CSAA Insurance (AAA) | $457 | 822 | A | 0.75 | 3.62 |
| Travelers | $629 | 810 | A++ | 0.49 | 3.51 |
| Mercury Insurance | $458 | 794 | A | 0.84 | 3.36 |
| Nationwide | $712 | 794 | A+ | 0.64 | 3.15 |
| Allstate | $717 | 816 | A+ | 0.65 | 3.15 |
| Farmers | $774 | 810 | A | 0.8 | 2.91 |
| Auto Club Enterprises (AAA) | $623 | 832 | A+ | 2.21 | 2.77 |
| Kemper Insurance | $492 | 736 | A- | 2.16 | 2.18 |
Cheap car insurance in California for low-income families
Price is the number one consideration when working with a tight budget. We gathered rates from car insurance companies in California to find the cheapest options on average.
Based on state-minimum coverage, we found that the cheapest car insurance company in California is Geico at an average rate of $367 a year.
| Company name | Average annual premium | Average monthly premium |
|---|---|---|
| Geico | $367 | $31 |
| Progressive | $433 | $36 |
| CSAA Insurance (AAA) | $457 | $38 |
| Mercury Insurance | $458 | $38 |
| Kemper | $492 | $41 |
| State Farm | $569 | $47 |
| Auto Club Enterprises (AAA) | $623 | $52 |
| Travelers | $629 | $52 |
| Nationwide | $712 | $59 |
| Allstate | $717 | $60 |
| Farmers | $774 | $64 |
| USAA | $410 | $34 |
Car insurance discounts in California for low-income drivers
Discounts are the best way to bring down your car insurance rates. There are a number of discounts low-income drivers in California can take advantage of for cheaper insurance. Take a look at some common discounts and how much you can save below.
| Discount type | % Discount |
|---|---|
| Lower Annual Mileage | 12% |
| Loyalty - Years Renewal With Company | 11% |
| Marital Status | 9% |
| Multi Policy | 9% |
| Primary Use | 9% |
| Safety Devices | 3% |
| Telematics | 5% |
| Years Insured | 9% |
| Years Licensed | 41% |
Compare auto insurance rates by city in California
Auto insurance rates vary not just by state, but also by city. Cities have different levels of risk based on factors like accident rates, claim costs, weather and more. That means where you live in California will impact what you pay. Below, we've gathered California car insurance rates by city for comparison.
| City | Annual insurance premium |
|---|---|
Hayward | $2,546 |
Irvine | $2,502 |
Los Angeles | $3,149 |
Sacramento | $2,665 |
San Diego | $2,324 |
San Jose | $2,406 |
Temecula | $2,356 |
Methodology
Insurance.com commissioned car insurance rates from Quadrant Data Services in late 2023 for state minimum car insurance policies across all states. Rates are based on a 40-year-old driver with a clean driving record and good credit, driving a Honda Accord LX. We compared rates from 170 companies across 35,488 ZIP codes.
Source:
California’s Low Cost Auto Insurance. "Who Qualifies?” Accessed August 2024.
Auto insurance FAQs
What is the cheapest car insurance company for low-income people?
In California, the cheapest car insurance company is Geico. However, that’s based on average rates and may differ for you, so it’s important to shop around.
Does California have car insurance for low-income individuals?
Yes, California has a car insurance program for low-income individuals. It’s called California's Low-Cost Auto Insurance Program.
Compare low-income car insurance rates in California with other states
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